These days, many parents examine the unit-linked insurance plans and child-saving schemes that insurance firms and fund houses often provide. They do offer insurance and some kind of assurance for your child’s protection during their schooling, but the returns are not good. In contrast, should you deduct the cost of these children’s policies, your returns will be less.
Choose a straightforward term insurance plan which might cover all of your needs if you want to ensure that your child’s schooling and other costs are covered in the event of your untimely death. After purchasing insurance, you might consider the alternatives below to create a strong fund for your child’s education. To know more about the best child plans, read on.
What Are Some Of The Best Child Insurance Plans In The Market?
Following are some of the best child insurance plans available in the market –
- SBI Life Smart Scholar – It is a ULIP plan that does not participate. In the event that you are absent, your family is double protected by this plan. The base sum is insured, as well as an incorporated premium or an incorporated withdrawal indemnity ensure that your insurance will remain in effect.
- SBI Smart Champ Insurance Plan – A participating unconstrained individual life insurance plan, this one is intended to cover your child’s future schooling costs. It gave the applicant insurance coverage and benefits that are payable for the duration of the policy. In the case of a term insurance plan, he would be covered for life as well as to the policyholder in the event of death and accidental complete permanent impairment.
- Sukanya Samriddhi Account – This is a great child investment option and another great investment strategy that will help you accumulate funds for your child’s education. This programme offers tax-free interest at a rate of 7.6%. Of course, you can only take this into consideration if your child is a girl.
- Bharti AXA Life Child Advantage Plan – This plan is a traditional child plan that assures returns while enabling members to partake in the company’s earnings through bonuses earned. It is also regarded as the finest children’s plan insurance. Participants in this non-linked plan have the opportunity to choose between money-back and endowment alternatives.
- HDFC SL YoungStar Super Premium Plan – This unit-linked insurance policy is the greatest option for child insurance since it helps children save money for use during different phases of their lives, such as further education, marriage, and more.
It’s critical to comprehend the value of quality education in India. India is quickly becoming a society where the wealth gap between the affluent and the poor is growing. A solid education can provide your child the opportunity to start earning a comfortable living and, more crucially, prevent them from being a burden on your income when you need it for retirement.
Similarly, the lock-in is the sole issue, but a longer period of time is spent developing a good corpus. Additionally, a tax advantage is provided by Section 80C of the Income Tax Act. One must be careful to remember that this technique is solely for girls. Therefore, you might choose this programme if you have a girl child and want to save money for either her wedding or her schooling. Once more, the lock-in is the sole concern, but you are also creating a sound corpus over a longer period of time.
Endnotes
In addition to the child investment plans already discussed, there are other varieties of child insurance plans on the market that are made expressly to provide for the needs of children and assure their financial stability.