Children’s Day 2024: Insurance and investment plans that can secure your kid’s future

With rising education costs, especially for international studies, it’s crucial for parents to plan ahead. Investing in a child plan is one of the ways to build a dedicated fund for their future needs — be it for education, health, or other essential expenses.

According to Vivek Jain, Head — Investments at Policybazaar, “A child investment plan serves as a proactive tool to build a dedicated fund. Whether it’s for tuition, books, or other educational expenses, these plans help manage inflation and ensure uninterrupted education for the child.”

Below are the key types of child insurance and investment plans available in the market.

Child education plans

These plans focus on ensuring that your child’s education is financially supported, even as costs increase over time.

Some plans also offer lump sum payouts when the child reaches a certain age, helping parents cover tuition and related expenses.

Examples:

• ICICI Prudential Smart Life Plan: Provides a lump sum payout at the child’s milestone age for education, along with life cover.
• HDFC Life YoungStar Udaan: Helps accumulate a fund for the child’s future education while offering financial protection to the parent.

Child savings plans with investment options

Child savings plans are designed for long-term wealth creation.

These plans offer the dual benefit of investment growth (equity, debt, or hybrid funds) and life insurance coverage, allowing parents to build a sizeable corpus for their child’s future.

Examples:

• Max Life Online Savings Plan — Variant 2: Offers high-growth potential with a focus on equity funds, helping build wealth for your child’s education or other future needs.
• Bajaj Allianz Life Smart Wealth Goal V — Child Wealth: Focuses on mid-cap equity funds, which offer the potential for higher returns over the long term.

Child plans with waiver of premium (WOP)

The WOP feature ensures that if something happens to the parent, the policy continues without interruption. The future premiums are waived off, but the investments continue to grow, securing the child’s financial future.

Insurer Name	Plan Name	Fund Name	10-Year Returns (%)*	Minimum Premium
MAX Life	Online Savings Plan – Variant 2	High Growth Fund	19.20%	₹ 1,000
TATA AIA Life	Smart SIP – Future Secure	Whole Life Mid Cap Equity Fund	19.10%	₹ 1,000
Aditya Birla Capital Life	Wealth Smart Plus	Multiplier Fund	17.10%	₹ 1,000
PNB MetLife	Goal Ensuring Multiplier – Income Assured	Virtue II Fund	16.60%	₹ 1,500
Bajaj Allianz Life	Smart Wealth Goal V – Child Wealth	Accelerator Mid-Cap Fund II	15.80%	₹ 1,000
HDFC Life	Sampoorn Nivesh – Classic Waiver Benefit	Opportunities Fund	15.70%	₹ 1,000
Kotak Life	E-Invest – Rising Star	Frontline Equity Fund	14.70%	₹ 1,000
ICICI Prudential Life	Signature Assure	Opportunities Fund	12.80%	₹ 2,500
Canara HSBC Life	Promise4Growth – Care	Growth Plus Fund	10.40%	₹ 1,000

(Source: Policybazaar)

Endowment plans for children

Endowment plans offer a combination of life insurance and savings. These plans provide life cover while also growing a fund that can be accessed when the child reaches adulthood, ideal for funding education or even a future marriage.

Examples:

• Canara HSBC Life Promise4Growth — Care: This endowment plan guarantees a lump sum payout after a set period, ensuring the child’s financial future is secure.
• PNB MetLife Goal Ensuring Multiplier: Offers a combination of life cover and an assured income benefit at the time of maturity.

Child health insurance plans

Child health plans provide comprehensive coverage for medical expenses, including hospitalisation, surgeries, and vaccinations. These plans ensure that your child’s medical needs are taken care of, no matter how young or old they are.

Examples:

• Star Health & Allied Insurance Family Health Optima Plan: Covers all family members, including children, ensuring medical emergencies are financially supported.
• Religare Care Plan: A family floater plan that includes coverage for children and offers financial protection in case of critical illnesses or hospitalisation.

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