What are Child Education Insurance Plans?

Child Education Insurance Plans are insurance plans that take care of your protection and savings needs for securing the future of your children. As a parent, one of your most important goals would be to make sure that your children have a bright future and lead their lives comfortably. These plans can help you achieve this by saving for your children’s higher education at a prestigious university.

In our Child Education Insurance Plan, you pay premiums for a specified period (monthly, half-yearly, yearly or single pay). Once the policy term ends, you receive a lump-sum amount called the Maturity Benefit. In case of an unfortunate event during the policy term, the company offers your nominee the life cover amount. The company also waives the future premium payments* for the remaining policy term to ensure that your children’s future is always secure. This benefit is available, provided all due premiums are paid.

Key Features and Benefits of a Child Education Plan

Lump-sum benefit

The plan provides your children with a lump-sum benefit in the case of your death within the policy term

Waiver of premium

Your child won’t be burdened with premium payments as the company pays it on your behalf. Thus, the policy continues to exist

Partial withdrawals

You can access your funds during the term in the form of partial withdrawals, subject to conditions. This takes care of your child’s different educational milestones

Tax benefits

Such a policy offers tax benefits to the policyholder under section 80C of the Income Tax Act^{^}

Loyalty Addition and Wealth Booster

These plans may also offer benefits such as Loyalty Addition and Wealth Booster, to help you grow your money without you needing to invest extra money

Riders

Depending on your plan, you may add riders that can enhance your coverage from the plan. These riders offer added security and financial support for you and your child in difficult situations

Flexibility

These plans offer you the flexibility to choose your policy term, premium payment options and frequency of payouts to suit your requirements. You can choose a policy term that aligns with your child's educational needs. You can also customise the premium payment terms to suit your budget. Additionally, the plan provides flexibility to choose the frequency and mode of receiving the payouts.

Security for the Future

Imagine your child dreaming of studying in a top-tier university abroad. A well-structured child insurance plan ensures that even if life throws unexpected challenges, those dreams remain intact. With this plan, you are not just saving for education—you are building a financial safety net for emergencies, like medical expenses or job loss. Whether it’s tuition or a life milestone like marriage, your investment ensures stability at every critical juncture.

In these uncertain times, knowing that your child will have the financial backup to pursue their aspirations provides peace of mind. This stability empowers parents to focus on other areas of life, knowing their child’s future is financially secure.

Protection Against Inflation

The cost of education in India rises by 11-12% annually¹, meaning a course that costs ₹10 lakhs today could cost almost double by the time your child is ready to enrol. With a child insurance plan, your savings grow over time, helping you stay ahead of inflation. This ensures that your hard-earned money doesn’t lose its value, giving you the financial power to meet educational expenses without compromise

By investing early, you can protect your savings from being eroded by rising costs, ensuring that your child receives the best education possible, even years down the line. Inflation won’t have the final say.

Regular Saving

Saving consistently, even in small amounts, can lead to substantial wealth over time. Think of it like planting a tree: the earlier you start, the bigger it grows. For example, saving just ₹ 5,000 per month in a child insurance plan starting from your child’s birth can accumulate into a significant fund by the time they turn 18. This discipline not only builds wealth but also fosters healthy financial habits for the family.

With each premium payment, you are not just securing your child’s future—you are developing a culture of saving. This regular investment makes achieving long-term goals like higher education or international study easier without financial stress. Why wait? Start investing today—because every small contribution now means fewer financial worries later.

Potential to Earn Higher Returns

A child insurance plan opens the door to investments that can yield higher returns than conventional savings methods. Through a mix of equity markets and debt instruments, your plan can align with your financial goals and risk appetite. For parents willing to embrace a bit of market volatility, the potential rewards are substantial if you handle the temporary risk.

Imagine your investment growing steadily, giving you the financial strength to fund your child’s ambitions—whether it is enrolling in a prestigious university or starting a new venture. These plans ensure that your savings not only stay safe but grow exponentially over time.

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How much should you invest in a child plan?

Education is the key to a bright future. Regardless of what stream or career your child chooses, ensuring that they go to a good school and college is your prime responsibility as a parent. Considering the fact that India is a developing country, the children of today have a massive role to play in the growth of the nation tomorrow. All of this can be achieved with a proper education. Not only does education open the realms of a financially secure life but can also help children develop an open mind and live a more mentally and physically balanced life.

However, the cost of education can be overbearing in some cases. As per a study conducted in 2019, it was found that the cost of education from primary classes up to post-graduation was ₹ 8,331 for a year for each student. This is only a general estimate that includes all types of schools and colleges across the country. The fee for private schools and colleges is a lot more than a public or government one. Professional courses such as engineering, medicine, and others can be even more expensive. If you combine these costs with inflation, the final figure will drastically increase further. It is hard to cover these costs with a limited source of income.

That is why, with a life insurance plan, you can ensure that your child’s future and dreams are financially secured, even in your absence.

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How to Choose the Right Child Education Plan?

Below are some things that can help you select the best child education plan:

• Multiple benefits: Choose a plan that offers multiple benefits, like life cover, growth of savings and waiver of premium in case of an unfortunate event.
• Partial withdrawal options: Ensure the plan allows partial withdrawals to meet unexpected financial emergencies.
• Reputation of the insurance provider: You should look for an insurance provider that is reputed, trustworthy and will be able to provide financial security to your loved ones when needed.
• Plan flexibility: Choose a plan that offers flexibility in terms of premium payment as per your convenience and changing circumstances.
• Investment options: A plan should offer multiple investment options, like equity, debt and hybrid funds that align with your risk appetite and investment objectives.

What are the Advantages of Early Planning for Your Child's Education?

Some advantages of planning for your child’s education early are:

• Reduces financial stress: When you invest early, you can invest smaller amounts which reduces your financial burden. The additional money can help you save for your other financial goals.
• Better returns: Starting early provides more time for your money to grow and offer better returns on investment.

List of Documents Required for buying Children Insurance plans

Proof of Age

Proof of Identity

Proof of Income

Proof of Address

Proposal Form

What documents are required for Child Insurance Claim process?

• For death claim, click here