Top 10 Child Insurance Plans of India
Posted on: April 7, 2017, by : Team ServeTM

Sandeep and Shilpa are a happily married couple blessed with a baby last month. Like any other parents, their top most priority is to start investing for their child’s future. At this time, one of Shilpa’s friends suggested her to go for children insurance plan. Shilpa wanted to know about this in detail as it is for her child and lot of emotions attached. Like her, every parent wants to know more on the investment they are choosing for child. Which is the best among the various plans available is always a big question for many parents.

For Parents, children are everything and they want the world for them. Raising a child as successful person is a dream of every parent. Education is the top most priority and every parent wants their child to get the education of highest level. Effective financial planning for child is a key to successful parenting. As we all know, education is insanely expensive these days and investing for child’s secure future for this reason has become a top most priority.

What is Child Insurance Plan?

Child insurance plan is a savings oriented insurance product that caters two purposes- financial security to child in case of unfortunate death of parent and also builds an adequate corpus to finance the major life events of child such as higher education and marriage. Basically, it creates adequate wealth along with providing a life cover. Child plans come as both traditional as well as unit linked plans.

Best Child Insurance Plans

Here are some best child plans from popular insurance providers in the market on the basis of features and the riders they offer at reasonable rate to suit the various needs of investors.

  1. HDFC SL YoungStar Super Premium
Parameter Minimum Maximum
Entry age 18 years 65 years for life option

55 years for life + health option

Maturity age 75 years for life option

65 years for life+ health option

Policy term 10 years 20 years
Sum assured 10 times of annual premium 40 times of annual premium
Premium payment mode Annually
Policy type Unit linked insurance plan
Features ·         On demise or diagnosis of critical illness of life insured child would receive the sum assured and the future premiums would be paid by insurer either 100% towards the policy or 50% to policy and 50% to beneficiary depending on the options chosen. Fund value is paid on maturity.

·         Four different funds to choose depending on the risk appetite.

Riders Critical illness benefit  is a inbuilt rider in life+ health option

 

  1. Max Life Shiksha Plus Super
Parameter Minimum Maximum
Entry age 21 years 50 years
Maturity age 60 years for 5 pay variant

65 years for regular pay variant

Policy term 10 years 25 years
Sum assured 10 times of annual premium No limit
Premium payment mode Annually, semi-annual, quarterly, monthly
Policy type Unit linked insurance plan
Features ·         On demise of insured parent, child would receive the sum assured and the future premiums would be paid by insurer. Fund value is paid on maturity.

·         On premium paying policies, 0.20% of the fund value shall be added to the fund at the end of every policy year starting from 11th Policy Year. The Loyalty Additions increase by 0.02% (absolute) each year thereafter.

·         5 different variants for investments which can be chosen and switched to during the policy term with the convenience of investor.

Riders No riders available.

 

  1. Aviva Young Scholar Advantage Plan
Parameter Minimum Maximum
Entry age 21 years 50 years
Maturity age 70 years
Policy term 10 years 25 years
Sum assured Higher of 10 x annual premium or 0.5 x policy term x annual premium 2.5 x policy term x annual premium
Premium payment mode Annually, semi-annual, monthly
Policy type Unit linked insurance plan
Features ·         On demise of insured parent, child would receive the sum assured and the future premiums would be paid by insurer. Fund value is paid on maturity.

·         Loyalty additions are added to the fund at the end of every policy year starting from 11th Policy Year

·         9 different fund options for investments provide a better investment opportunity.

Riders 3 optional riders (child education, comprehensive health, term plus) are available.

 

  1. SBI Life Smart Scholar Plan
Parameter Minimum Maximum
Entry age 18 years 57 years
Maturity age 60 years
Policy term 8 years 25 years
Sum assured higher of 10 x annual premium or 0.5 x policy term x annual premium (age < 45)

higher of 7 x annual premium or 0.25 x policy term x annual premium ( age > 45)

20 x annual premium
Premium payment mode Single premium, annually, semi-annual, quarterly, monthly
Policy type Unit linked insurance plan
Features ·         Child would receive the sum assured and the future premiums would be paid by insurer in case parent insured dies. Fund value is paid on maturity.

·         Along with market related growth, loyalty additions are added to the fund

·         Flexibility to choose from 7 types of fund options for investment to diversity the risk.

Riders Premium payor, accidental death or disability riders are inbuilt riders.

 

  1. PNB MetLife College Plan
Parameter Minimum Maximum
Entry age 20 years 45 years
Maturity age 69 years
Policy term 12 years 24 years
Sum assured Rs. 212040 Rs. 5 Cr
Premium payment mode annually, semi-annual, quarterly, monthly
Policy type Non-participating non-linked endowment plan
Features ·         Death Benefit: sum insured + vested reversionary bonuses. Policy remains active with all future premiums being waived.

·         Maturity Benefit: Survival benefit of 20% of sum assured in the last three years of policy and remaining 40% on maturity.

Riders No riders.

 

  1. AEGON Life Rising Star Plan
Parameter Minimum Maximum
Entry age 18 years 60 years
Maturity age 75 years
Policy term 25 – age at entry of child
Sum assured higher of 10 x annual premium or 0.5 x policy term x annual premium (age < 45)

higher of 7 x annual premium or 0.25 x policy term x annual premium (age > 45)

30 x annual premium
Premium payment mode annually, semi-annual, monthly
Policy type Unit linked insurance plan
Features ·         Sum assured is paidon death and the future premiums would be paid by insurer. Fund value is paid on maturity.

·         4 plan options to fight market volatility with auto rebalancing.

Riders Critical illness and accidental death or disability benefits are additional riders.

 

  1. BSLI Dream Child Plan
Parameter Minimum Maximum
Entry age 18 years 65 years
Maturity age 75 years
Policy term Guaranteed savings date + 20 years
Sum assured higher of 10 x annual premium or number of years to maturity/2 ( age < 45)

higher of 7 x annual premium or number of years to maturity/4 ( age > 45)

Premium payment mode annually, semi-annual, quarterly, monthly
Policy type Unit linked insurance plan
Features ·         Joint life policy wherein both parent and child is insured

·         Guaranteed additions are added from 11th policy anniversary

Riders 4 additional riders ( accidental death and disability, critical illness, surgical care and hospital care)

 

  1. Bajaj Allianz Young Assure Plan
Parameter Minimum Maximum
Entry age 18 years 50 years
Maturity age 60 years
Policy term 10 years 20 years
Sum assured 10 x annual premium
Premium payment mode annually, semi-annual, quarterly, monthly
Policy type Participating non-linked plan
Features Comprehensive coverage for death and accidental disability

Guaranteed maturity benefit + guaranteed additions + vested bonus + interim bonuses are paid on maturity

Riders 3 additional riders ( critical illness, family income, premium waiver)

 

  1. ICICI Pru Smartkid Solution
Parameter Minimum Maximum
Entry age 20 years 54 years
Maturity age 64 years
Policy term 10 years 25 years
Sum assured 10 x annual premium No limit
Premium payment mode Single premium, annually, semi-annual, monthly
Policy type Unit linked insurance plan
Features 2 types of investment strategy to suit your need (fixed portfolio and life-cycle based strategy )

Future premiums are paid by company in case of death after paying death benefit.

Loyalty addition and wealth booster are unique features.

Riders No riders.

 

  1. Bharti AXA Life Child Advantage Plan
Parameter Minimum Maximum
Entry age 18 years 55 years
Maturity age 76 years
Policy term 11 years 21 years
Sum assured 25000  
Premium payment mode annually, semi-annual, quarterly, monthly
Policy type Traditional participating savings plan
Features ·         Flexibility to choose between 2 maturity benefits (money back and endowment) with in-built premium waiver benefit.

·         Vested reversionary bonus and terminal bonus if any are paid along with maturity benefit.

Riders 4 additional riders ( Hospi cash and accidental death benefit)

 

Our advice is to start investing early for secured future of your child and also to ensure your child to achieve milestones of life without any financial hurdle. List above will help you make a better choice.

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