Investment Plans June 21, 2021

Best Investment Plans for Your Girl Child

Are you planning for your girl child’s future and looking for a strong financial cushion? We have the list of best investment plans for your girl child. A life insurance plan ensures your child’s financial protection even if you are not around. In a child investment plan, you’ll receive regular payouts to manage the financial needs of your children such as marriage, education, etc. So,  read this page further and know more about the best investment plans for a girl child in India.

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Which are the Best Investment Plans for a Girl Child?

You need a plan that has a low premium rate, beats the inflation rate, covers the cost of education and medical expenses. Check out the plans below and see which one meets all these.

  1. Sukanya Samriddhi Yojana
  2. LIC Kanyadan Policy
  3. Aegon Life Rising 
  4. Bajaj Allianz Young Assurance Child Plan
  5. Bharti AXA Life Child Advantage Plan 
  6. Canara HSBC Smart Junior Plan 
  7. Aditya Birla Sun Life Vision Star Plan 
  8. HDFC SL Youngstar Super Premium
  9. Kotak Headstart Child Assure Plan 

Sukanya Samriddhi Yojana

You can purchase Sukanya Samriddhi Yojana Plan for your girl child before she reaches the age of 10 years. Under this scheme, a savings account is opened for girls up to the age of 10 years (as per the childbirth certificate). The Sukanya Samriddhi account interest rate is 8.1% per annum, which is compounded yearly. A maximum contribution to the Sukanya Samriddhi account is limited to INR 1.50 lakh in a financial year.

You can make a partial withdrawal under this account when the girl child reaches the age of 18. You can use the fund to pay for education or marriage expenses. The maximum withdrawal limit is up to 50% of the balance standing at the end of the preceding financial year. Sukanya Samriddhi’s account will mature on completion of 21 years from the date of its opening.

Note: A minimum amount of INR 750 is required for opening a Sukanya Samriddhi account.

LIC Kanyadan Policy

LIC Kanyadan Policy provides financial protection to your girl child in case of an unfortunate event of your death. Check out the list of benefits available under this investment plan for girl child:

  1. If the girl child guardian dies, the insurer will pay a death benefit of INR 5 lakh immediately
  2. In case of an unfortunate event of the death of the girl child, the insurer will pay INR 1 Lakh each year till the end of the policy term plus all the future premiums are waived off.
  3. If the girl child death occurs due to an accident, the insurer will pay INR 10 Lakh
  4. If you deposit INR 251 on LIC Kanyadan Policy regularly, you will get INR 51 lakh after 25 years of the premium payment term.

Note: LIC Kanyadan Policy maturity age for the girl child is 13 to 25 years

The above two plans are dedicated to girls, the ones mentioned below are for both girl and boy. But they are good too. So, you should consider the same.

Aegon Life Rising Star Insurance Plan

You can purchase Aegon Life Rising Star Insurance Plan if your age is 18-48 years. The maximum age allowed till maturity is 65 years and the premium payment frequency is monthly, half-yearly, and yearly. The minimum annualized premium for the annual mode is INR 20,000 per annum and INR 30,000 per annum for other modes. Under this policy, you’ll get the following benefits:

  1. The death benefit is payable to the nominee in case of the unfortunate demise of the life assured. An amount equal to the annualized premium will be paid to the nominee at the start of every policy year following the date of death till the end of the policy term. At this point, the base Fund Value will also be paid to the nominee.
  2. On maturity, you’ll receive the Fund Value including the Top-Up Fund Value, if any

Bajaj Allianz Young Assurance

This is a traditional savings plan by Bajaj Allianz to secure your girl child from any unfortunate event. You can receive the policy maturity benefit in cash installments as chosen by you at inception. The first installment will commence at the end of the policy term. In case of unfortunate death of the life assured, a death benefit of 105% of the total paid premiums shall be payable to the nominee and the policy will attain the paid-up status. At the end of the policy term, the maturity benefit will be payable to the nominee

This policy has an inbuilt Accidental Permanent total disability benefit, so you’ll get all-around protection. The entry age for Bajaj Allianz Young Assurance plan is from 18-50 years and the maximum age of the policyholder allowed till maturity is 60 years.

Note: The sum assured amount is 10X the yearly premium.

Bharti AXA Life Child Advantage Plan

Bharti AXA Life Child Advantage Plan is a traditional child investment plan that offers two options to avail the maturity benefits:

  1. Money-back benefit
  2. Endowment benefit

In money back benefit, a guaranteed payout shall be made in the last five policy years before the maturity to meet your girl child’s education needs. The payout shall be made in the following format:

  1. At the end of the 5th policy year before the maturity date – 10% of the sum assured
  2. At the end of the 4th policy year before the maturity date – 10% of the sum assured
  3. At the end of the 3rd policy year before the maturity date – 15% of the sum assured
  4. At the end of the 2nd policy year before the maturity date – 15% of the sum assured
  5. At the end of the 1st policy year before the maturity date – 20% of the sum assured

At maturity, this plan offers a guaranteed maturity payout of 40% of the Sum Assured

If you choose the endowment option, you will receive a lump sum amount of 125% of the sum assured at maturity, provided the policy is in force.

In case of an unfortunate event of death of the life insured, the nominee will receive a higher of

  1. 110% of Sum Assured (Money Back option) and 125% of Sum Assured (Endowment option)
  2. 11X the base annualized premium

This plan has an inbuilt waiver of premium benefit option in case of death of the life insured, so the child can get the policy benefits.

Canara HSBC Smart Junior Plan

Canara HSBC offers you this investment plan for your girl child, where you will receive several benefits such as

  1. Guaranteed Annual payouts at the end of each of the last four policy years before the maturity year: 20%, 20%, 20% and 20%
  2. On survival till the maturity date, you will receive a Guaranteed Sum Assured equal to 20% of the Sum Assured along with Annual bonuses and Final bonus if any.
  3. In case of an unfortunate demise of the life assured, the insurer will pay a higher of:
  4. Sum Assured
  5. 10X Annualized Premium
  6. 105% of the Total Paid Premiums

Aditya Birla Sun Life Vision Star Plan

Aditya Birla Sun Life Vision Star Plan offers periodic payments during the policy term, 5 years after the premium paying term. You can choose your payout option from the following:

  1. Option A – 4 bi-annual payouts of 20%, 20%, 30% and 30%
  2. Option B – 5 annual payouts of 15%, 15%, 20%, 20% and 30%

The minimum entry age for parents is 18-55 years and the maximum maturity age is 75 years. In case of the life insured’s death during the policy term, a predetermined death benefit will be payable to the nominee. Whereas if the life insured survives till the end of the policy term, the insurer will pay the accrued bonus plus terminal bonus, if any.

Note: The policy shall be terminated once the maturity or death benefit is paid.

HDFC SL Youngstar Super Premium

HDFC SL Youngstar Super Premium is a united-linked insurance plan that secures the financial interest of your girl child with two flexible benefit options

  1. Save Benefit
  2. Save-n-Gain Benefit

If you choose Save Benefit, in case of unfortunate death of the parent or a critical illness diagnosis, a sum assured is paid to the beneficiary (child) plus the future premiums get waived off. And on maturity, the fund value is paid to the beneficiary. Whereas, in Save-n-Gain Benefit, on the death of the parent or a critical illness diagnosis, the sum assured is paid to the beneficiary and the insurer will pay 50% of the future premiums towards the policy and 50% of the premiums to the beneficiary on the premium due date. On maturity, the fund value is paid to the beneficiary.

Kotak Headstart Child Assure Plan

Kotak Headstart Child Assure Plan is a unit-linked child investment plan that comes in both limited and regular premium payment options. In case the life assured dies, the insurer will provide the following benefits:

  1. Basic Sum Assured to the nominee
  2. Waiver of future premiums
  3. The policy will continue and the Fund Value will be paid to the nominee on the maturity date.

This plan helps you build a corpus for your girl child for her overseas studies, marriage, etc.

On survival till the maturity date, you will receive the full Fund Value. You have the option to receive the maturity benefit in cash and the balance amount in installments for up to 9 to 5 years after the maturity date.

As you know the financial requirements of your child change from time to time, so Kotak Headstart Child Assure Plan provides you access to investments after completion of the 5th policy year through partial withdrawals.

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