Worried about your child’s education funding? Invest in your child’s education by purchasing a life insurance plan. But some life insurance plans may not generate the required corpus or provide the much-needed flexibility. So, choosing the right one from a wide-ranging list is vital to your cause. This is where we step up to help you select the best investment plan for your child’s education. In this post, you will get to know about the best plans suited for the said purpose. Let’s begin!
List of Best Investment Plans for Child Education
Investing in any of these best investment plans will ensure enough corpus for your children to complete their studies and join a lucrative career to move ahead in their lives. These plans offer funding at different stages for an uninterrupted education experience for your kids.
AEGON Life Rising Star Insurance Plan
AEGON Life Rising Star Insurance Plan is a unit-linked insurance plan that secures your child’s future by providing you the following benefits:
- In case of death of the life assured, the policy sum assured will be paid to the nominee and all due premiums will be waived till the date of the policy maturity. The asset allocation will change to ‘Invest Protect Option’, and at the start of every policy year after the death of the life assured, the nominee will receive an amount equal to the annualized premium. At the end of the policy term, the nominee will receive the base fund value.
- Upon survival till the maturity date, you will receive Fund Value + Top-Up Fund Value (if any). You can choose your tenure as per your convenience and receive the maturity benefit in installments.
- The minimum and maximum entry age for the parent is 18-48 years
- The minimum and maximum entry age for the child is 1day-15 years
Aviva Young Scholar Secure Plan
Aviva Young Scholar Secure Plan secures your child education funding by providing you the following benefits-
- Tuition Fee Support Benefit payable till the child reaches the age of 17 years
- College Admission Fund Benefit payable when the child turns 18 years old
- Higher Education Reserve payable when the child turns 21 years old.
Suppose your child is one year old at the time of policy inception. At the age of 13 years, the insurer will pay INR 15,000 till the child attains the age of 17 years. And when the child turns 18, you will get a lump sum benefit of INR 40,000, and INR 5,94,500 when your child turns 21.
In case of unfortunate death, the nominee/beneficiary will receive the death sum assured, which remains the highest of –
- 10X the annualized premium
- Maturity Sum Assured
- 105% of the total premiums paid
The premium amount starts from INR 50,000 per annum.
Edelweiss Tokio Life EduSave
This is a non-linked non-participating life insurance plan that helps you save money for your child’s education in a seamless way. Check out the benefits available under this policy:
- In case of the death of the life assured, the insurer will pay the sum assured to the nominee/legal heir and waives off all future premiums. Reversionary Bonus continues to be accrued under this policy till the maturity date. After the death of the life assured, the policy continues till the maturity date and a payout will be paid to the beneficiary/nominee
- Upon survival till the maturity date, the insurer will pay the Sum Assured plus accrued bonuses. The maturity benefits consist of two parts – Sum Assured payable in pre-defined installments (1-6 years) as chosen by you. And the accrued bonuses will be payable at the end of the policy term along with the first installment irrespective of the option chosen by you.
The premium amount starts from INR 6,968 and the minimum sum assured is INR 2.25 Lakh.
Exide Life Mera Aashirvad Plan
Under Exide Life Mera Aashirvad Plan, you’ll get guaranteed protection. The benefits payable under this plan are as follows:
- 100% of the Sum Assured is paid as a lump sum in case of an unfortunate event of death of the life assured, along with a waiver of your future premiums.
- You will receive a part of the sum assured as staggered payouts – 7.5%, 7.5%, 10% and 10% – on policy anniversary after the premium payment term if you choose option A.
- On maturity, the sum assured is paid as per the option chosen by you at inception. The maturity benefit payable under option A is 65% of the sum assured. Whereas under option B, you’ll receive 105% of the sum assured + Guaranteed additions.
The minimum sum assured is INR 3,50,000 for the premium payment term of 10-14 years and INR 4,50,000 for the premium payment term of 15-20 years.
Max Life Shiksha Plus Super Plan
Max Life Shiksha Plus Super is a unit-linked life insurance plan, you can get all-around protection for your child with the following benefits:
- In case of death of the life insured, the nominee will receive a death benefit
- Family Income Benefit (FIB) equaling 10% of the Sum Assured will be paid to the nominee each policy anniversary following the date of death till the end of the policy term (a maximum of 10 installments)
- Funding of Premium (FOP) – the insurer will fund all the outstanding premiums payable under this policy and provide the Fund Value to the nominee on maturity.
- Upon survival till the end of the policy term, the insurer will pay an amount equal to your Fund Value as on the date of maturity
The minimum annualized premium is as follows:
- INR 50,000 for 5 Pay
- INR 25,000 for regular pay (annual mode)
- INR 48,000 for regular pay (Non-annual mode)
The minimum sum assured is as follows:
- INR 5,00,000 for 5 Pay
- INR 2,50,000 for regular pay (annual mode)
- INR 4,80,000 for regular pay (Non-annual mode)
Note: The maximum sum assured is subject to board-approved underwriting norms.