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- Child Insurance Plans
- What are Child Education Plans?
- Why Child Eduction Plan is must?
- Best Child Education Plans in India 2025
- Why Invest in Child Plans?
- Features of Child Plans
- Benefits of Child Education Plans
- Types of Child Plans
- How do Child Plans works?
- How much to Invest in Child Plans?
- How to Select the Right Child Education Plan?
- Claiming Process
- Documents
- Tips for Buying Child Education Plans
- Early Planning for Child's future
- TaxAdvantages
- WhatisLifeCover
- WhychooseHDFC
- Child Insurance Plan FAQ's
- Disclaimer
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Flexible payout options
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Valuable financial protection for your child
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Flexible Benefit Payment Preferences
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What Are Child Education Plans?
A child education plan is a financial product designed to help parents systematically save and invest for their child's future educational needs. It provides life insurance coverage to protect the child's future even in the sad case of the parent's passing and builds a corpus for further education.
The premium waiver benefit is one of a child education plan's most notable characteristics. The insurer guarantees the policy's continuous continuation by waiving all subsequent premiums in the event that the covered parent dies within the policy's term. This implies that the family has no financial strain, and the youngster continues to get the maturity advantages as scheduled.
Depending on the parent's convenience, these plans provide multiple premium payment choices, including monthly, semi-annual, yearly, or one-time payments. The money might be paid out in full at maturity or in instalments at various points during the child's academic career.
More significantly, these programs are designed to support your child's unrestricted pursuit of high-quality higher education at reputable universities. By investing early, parents may benefit from market-linked gains and long-term compounding (in ULIPs), guaranteeing sufficient cash for when it counts most.
Why Do You Need a Child Education Plan?
Before you know it, your child will be ready to take on the world—and a quality education plays a massive role in shaping that journey. A child education plan helps you financially prepare for key milestones while offering protection and returns. Here's how it helps:
Urgent Help for Financial Emergencies
A child education plan might serve as a safety net in the event of unforeseen financial difficulties. The life cover guarantees that the child's educational path will continue uninterrupted in the event of the parent's untimely death.
Addressing Increasing Education Costs
The cost of education is increasing at a fast rate each year. By building up money over time, a child education plan helps you keep ahead of inflation and ensures you can support your kid's aspirations without worrying about rapidly rising expenses.
Using Collateral to Secure Education Loans
Some child education programs may be pledged as security when qualifying for an education loan. This makes it simpler for parents to get money when they need it, particularly for study abroad programs or further education at prestigious colleges.
Safeguarding Your Child's Future
By making a child education plan, you are safeguarding your child's future, even if life takes an unexpected turn. These programs guarantee ongoing assistance for the child's objectives.
Investment Returns
These plans provide significant investment returns and financial security. Depending on the plan, savings-based or ULIPs, you may match your investments with your child's academic achievements and develop them gradually.
Best Child Education Plans in India 2025
Securing your child's future requires careful financial planning paired with smart investments. To understand the best child education plan that you can invest in 2025 to secure your child’s future, read below:
Sukanya Samriddhi Yojana (SSY)
a. Lock-in Period– Until the girl child reaches 21 years or upon marriage after reaching 18 years
b. Investment Type– Government-backed small savings scheme
c. Returns– 8.2% per annum, compounded yearly
d. Tax Benefits– Up to Rs. 1.5 Lakhs under Section 80C# of the Income Tax Act,1961
Unit Linked Insurance Plan (ULIP)
a. Lock-in Period– 5 years
b. Investment Type– ULIPs are essentially life insurance plans that offer market-linked returns along with life cover
c. Returns– Depends on market Conditions
d. Tax Benefits– Up to Rs. 1.5 Lakhs under Section 80C# of the Income Tax Act,1961 and maturity proceeds are tax exempt under Section 10(10D)##subjected to prescribed conditions
Endowment Plan
a. Lock-in Period– 2 years
b. Investment Type – Endowment policy is a combination insurance and guaranteed savings scheme
c. Returns– Usually depends on the terms and conditions of the policy.
d. Tax Benefits– Up to Rs. 1.5 Lakhs under Section 80C# of the Income Tax Act,1961 and maturity proceeds are tax exempt under Section 10(10D)## subjected to prescribed conditions
Savings Plan
a. Lock-in Period– Usually 5 to 10 years, depending on the tenure of the savings plan
b. Investment Type– Traditional life insurance plan
c. Returns– 4% - 6%
Tax Benefits– Up to Rs. 1.5 Lakhs under Section 80C# of Income Tax Act, 1961 and maturity proceeds are tax exempt under Section 10(10D)## subjected to prescribed conditions
Mutual Fund
a. Lock-in Period– No lock-in period
b. Investment Type– Market-linked insurance scheme
c. Returns– Usually vary according to fund type
d. Tax Benefits– Up to Rs. 1.5 Lakh deduction under Section 80C# of the Income Tax Act,1961
Note - It is essential to note that the total deduction available under section 80C# of the Income Tax Act, 1961, considering all the above investments allowed under this section should not exceed Rs.1, 50,000 per year. Individuals and HUFs are both eligible for Section 80C# deductions if they have opted for Old Tax Regime.
List of Child Insurance Plans in India Offered by HDFC Life
Securing your child's future is one of the most crucial financial decisions you can opt for. With the gradually rising costs of education, selecting the child insurance plans ensures fulfilling your child's dreams and makes sure to safeguard it during your absence.
HDFC Life provides some of the top child insurance plans in India, which is a combination of savings and life coverage, enabling you to build a strong financial foundation for the future of your child. These plans are well designed to support your child's future goals – be it marriage, higher education or other goals.
The table below showcases some of the child insurance plans options:
Plan Name |
Type |
Key Benefits |
Best For |
HDFC Life Click 2 Wealth (UIN: 101L133V03) A Unit Linked Non-Participating Individual Life Insurance Savings Plan |
ULIP |
Wide variety of fund options, comprehensive life coverage, no allocation charges, market-linked returns |
Creation of wealth for a child in the long term |
HDFC Life Click 2 Achieve (UIN: 101N186V05) An individual non-participating, non-linked savings life insurance plan |
Savings Plan + Life Insurance |
Comprehensive life coverage, flexible options of payout for children, guaranteed benefits |
Providing security to child’s educational goals |
HDFC Life Sampoorn Nivesh Plus (UIN: 101L180V01) A Unit Linked Non-Participating Individual Life Insurance Savings Plan |
Market Linked Returns + Life Insurance |
Multiple options for funds, comprehensive life coverage, loyalty additions |
Balanced savings and career goals |
Why Invest in Child Plans?
Investing in a child insurance plan helps you systematically build funds for your child’s future needs, such as education, marriage, or other life goals. These plans offer the dual advantage of life insurance protection and disciplined savings ensuring your child’s dreams are not compromised even in your absence. Regular contributions help create a well-planned financial roadmap for your child’s key milestones.
What are the Triple Benefits of a Child Insurance Plan?
Here are the three significant benefits of a child insurance plan that thereby make it an innovative tool for securing the future of a child:
Life Coverage
A child insurance plan offers vital life insurance, guaranteeing that the child's financial future is protected even in the regrettable case of the policyholder's passing. This coverage provides much-needed financial stability and peace of mind during emotionally taxing periods by ensuring that the child's education and other long-term objectives are unaffected.
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Premium Waiver
The premium waiver feature guarantees that the insurer will pay all subsequent premiums if the policyholder dies within the policy's term. The child is able to receive the anticipated financial help because the policy remains in effect. This advantage guarantees that unanticipated circumstances will not compromise the child's aspirations.
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Maturity Benefit and Monthly Expenses
The child gets a lump sum maturity benefit at the end of the policy term to aid with milestones like marriage or further education. Certain child insurance policies provide monthly reimbursements that ensure a balanced and continuous upbringing, offering consistent financial assistance to handle continuing living or educational costs.
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Features of Child Insurance Plans
Here are some of the features of child plans:
Life Cover
If something happens to you, the policy will give a lump sum of money to the people you choose. This ensures that your children's education fund remains secure and they can continue their studies without financial worries.
Premium Waiver
If the policyholder dies unexpectedly during the policy term, the insurance company will pay all the remaining premiums. This ensures that the policy stays active, and the child's future, especially their education, remains secure without any interruptions in premium payments.
Partial withdrawals
The child insurance plans allows partial withdrawals starting from the 6th year (after 5 years). This flexibility helps cover important educational expenses like admission fees, tuition costs, and educational trips.
Sum assured
After partial withdrawals, you will get the remaining balance of the sum assured when the policy matures, in addition to life cover
Tax benefits
You can also be eligible for tax benefits under section 10(D)# and deductions under 80C# of the Income Tax Act. The amount of premium paid toward the policy will be eligible for a tax deduction, hence reducing your overall tax liability.
Flexibility
One of a child education plan's most crucial components is its adaptability. Monthly, quarterly, half-yearly, annual, or one-time lump sum premium payments are among the flexible options available under these policies. In accordance with the child's academic schedule, parents may also select policy lengths and payout schedules. This adaptability ensures greater control over savings and returns by assisting in coordinating financial planning with significant academic achievements.
Riders
Plans for child education frequently include optional riders that improve the policy's protection features. These include premium waiver riders, riders with serious illnesses, and riders with accidental death benefits. Parents can significantly increase their child's financial security by making a small supplementary payment. Riders provide additional protection in the event of illness or other life events, guaranteeing that the child's education will continue to be funded.
Loyalty Additions
Many insurers provide loyalty benefits as a way to reward policyholders who remain engaged over longer periods of time. These are bonus sums that are either added to the insurance on a yearly basis or at predetermined intervals. The maturity value is increased by loyalty additions, which raises total returns. Parents may maximise their child's education investment plan and build up a more significant education corpus by remaining invested over the long run.
Wealth Booster
After a certain number of years, many kid ULIPs offer unique rewards known as wealth booster enhancements. By adding extra units to the investment fund, these boosters raise the policy's worth without raising the expense. Long-term dedication and regular premium payments are rewarded. This feature dramatically increases the policy's fund worth, assisting parents in covering the rising cost of providing their kids with a high-quality education.
Benefits of Investing in a Child Education Plan
Investing in a child education plan ensures you're financially prepared to support your child's educational goals. Here are the main benefits:
Future Security
Even in the event of your death, a child education plan ensures your child's future. It offers guaranteed payouts to fund educational requirements and a life insurance policy. The premium waiver benefit guarantees that the insurer will pay future premiums in the event of your untimely death, leaving your kid to receive the maturity amount. This ensures continuous access to high-quality education.
High Returns
Over time, you may build up a sizable corpus with the aid of market-linked returns offered by some child education plans, particularly ULIPs. Compounding and diligent contributions benefit you when you have extended investment horizons. This makes it possible for parents to balance risk and return while gradually increasing their investments, eventually guaranteeing that their child will have enough money for college when the time comes.
Flexible cover
Child plans provide freedom in selecting the insurance term, benefit payout schedule, premium payment frequency, and sum guaranteed. The plan may be tailored to your child's academic path, regardless of whether you want a single sum payment or payments spaced out at various educational levels. This flexibility ensures efficient planning for school, college, and beyond by allowing you to customise the insurance to your financial objectives.
Protection Against Inflation
The expense of education is rising quickly, so what appears adequate now could not be enough later. Your funds increase over time with the aid of child education plans, especially those that give market-linked returns. By outpacing inflation, this growth makes sure your child's education fund is sufficient even as living expenses and tuition costs at prestigious Indian or international schools climb.
Regular Saving
Plans for child education encourage the practice of consistent, disciplined saving. You may progressively accumulate a sizable fund without straining your budget by committing to a set premium over an extended period of time. This gradual accumulation helps you maintain long-term goals by fostering financial discipline in your daily life and ensuring that your child's aspirations are not jeopardised.
Tax Advantages
Plans for child education life insurance provide tax advantages in accordance with current legislation. Section 80C# of the Income Tax Act allows for the deduction of premiums, while Section 10(10D) ## may provide for tax-free maturity benefits. With these benefits, the plan is a tax-efficient method to provide financial security and peace of mind for your child's future.
Types of Child Plans
Here are the key types of child plans that you can consider for your children's future:
Child ULIPs
Investment opportunities and life insurance were integrated into Child Unit Linked Insurance Plans (ULIPs). The remainder of your payment is invested in debt, equities, or balanced funds, with a part going towards life insurance. These plans are perfect if you wish to increase your investment for your child's future through market-linked returns. Child ULIPs are an effective investment strategy for your child's academic objectives since they give you financial stability and assist you in creating a high-value education fund.
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Child Savings Plan
A child savings plan provides life insurance and guaranteed maturity benefits to protect your kid's future. These programs benefit parents who choose safety above market risks since they emphasise disciplined saving with guaranteed returns. The maturity money may be paid to you in one payment or in instalments throughout your schooling. These plans are dependable for long-term school savings since they include built-in premium waivers that guarantee your child's goals are safeguarded even when you are not around.
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Guaranteed Capital Solutions
These are non-participating, non-linked kid plans that provide life insurance and guaranteed capital at maturity. These programs, which are perfect for parents who are risk averse, ensure that the child will get a certain amount regardless of market conditions. You may securely make plans for your child's future milestones, including college. Guaranteed capital solutions are intended to safeguard your child's future by offering stability and predictable returns, both of which are essential for handling upcoming educational costs.
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Guaranteed Return Plan
Parents may save methodically with a guaranteed return plan that guarantees a certain payment at maturity. These plans are perfect if you want to finance your child's school or college education and are searching for steady, risk-free earnings. In addition to providing life insurance, the plan ensures that your child will get the guaranteed sum even in the event that you are not there. With no exposure to market fluctuations, this safe child education savings plan offers peace of mind.
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How Do Child Plans Work?
Let us take an example to understand how a child plan works:
Mr Mukherjee, a parent of a 5-year-old, plans to start investing in his son's higher education abroad. He is paying a monthly premium of Rs. 8,000 for 15 years.
Note: ROI is 21%
Let’s consider two different scenarios to understand how the payout would work.
Situation 1: Mr Mukherjee out-lives the policy term
In such a scenario, Mr Mukherjee will receive a sum assured of Rs. 1.1 crore (approx.) at the end of the policy tenure and now it can be used for higher education of his son.
Situation 2: Mr Mukherjee dies on the 8th year of the policy term
In this situation, Mr Mukherjee's child and other nominees will receive a lump sum amount as life cover and the remaining premiums will be waived off. The nominees can also make partial withdrawals from the child insurance plan for the child's educational purpose based on the type of policy chosen.
How Much Should You Invest in a Child Plan?
The cost of education is increasing at a rapid pace, which makes child plans more relevant than ever. According to a recent study, it was identified that the average cost of education from primary classes to post-graduation was Rs. 8,331 per year for a student. However, this study was conducted considering all the types of schools and colleges available across the country. We know that the cost of private schools and colleges is way more than government-owned institutions.
Moreover, the cost of professional courses such as engineering can be more expensive and the cost of some business school courses can become even more expensive, hence based on the desires and interests of the child you will have to plan for a sufficient sum assured.
How to Select the Right Child Education Plan?
The aim of buying a child education plan is to ensure financial security for children even when you are not around. But do you know what to look for in the best child education plan for optimum benefit? Here are some factors to consider while purchasing education savings plans.
Multiple Benefits
Various benefits such as life cover, the option to grow your money by investing in market-related assets, riders such as critical illness riders, accidental death benefit riders, waiver of premium riders, etc., are provided in some child education insurance plans. Look for these multiple benefits in the plan you propose to buy.
Options for Partial Withdrawal
What if you face a financial crisis before the maturity of the child's education plan? A part withdrawal facility will come in handy during such circumstances. The option for part withdrawal at regular intervals makes it easier to manage the rising education costs at different stages.
Reputation of the Insurance Company
The reputation of the insurance company in terms of reliability and providing financial security to your children whenever needed is paramount when buying a child plan. While considering the reputation of the insurer, focusing on the claim settlement ratio is vital as it speaks of the company’s credibility in settling claims without much hassle.
Flexible Plans
Choosing the best child plan that offers high coverage for low premiums is important to be within your budget. Flexibility in premium payment frequency is also important. Look for a plan that has multiple premium payment options i.e., monthly, quarterly, half-yearly, or yearly.
Investment Choices
A child insurance plan with investment choices that help grow your money will help beat the inflation rate and provide for your child’s education at a later date. Plans that offer multiple investment choices like equity, debt, hybrid funds, etc., that align with your financial goals and risk tolerance are the best options.
What is the Claiming Process for Children Insurance Plans?
The child plan claim process is simple. The steps to follow are:
Notifying the Insurance Company
Whether it is to claim maturity benefit or death benefit, inform the insurance company. It can be done by accessing the company’s website, sending an email or SMS, calling their toll-free number, or visiting their branch.
Documentation
Claim Form
Fill out the claim form with the following details:
Details of the Child Education Plan
Policy details such as number, date of purchase, and maturity date
Date of the incident and cause of the incident in case of a death benefit
Nominee/beneficiary’s name
Policy Document
Provide the policy document
Medical Records
In case of a death claim you should enclose the following medical records:
Death Certificate
Medical Certificates
Prescriptions
Lab Reports
Proof of Identity
Enclose any one of the following identity proofs:
Aadhar Card
Voter’s ID Card
Driving Licence
PAN
Passport
Incident-related Documents
In case of unnatural death, the following documents will be required:
FIR copy
Post-mortem report
Submitting the Documents
Submit the relevant documents along with the child plan claim form
Verification and Review
On receiving the claim form along with the documents the insurer will conduct an investigation and verification of the incident. The company will appoint a surveyor wherever necessary.
Claim Settlement
After the investigation and verification are done and the claim is approved, the claim settlement amount is credited to the beneficiary/nominee’s account.
List of Documents Required for Buying Children's Insurance Plans
Listed below is the list of documents required to avail a children's insurance plan:
Proposal form
Identity proof (passport, voter ID card, Aadhaar, driving licence)
Age proof
Income proof
Tips to Consider While Buying the Best Child Education Plan:
You can consider the following tips while purchasing the best child education plan:
Starting Early
Your investment has more time to grow if you start early. This keeps up with inflation and increases your child's education fund, so you will be ready for significant academic milestones like college or studying abroad.
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Avail an Investment Based on Your Requirements
Depending on your risk tolerance, select between guaranteed returns or market-linked options. Adapt your child's investing strategy to your present financial situation, future educational objectives, and the degree of flexibility you require in premium payments and rewards.
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Check for Premium Waiver
Make sure the plan provides a benefit that waives premiums. In the event of your death, your kid will still get the maturity amount, and the insurer will cover future premiums. This ensures that they will continue to get financial aid for their school even if they are not there.
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Check for the Partial Withdrawal and Feature
Partial withdrawals are permitted under some plans during the policy's duration. This option is helpful when you need money for short-term educational costs like study materials, coaching programs, or school applications without compromising the overall maturity advantage.
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How Early Planning for Child Education Can Benefit Your Child’s Future?
Early planning for your child's future, especially related to their education, is significant, and the reasons are discussed below:
More Savings over Time
Compounding will work in your favour for as long as possible if you start early. By the time your child is ready for college, even modest early contributions may add up to a sizable corpus, guaranteeing your financial readiness.
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More Time to Find Better Options
If you start preparing early, you can conduct an in-depth study and choose the best child education plan that fits your objectives. This enables you to assess the returns, compare various programs, and make long-term decisions based on knowledge.
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Secures Your Child’s Future and Reduces Your Stress
If you start early, you will not be in a financial bind when your child's schooling begins. When you have enough saved, you can stop worrying about money and concentrate on helping your child succeed academically.
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Inculcate Financial Responsibility
In addition to protecting your child's future, early preparation teaches them the value of investing and saving. By including kids in the process, you may help them understand the importance of financial planning and instil a sense of responsibility.
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Tax Advantages of a Child Education Plan
Under Section 80C of the Income Tax Act, 1961, the premiums paid for a Child Investment Plan qualify for a tax deduction of up to ₹1.5 lakh per financial year, subject to conditions.
Additionally, under Section 10(10D), the maturity benefits of the plan are tax-free if the annual premium does not exceed:
- ₹2.5 lakh for ULIPs (Unit Linked Insurance Plans)
- ₹5 lakh for non-ULIP child investment plans
These tax benefits apply throughout the policy tenure and remain tax-exempt upon policy completion or in case of the parent's demise, subject to conditions.
Sections of the Income Tax Act, 1961# |
Tax Benefits under the Child Education Plan |
Section 80C |
- Premiums paid under this plan are eligible for tax deduction upto Rs. 1,50,000 subject to conditions specified. |
Section 10 (10D) |
- Enjoy tax-free maturity with your child plan, with an annual premium of up to Rs. 2,50,000 for ULIPs or Rs 5,00,000 for other than ULIPs subject to conditions mentioned.
- Tax-free benefits are received on death . |
Discover more about the deduction under 80C for the best child education plan.
What is Life Cover and Why It's Important in Child Plans?
Life cover, also known as life insurance or life assurance, is a contract between an individual and an insurance company. The individual pays regular premiums, and in return, the insurer promises one to pay a specified lump sum, known as the sum assured, to the policyholder's designated beneficiaries upon their death during the policy term. This financial payout supports the family, helping them cover expenses like funeral costs, outstanding debts, and daily living costs, ensuring economic stability after the policyholder's passing.
Following are the reasons why life cover is essential in a child's plans:
Secure your child's financial future
A child's education life insurance plan includes life cover, which provides financial security if something happens to the parent. The insurer pays a lump sum or continues the policy, ensuring the child still receives the promised benefits and helping them pursue their education without financial hurdles.
Life insurance, which offers financial stability in the event of a parent's death, is included in child education life insurance plans. The insurer either pays a lump payment or extends the policy to guarantee that the kid continues to get the promised benefits and may continue their education without facing financial obstacles.
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Peace of mind for you
Knowing that your child's education is covered financially gives you peace of mind. You don't have to be concerned about how their future will be handled without you when you have life insurance. A carefully considered child education plan guarantees consistency and stability throughout your kid's academic career.
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Cost-Effectiveness
Plans for child education insurance that include life insurance provide long-term protection at reasonable prices. It is cost-effective for parents since you get savings and insurance protection in one package. More value is added by the premium waiver option, which guarantees ongoing advantages without gradually raising your financial burden.
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Why choose HDFC Life’s child insurance plan?
HDFC Life's top-selling Child Plan can be your best child insurance plan of choice for several reasons. These reasons may vary based on your individual financial goals, risk appetite, and preferences. Here are some potential reasons why you could consider this child education plan.
Comprehensive Protection
This plan offers comprehensive Life Insurance coverage. Such child education insurance plans also offer riders for extra protection, such as critical illness and accidental death benefit. These riders ensure financial security for the policyholder and their family in case of an unfortunate event.
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Wealth Accumulation
The plan provides for wealth accumulation through systematic investment in various HDFC Life funds. The choice of investment funds varies based on individual risk appetite and goals. This allows policyholders to grow their wealth with significant returns on investment in the long-term.
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Flexibility
HDFC Life’s Child Plan policyholders experience flexibility in terms of premium payment options and choice of funds. They are also flexible when it comes to switching between funds based on market fluctuations or investment goals. This flexibility allows policyholders to tailor their investment strategy based on their growing and changing financial needs.
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Child Education and Marriage Expenses
This plan is customised to help policyholders’ parents save money and accumulate funds for their child’s education or marriage. It ensures that parents have the right amount of funds to support key expenses in their children’s lives.
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Tax Benefits
The HDFC Life Child Plan is one among many insurance plans to offer tax benefits under Section 80C of the Income Tax Act, 1961#, on premiums paid. Also, the maturity proceeds can be considered tax-free under Section 10(10D) of the Income Tax Act, subject to satisfying the conditions. This feature makes it the best child plan which is also a highly effective tax-oriented investment option.
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FAQ's on Child Education Plan
1 What are the best Child Insurance plans?
The best child insurance plan is the one that caters to your child's financial needs the best. Here are some of the child insurance plans you should consider:
1. Sukanya Samriddhi Yojana (SSY)
2. Unit Linked Insurance Plan (ULIP)
3. Endowment Plan
4. Mutual Fund
5. NPS Vatsalya
2 How can I buy a best child insurance plan online?
Purchasing a best child insurance plan online is quite easy and simple. Simply visit the HDFC Life home page. From the navigation bar, go to "Investment Plan" and click on 'Child Plan’. Then from the interface choose the plan as per your requirement and click on ‘Buy Now’ to initiate your purchase.
3 What is the eligibility to buy a child insurance plan?
The eligibility criteria to buy a child plan are- the child must be an Indian citizen, the parents or the legal guardian must be an Indian citizen and there are age criteria which vary from plan to plan and insurer to insurer.
4 What are the tax benefits of children's education plans in India?
There are two types of tax benefits you can enjoy- firstly you will be eligible for tax deductions on the amount of premium paid of up to Rs. 1.5 lakh under Section 80C of Income Tax Act 1961#. Moreover, up to Rs. 2.5 lakh per year is exempted from tax on the life cover or sum assured amount received from the insurer u/s 10(10D).
5 What are the government plans for child education in India?
Some of the top government policies for child education in India are the Sukanya Samriddhi Yojana, CBSE Udaan Scheme, Dhanlaxmi Yojana, Balika Samriddhi Yojana etc.
6 Can I customize a child plan as per my specific requirements?
Yes, you can customise a child plan based on your own requirements which can be factors like pay-out structure, policy term, premium amount and other perks aligning with your child’s requirements.
7 What is the importance of investing in a child plan?
There are several important reasons for investing in a child plan which are- funding higher education, using this policy as collateral during financial constraints, partial withdrawal for medical treatment of the child and tax benefits.
8 When can one withdraw money from child plan?
One can withdraw money from a child education insurance plan only when it matures. Otherwise, only partial withdrawals are possible. The amount of these varies based on the selected plan. Usually, after five years since policy inception, policyholders can withdraw a maximum of 20% of the fund value without paying any fee or penalty. Also a Lump sum partial withdrawal from the fund is allowed after completion of five policy years, provided the life assured is at least 18 years of age. Partial withdrawal before completion of policy years would result in termination of the policy.
9 Is child plan tax free?
Child plans are subject to tax benefits on death or maturity claim profits under Sec 10(10D) of Income Tax Act, 1961#. The premiums paid towards insurance plan are also eligible for tax deduction under Section 80C. Benefits are applicable as per prevailing tax laws
10 When to buy a child plan?
There is no right time to buy a child plan. You should buy it when you are ready and the earlier the better. According to experts, it is ideal to begin a child plan within 90 days of the child's birth as you don’t want to miss out on the compounding effect. The sooner parents start a child insurance plan, lower is the risk and they stand to make better returns.
11 How will child plan secure your child's future?
Child plans are investment cum insurance plans that help to plan your child's future financial requirements by accumulating money over a period of time. On maturity, a lump sum amount is paid to the child to cover their education or marriage expenses.
Child plans come with Waiver of Premium (WoP) feature which is applicable if the parent dies in a stipulated period. In case of an unfortunate demise, the sum assured is paid to the nominated beneficiary, while the insurance company continues to pay the due premium for the remaining policy term. Upon maturity of the policy, the child stands to receive the maturity amount as mentioned.
You can withdraw money from the child plan during the tenure of the investment. This money can be used for any medical emergency that might arise for the child and reduce the finanaical burden on the family.
Parents can take the right step in fulfilling their responsibility in securing their child’s future by investing in a child plan.
12 What is child life coverage?
Child life coverage refers to the decided upon amount that the nominee receives in case anything happens to the policyholder during the policy term.
13 Can I purchase a child insurance plan for my 15-year-old child?
Yes, you can purchase a child plan for your 15-year-old child. However, when it comes to investments, the earlier you start the better.
14 What is the difference between a nominee and a beneficiary?
In a child plan, the nominee refers to the person who will help look after the child and the policyholder’s financials if anything happens to them during the policy term. The nominee is responsible for ensuring that the money goes to the intended individual. The beneficiary is the child or the individual who should receive the payout from the policy. In certain situations, the nominee and beneficiary can be the same.
15 Why is beneficiary or nominee important in a child plan?
The beneficiary is the individual who receives the payout from the policyholder or parent. Parents must ensure that their beneficiary is somebody who can handle the responsibility of receiving the child plan benefits. If not, they should appoint a responsible nominee.
16 What are the Documents Required to Buy a Child Insurance Plan?
The documents required to buy a Child Insurance Plan include - proof of age, proof of identity, proof of income, proof of address, and the proposal form.
17 How to calculate child education allowance?
A child education planner will be very useful for determining how much a parent needs for his child’s education allowance. It takes inflation, changing lifestyles, and the child’s growing needs into account to arrive at a correct figure.
18 How to select a child education plan?
A child education insurance plan is generally chosen based on the child’s age and the number of investment years. You can also decide whether you want child ULIPs (unit-linked life insurance plans) or guaranteed plans. Factor in the payout method, associated costs, past performance of the plan, and the claim settlement ratio before you select a plan.
Here's all you should know about Child Investments.
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1. Provided all due premiums have been paid and the policy is in force.
#As per Income Tax, 1961. Tax benefits are subject to changes in tax laws. Tax benefits & exemptions are subject to conditions of the Income Tax Act, 1961 and its provisions. Tax Laws are subject to change from time to time. Customer is requested to seek tax advice from his Chartered Accountant or personal tax advisor with respect to his personal tax liabilities under the Income-tax law.
The Unit Linked Insurance products do not offer any liquidity during the first five years of the contract. The policyholders will not be able to surrender or withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of fifth year.
^. Save 46,800 on taxes if the insurance premium amount is Rs.1.5 lakh per annum and you are a Regular Individual, Fall under 30% income tax slab having taxable income less than Rs. 50 lakh and Opt for Old tax regime.
## Subject to conditions specified u/s 10(10D) of the Income tax Act, 1961.
HDFC Life Sampoorn Nivesh Plus (UIN: 101L180V01) is a Unit Linked Non-Participating Individual Life Insurance Savings Plan.
HDFC Life Click 2 Wealth (UIN: 101L133V03) is a Unit linked Non- Participating Individual Life Insurance Saving Plan. Life Insurance coverage is available in this product.
HDFC Life Click 2 Achieve (UIN: 101N186V05) A Non-Linked, Non-Participating, Individual, Savings Life Insurance Plan Life Insurance Coverage is available in this product.
Unit Linked Insurance products do not offer any liquidity during the first five years of the contract. The policyholders will not be able to surrender/withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of fifth year.
Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions.
HDFC Life Insurance Company Limited is only the name of the Insurance Company, The name of the company, name of the contract does not in any way indicate the quality of the contract, its future prospects or returns. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document of the insurer. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.
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