Securing a child’s future is the topmost priority of every parent. However, this is not an easy task as most people focus on building a strong financial cushion to safeguard their child while struggling to have enough funds when needed. This is why it is important to choose the right investment plans at the right time. Although there is a wide variety of investment plans available in the market, it makes sense to choose an investment plan depending on individual needs and suitability. One of the safest choices is a child insurance plan.

The best gift that any parent can give to his or her child is a safe and secure future. Thus, every parent should begin planning for the child’s future by making investments in comprehensive insurance plans that can cover for health and education. Before you invest in a health insurance or child education plan make sure to consider various aspects such as the premium costs, the expected cost of education, medical expenses, etc. 

In this article, we will discuss the common types of child insurance plans in India and some of the best plans to buy in 2021.

Types of Child Insurance Plans

Child ULIP

A child ULIP scheme gives individuals a three-fold advantage including, substantial insurance cover, disciplined investments, and exposure to the equity markets. Under child ULIP plans, the sum assured is given to the nominee child at the time of death of the insured parent. All future premiums are also waived off and the maturity amount is paid at the time of maturity. This, in turn, ensures that the child’s future is fully covered and they can fulfil their dreams.

Unit Linked Insurance Plans

The payouts in ULIPs are determined by market movements since the funds associated with ULIPs are invested in equity products. ULIPs are a good way of investing for longer tenures (generally more than 10-15 years). Some insurers also give the option of choosing between investments funds, thus allowing investors more control over the money invested. There are also some dynamic plans where the profits get transferred directly from equity to debt instruments over some time.

Traditional Endowment Plans

Endowment plans offer stable returns when it comes to bonuses on the sum assured. Bonuses are generally paid from the start of the 2nd year onwards. Investors can check if the bonus is offered in cash or if a reversionary bonus has a simple interest or gets compounded.

The Best Child Insurance Plans in India for 2021 

Bajaj Allianz Young Assure

Bajaj Allianz Life insurance is one of the major life insurance providers in India. This joint venture between Bajaj Finserv Ltd and Allianz SE started in 2001 and has since been in operation across the country. Bajaj Allianz Young Assure Plan is a smart choice for parents to ensure their young one’s future.

LIC Jeevan Ankur

LIC’s Jeevan Ankur is a traditional plan which comes with profits. It is specially designed to look after the educational and related needs of children. For parents with kids below the age of 17 years, LIC’s Jeevan Ankur is an ideal insurance plan which ensures that a parent’s responsibilities are met even if they do not survive. With this insurance plan, children do not have to be financially dependent on anyone.

HDFC Life YoungStar Udaan

HDFC Life YoungStar Udaan is a traditional participating insurance plan which is ideal for parents who want to create a provision for educational expenses of their children. This plan can help in meeting specific goals such as college fees or marriage expenses, extracurricular expenses expected to be incurred in college/school.

Reliance Nippon Life Child Plan

Reliance Nippon Life Child Plan is a custom-made plan for parents who want to see their child achieve all his/her dreams, irrespective of financial challenges and life’s uncertainties. The plan guarantees benefits for the child at every key milestone of his/her life, even in case of absence of the parent. There is also no stress of future premiums in case the parent is not alive.

Max Life Shiksha Plus Super

Max Life Shiksha Plus Super Plan is a Unit Linked Child Plan which helps in taking care of the child’s future needs by gathering a substantial corpus through market-linked returns and also offers various life insurance benefits.

Aviva Young Scholar Advantage

This non-participating plan is a unit-linked regular premium payment plan which enables the creation and continuance of wealth which your child may need at different life junctures.

Birla Sun Life Insurance Child Plans

This traditional participating child plan offers assured pay-outs at various stages. Birla Sun Life Insurance designs insurance plans which are specifically focussed on looking after your child’s growing needs. Whether it is career choices or hobbies or interests, Birla Sun Life Insurance helps in ensuring that the kid does not have to miss out on opportunities due to financial difficulties.

SBI Life – Smart Champ Insurance Plan

This traditional participating child insurance plan helps in covering for your child’s educational expenses. It comes with various smart benefits through four equal yearly instalments once your child reaches 18 years of age.

Exide Life Mera Aashirvad

Looking after the future of your child can be a huge responsibility and for meeting this responsibility, you will need to save a corpus for the future. This is where Exide Life Insurance child plan can be of great assistance. By investing in this plan, you can have the opportunity to create savings now and pay for your child’s education expenses or marriage expenses in the future.

Future Generali Assured Education Plan

Future Generali Assured Education Plan is a non-linked, non-participating insurance plan designed to give payouts at various education milestones for the child. It acts as a launching pad for the child’s bright future and ensures that a child’s education does not have to be compromised.

Wrapping Up

No parent would want to compromise on their children’s future, especially when it comes to education. Investing in a good child insurance plan helps in planning and ensures that your child is secure, no matter the financial difficulties. There are numerous child insurance plans available in the market and one can select a plan that best meets individual requirements. Make your choice depending on your child’s future requirements after considering different premium and benefit options.