Your children look towards you to support them physically, emotionally, and financially. Whether you have a son or a daughter or both, education is their birthright and it should be every parent’s prerogative to ensure their child’s future by making an investment in a children future plan.

The cost of education in India is on the rise, right from school fees to the costs of higher education like pursuing medicine or a masters course from any of the IIM’s. If you want to secure your child’s future, the best investment plan for kids is to invest in the best child insurance plan, and fulfil their dreams.

The Need for Child Insurance
Uncertainties are a part of life. As a parent, your biggest worry is what would happen to your children and their future when you’re not around. A prudent parent will start investing for the child right from the time the child is born. In fact, right from the time, you’re child is conceived, you should set aside a portion of your funds and invest.

A child insurance policy just does that. In today’s scenario, where every parent desires to give his child the best possible education, the high costs scare off many to the extent that parents start worrying as early as their child enters kindergarten.

By investing in a child education plan, you will be able lay the foundations of child’s education needs. Plus a child insurance policy can prove handy when your kids reach marriageable age.

Benefits of a Child Insurance Policy
- Unlike life insurance, where the policy terminates on death of the insured, a children insurance policy dons the role of a parent. Though the emotional loss is irreparable, you can have the satisfaction that you child will be well taken care of even after your death.
- The best part about a child insurance plan is the payouts when your child’s attains certain milestones.
- In the unfortunate event of your death, in addition to the lump sum payment at the time of death of the insured, regular payments will be made to your child.
- All future premiums are waived and the insurer take the onus on himself to keep the policy in force and all benefits due under the child education policy are made available to the child.

Best Children Insurance Plans in India

HDFC SL YoungStar Super Premium Plan
- This is a ULIP offering two insurance cover options.
- The plan is open to all between ages 30-60 years.
- It carries a minimum policy term of 10 years and a maximum of 20 years.
-You can choose to rotate your investments in four funds, each with different levels of exposure.
- In case of the policy holder’s death, regular payout is made to the family. On maturity, the child receives the fund value.

Bajaj Allianz Young Assure Plan
- A traditional savings plan, the entry level age is fixed between 18 to 50 years with maturity age of 60 years.
- Payouts from the plan are scheduled such that there is adequate cash to meet higher education needs, child’s marriage, and any other milestone events.
- You have the choice of three cash instalment options with special rates for women policyholders.

ICICI Pru Smart Kid Assure Plan
- This plan offers a choice of 8 funds, including equity, debt, and balanced funds to rotate your investment.
- The entry age is between 20 to 60 years. The premium due on the plan can be made as a one-time payment or spread over the tenure of the policy.
- Once 5 years have elapsed after taking the policy, you are allowed to make withdrawals.

Max Life Shiksha Plus Super
- The entry age of the plan is fixed at 21 to 50 years. The maximum maturity age is 65 years.
- The policy holder can choose from five options, each carrying varying risk levels. The insured, in keeping sync with their financial goals, can choose the plan term and premium.
- The plan also allows partial withdrawals and is also bound to pay you loyalty additions.

As the most prudent people will tell you, investing in a child future plan as early as possible is the best way to secure their future. Doing so will ensure that by the time your children reach an age when they want to go for higher education or want to get married, you have the funds to let them follow their dreams.

Author's Bio: 

Arwind Sharma is a financial advisor with an experience of more than 7 years. He has worked for topmost financial firms in India and has been a visiting faculty at many reputed institutes in India.