An Introduction to Child Plans

Posted on

When one has a child, their life and goals change completely. The child becomes the center of parent’s existence. Every parent wants to give the best to their child regarding education, life, resources, and opportunities. And this is when child plans come to rescue and provides help to parents to secure their child’s future.  A child plan is an insurance plan in which the parents are insured and the child gets the benefits. Thus, the child not only receives maturity amount when the term ends, but is also eligible to get death benefits in case of sudden demise of the insured person.

What is Child Plan?

This is insurance-cum- investment plan that secures your child’s future financially and finance the major high points of his or her life such as higher education, career and marriage.  The best child plan protects the future of the child in case of sudden unfortunate demise of the policy holder and simultaneously builds a corpus over a term which can be used to finance the prime moments of his or her life.

Things to Consider Before Buying a Child Plan-

  • You need to consider as to at what stage of life, the child needs substantial money?
  • The amount of money that will be required.
  • The amount of money you can save on the basis of your income, expenses, and other priorities.
  • What kind of insurance coverage will be enough to meet the child’s expenses at different stages of his or her life?

Types of Child Plans-

A lot of companies offer various child plans, yet the child plans can be classified into three categories-

  1. Money Back Policies-

This plan offers the facility to withdraw money at regular intervals. You can withdraw a particular amount of money when your child gets the admission in college. The next time you can withdraw the money is when the child gets married. So on and so forth. If the insured person dies, the plan offers to waive the premium while the policy continues to be active.

  1. ULIPs-

These insurance plans are market related where the child receives the sum assured as a lump sum in case of sudden death of policy holder while the policy continues with a fund value being offered to the child at the expiration of the policy. The future premiums too will be paid off at the time of death of the parent. You can juggle your ULIPs between debt and equity to maximize gains without worrying about the taxes, but cannot be shifted from one ULIP to another.

  1. Endowment Policies-

This policy pays out the complete sum assured at the time of the maturity of the policy along with bonuses. This policy is based on debt investments and return might not be high, but are certain and consistent. You need to pay higher premiums to get higher returns. In case the parent dies during the term of the plan, the child is provided a lump sum amount at the time of death and at the time of maturity.

Various Child Plans Available in India

Child Plans Entry age Maximum Maturity age Minimum Annual Premium Minimum Sum assured
Bajaj Allianz Young Assure 18 – 50 years 60 years N/A 10 times Annualized premium
Birla Sun Life Insurance Vision Star Plus 18 – 55years 75 years N/A Rs. 1.00,000
Max Life Shiksha Life Super 21 – 50 years 65 years Rs. 25000/- Rs. 50000/-
ICICI Pru Smart kid Assure plan 20 – 60 years 75 years Rs. 15000/- 5times the annual premium
Aegon Life EduCare Advantage Insurance Plan 20 – 60 years 75 years N/A Rs. 100000/-
MetLife Smart Child Plan 18 – 55 years N/A Rs. 18000/- 10 times annual premium
Shriram New Shrividya Plan 18 50 years 70 years N/A Rs. 100000/-
Bharti AXA Life Child Advantage Plan 18 – 55 years 65 years N/A Rs. 25000/-
HDFC SL YoungStar Super Premium 30 – 60 years 75 years Rs. 24000/- Subject to underwriting
Exide Life MeraAshirvaad Plan 21 – 50 years 65 years N/A Rs. 3.5 Lakhs
SBI Life Smart champ Insurance Plan 21 – 50 years 70 years Rs. 6000/- Rs. 1 lakhs
Edelweiss Tokio Life Edu Save Plan 18 – 45 years 60 years Rs. 6968/- Rs.225000/-
Aviva Young Scholar Advantage Plan (Child Education Plan) 21 – 45 years 60 years 10 – 25 years 10 times the annual premium
Future Generali Assured Education Plan (Child Education Plan) 21 – 50 years 67 years Minimum : 17 years minus the age of the child N/A
MetLife College Plan (Child Education Plan) 20 – 45 years 69 years 12 – 24 years Rs. 2,12,040/-
SBI Life Smart Scholar (Child Education Plan) 18 – 57 years 65 Years 8 – 25 years 10/7 times the annual premium (regular pay) 1.25 times single premium (single pay)



The child plans offer wavier of future premiums as a benefit which is provided as a rider or inbuilt option. The premium goes higher with such features, but ensures that the child’s important life goals are not missed because of lack of funds due to parents’ death.