Top 10 Child Insurance Plans to Invest in 2017

Due to day to day rising cost of education, parents are becoming anxious for the future of their children. According to a survey conducted by ET Wealth, over 60% parents listed this as their biggest concern. They are also worried about the lack of savings that may obstruct their child to realize their dreams.

It’s a distressing moment for any parent leaving their children without providing them the adequate funds to lead a comfortable life. Here is the reason, why you should invest with the best child insurance plan.

Child insurance plan provides a lump sum amount on the unfortunate demise of the policyholder (parent/legal guardian), provided the policy is in-force. Apart from the death benefit, all future premiums are waived and the policy continues till the maturity of the policy. The child receives the money at pre-specified intervals, especially on his key education milestones, so the parent ensures that his child’s future is completely secured, even in his absence.

Some of the child plans are market-linked policies and others are traditional plans. In this article, we are providing details of the top 10 child plans, you can consider investing in 2017.

ICICI Pru Smart Kid Plan

ICICI Pru Smart Kid Plan is a ULIP plan that provides you the multiple fund options that ensures wealth accumulation for your child, so he/she does not have to give up on the dreams. This plan provides money at the key education milestone of your child that ensures financial security for your child.

Key Features & Benefits

The Death Benefit payable is:
Lump Sum Benefit: The higher of Sum Assured (including Top-up Sum Assured) or Minimum Death Benefit is payable as a lump sum amount.

Smart Benefit:Units equivalent to the installment premium are allocated on the premium due date. This benefit is applicable for only Regular Pay Policies.

  • Maturity Benefit is the The Total Fund Value including Top-up Fund Value is payable at maturity.
  • You have the option to invest in 8 different funds.
  • Top-up premium facility is also available under this policy.
  • Take advantage of switching, premium redirection & Partial withdrawal.

Aegon Life Rising Star Insurance Plan

Aegon Life Rising Star Insurance Plan is a unit linked insurance plan in which you have an option to invest in 4 different funds. By systematically managing your investment, you can create wealth for your children and give him a more secured future.

Key Features & Benefits

  • Death Benefit is the Sum Assured payable immediately on your death. It also pays Annualized Income Benefit to the beneficiary after death. Premium Waiver Benefit is also available.
  • Maturity Benefit is the The Total Fund Value (including top-up fund value) is payable on the maturity date.
  • Top-up premium helps to boost the fund value.
  • Avail switching, premium redirection & Partial withdrawal facility.

HDFC SL YoungStar Super Premium Plan

HDFC SL YoungStar Super Premium Plan is a ULIP plan that helps to fulfill your child’s immediate and future needs. This child insurance plan helps build savings that can finance your child’s education, marriage, or other expenses. Under this plan, you can opt for life option or life & health option.

Key Features & Benefits

  • You can avail death benefit & critical illness benefit, depending you are opting for Save Benefit or Save–n-Gain Benefit.
  • Maturity Benefit payable is the Fund Value as on the maturity date.
  • You can choose from 4 fund options to invest your money.
  • You can take advantage of partial withdrawal to meet unforeseen financial expenses.

Tata AIA Life Insurance Goog Kid Plan

Tata AIA Life Insurance Good Kid Plan is a non participating Unit Linked Child Plan that continues till maturity of the policy, irrespective to the life insured is alive or not. This policy provides attractive maturity returns plus secures your child’s academic future.

Key Features & Benefits

  • Death Benefit payable is the higher of Basic Sum Assured or 105% of the total Regular Premiums paid is payable as the death benefit. All the future regular premiums after death are also waived.
  • Maturity Benefit is The Total Fund Value payable on the maturity date.
  • You can choose from 8 investment fund options to invest your money.
  • You have an option to pay additional premium through top-ups.
  • You can avail partial withdrawal to meet unforeseen financial expenses.

Bharti AXA Life Child Advantage Plan

Bharti AXA Life Child Advantage Plan is a traditional participating savings plan that provides you the flexibility to choose between Money Back or Endowment Option. This child plan helps fulfill the needs and career goals of your child.

Key Features & Benefits

  • Death Benefit payable is higher of Sum Assured on Death or 105% of all premiums paid.
  • Maturity Benefit payable depends on the Maturity Benefit option chosen.
  • The Guaranteed Payouts are payable every year, starting from 5th year to 1st year prior to the maturity date.
  • Non-Guaranteed Annual Simple Reversionary Bonus and Non-Guaranteed Terminal Bonus is payable under the policy.

BSLI Vision Star Plan

BSLI Vision Star Plan is a traditional participating insurance plan, which aims to provide payouts for key milestones for your child. By investing in this plan, nothing will prevent your child in realizing his/her dreams.

Key Features & Benefits

  • Death Benefit payable is the Sum Assured on Death plus Assured Payouts plus bonuses accrued till policy maturity date. Waiver of the future premiums is also available after death.
  • Maturity Benefit is Accrued bonuses plus Terminal bonus payable at maturity of the policy.
  • Guaranteed Payouts in the form of Simple Reversionary Bonus plus interim bonuses and Terminal Bonus are payable.
  • This policy also provides Assured Payouts depending on the option chosen.
  • You can avail Loan Benefit up to 85% of the surrender value.

HDFC Life YoungStar Udaan Plan

HDFC Life YoungStar Udaan Plan is a traditional participating insurance plan that helps fulfill your child’s dreams. Just dream big for your child and by investing in this plan, this plan helps achieve your child’s goals, even in your absence.

Key Features & Benefits

  • Death Benefit payable is higher of the sum assured on death or 105% of the premiums paid. All future premiums are waived off after death.
  • Maturity Benefit is the sum of last guaranteed payouts (moneyback options) or sum assured on maturity (endowment option), accrued guaranteed additions, reversionary bonus, interim bonus and terminal bonus.
  • This policy provides Simple Reversionary Bonus and Terminal Bonus.
  • You can avail Loan Benefit up to a maximum of 80% of the surrender value.

MetLife College Plan

MetLife College Plan is the best saving plan for child that offers regular cash payouts and bonuses at the important milestones of your child, so your child’s educational expenses are covered. This policy also provides the waiver of future premiums, in the event of death.

Key Features & Benefits

  • Death Benefit payable is Death Sum Assured plus accrued simple reversionary bonus is payable.
  • Maturity Benefit is the maturity sum assured plus accrued simple reversionary bonuses plus terminal bonus is payable.
  • Survival Benefit is payable every year as 20% of the base sum assured is payable every year, during the last 3 years prior to maturity.
  • The maximum Loan Benefit that can be availed under this policy is up to 90% of the special surrender value.

IDBI Federal Childsurance Savings Protection Insurance Plan

IDBI Federal Childsurance Savings Protection Insurance Plan is a non-linked participating plan, which provides guaranteed annual payouts at key milestones of your child, even when you are not around. This policy continues even after your unfortunate demise and the company pays the future outstanding premiums. This child plan thus ensures that your child will realize his/her dreams.

Key Features & Benefits

  • Death Benefit is the death sum assured payable immediately. All the future premiums are waived and the nominee will receive the guaranteed annual payouts.
  • Maturity Benefit payable is the sum of maturity sum assured and declared bonuses.
  • The Loan Benefit that you can avail is up to 85% of the surrender value.

Canara HSBC OBC Smart Junior Plan

Canara HSBC OBC Smart Junior Plan is a non-linked participating savings insurance plan that is designed in a manner that your child’s educational needs are fulfilled, even in your absence. This plan also provides guaranteed payouts during the last 5 years of policy to suit your child’s educational milestones.

Key Features & Benefits

  • Death Benefit is equal to an immediate lump sum benefit plus Guaranteed Annual Payouts plus Guaranteed Sum Assured on maturity plus Bonuses are payable. All the future premiums are waived and the policy continues till its maturity.
  • Maturity Benefit payable is 20% of Sum Assured plus accrued Annual bonuses and Final bonus.
  • Guaranteed Annual payouts at the end of each of the last 4 policy years before the year of maturity is payable.
  • The loan amount that can be availed is up to 80% of the surrender value.

Being a responsible parent, you should make intelligent financial planning to secure the future of your children. Investing with best child insurance plan is an optimal way to ensure a secured future for your children. Choosing the best child insurance plan provides payouts to suit your child’s key milestones that can ensure a comprehensive protection, even if you are not around.

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

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