Child Education Plan
In India, the GER (Gross Enrollment Ratio) in higher education is about 30%.
Life CoverThis keeps the child’s education fund safe.
Partial WithdrawalsStarting from the 6th year.
Tax BenefitsGet tax deductions on premiums under Section 80C.
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In India, the GER (Gross Enrollment Ratio) in higher education is about 30%. It indicates lower enrollment of youngsters for higher studies. The main factor that leads to lower enrollment is insufficient funds for education. To maintain a good GRE and avoid financial inefficiency, it is always better to get a Child Education Insurance Plan.
Most of the insurance companies provide a child education plan that covers the educational expenses of your children. This education plan helps to study at the best institution without worrying about the money.
We will discuss everything about the Child Education Plan to understand it better.
What are Child Education Plans?
Child Education Plans are a smarter option that gives financial support for your child's education. These plans combine saving, insurance, and investment in one plan. You can plan to save and invest for your child’s future educational expenses.
You pay a fixed amount on a monthly, quarterly, or annual basis into the plan. When your child needs money for higher education or reaches a certain age, the plan gives a lump sum or regular payouts. One big benefit is that if something happens to you, the plan funds your child’s education. To enjoy these benefits, get your Child Education Plan online.
Key Features of Child Education Plans
Here are some of the key features of Child Education Plans:
| Feature | Details |
|---|---|
| Life Cover | If the parent passes away, the plan gives a lump sum to the insured. This keeps the child’s education fund safe. |
| Premium Waiver | If the policyholder (parent) dies during the term, the insurance company pays the remaining premiums. The plan stays active without burdening the family. |
| Partial Withdrawals | Starting from the 6th year.You can withdraw part of the money to cover education-related expenses.The remaining sum assured is paid at maturity along with the life cover benefit. |
| Tax Benefits | Get tax deductions on premiums under Section 80C.Tax-free payouts under Section 10(10D) of the Income Tax Act. |
| Flexibility | Choose to pay premiums monthly, quarterly, half-yearly, yearly, or as a lump sum. You can also set policy duration and payouts based on your child’s needs. |
| Riders | Add extra protection like critical illness, premium waiver, or accidental death riders by paying a small additional cost. |
| Loyalty Additions | Get bonus amounts at intervals for staying invested. These increase the maturity value and help grow your child’s education fund. |
| Wealth Booster | Some ULIP plans add extra units to your fund after a few years as a reward for regular payments. |
Things to Remember: In a Child Education Plan, the policyholder and the insured person are different. The policyholder is the person who purchased the policy, and the child is insured.
Types of Child Education Plans
There are mainly four types of Child Education Plans that you can purchase:
- 01
Child ULIP Plans (Unit Linked Insurance Plan)
Child ULIP plans combine life insurance and investment. In this plan, one part of the premium is used by the insurer for life cover, and the remaining part for equity, debt, or balanced funds. These plans help you grow your money through market-linked returns and build a strong education fund for your child.
- 02
Child Savings Plans
Child savings plans offer guaranteed returns and life insurance. You save regularly, and the insurer provides a lump sum or installments during your child’s education. These plans suit parents who prefer safety and want to avoid market risks.
- 03
Guaranteed Capital Solutions
Guaranteed capital plans give you life insurance and a fixed amount at maturity. These plans secure your child’s future with stable returns. This plan returns the principal amount irrespective of the market performance. In short, your initial investment amount is secured under this type of plan.
- 04
Guaranteed Return Plans
Guaranteed return plans let you save in a structured way and promise a fixed payout. You also get life insurance, so your child’s education stays protected even if something happens to you. These plans provide peace of mind with risk-free savings.
Why Is It Good to Buy Child Education Plans Early?
Buying a child's education plan early offers several key advantages that can benefit you and your child in multiple ways. Some of the benefits are as follows:
- 01
Money Grows with Time
When you start early, your money gets more time to grow through compounding. Even small, regular savings can become a big amount over time.
- 02
Easy on Your Budget
Paying smaller amounts from the beginning is easier than paying big premiums later to reach the same goal.
- 03
Stay Ahead of Rising Costs
Education costs increase with time. Early and smart investing helps your savings grow faster than inflation.
- 04
Protect Your Child’s Future
These plans include life insurance. If something happens to you, the plan still takes care of your child’s education.
- 05
Fulfill the Purpose
A child education plan helps you save regularly for a clear goal, keeping your financial planning on track.
Top Child Education Plans in India 2025
Here are some of the top child education plans that you can consider in 2025:
| Plan Name | Plan Type | Key Features |
|---|---|---|
| HDFC Life Youngstar Super Premium | ULIP | Combines investment and insurance; offers customization and a premium waiver on parents' death. |
| ICICI Prudential Smart Kid Solution | ULIP | Offers flexible investment, lump sum payout, loyalty additions, and wealth boosters. |
| Bajaj Allianz Young Assure | Traditional Savings Plan | Provides life cover, rider benefits, flexible premiums, and a higher sum assured rebate. |
| Max Life Shiksha Plus Super | ULIP | Helps build an education fund. It also includes family cover, fund options, extra units, and partial withdrawals. |
| LIC New Children Money Back Plan | Money-Back Plan | Pays survival benefits at ages 18, 20, and 22. It offers maturity benefit at 25, a premium rebate, and a loan. |
| AEGON Life Rising Star Insurance | ULIP | Offers regular premium payment, built-in premium waiver on death, and four fund options. |
| Bharti AXA Life Child Advantage | Non-linked Participating Plan | You can choose between money-back and endowment. It offers life cover with bonus benefits. |
| Aditya Birla Sun Life Vision Star Plus | Traditional Participating Plan | Pays regular amounts for education and offers life cover even if the parent is not around. |
| Kotak HeadStart Child Assure | ULIP | Helps create wealth through fund investments; includes life insurance for protection. |
Benefits of Child Education Plans
Here are some of the main reasons why you should buy the best child education plans:Covers Rising Education Costs
Education fees continue to increase every year. A child's education plan helps you save money for educational purposes. It ensures your child’s studies do not stop due to financial stress.
Builds a Strong Fund Over Time
When you invest regularly, your money grows in the long term. Starting early helps you build a large fund by the time your child needs it for school or college.
Offers Peace of Mind with Life Cover
These plans include life insurance, which supports your child’s education in your absence. You can be at peace of mind with this feature of the insurance plan.
Helps You Save on Taxes
You can claim deductions under Section 80C for the premiums you pay. The maturity amount is also tax-free under Section 10(10D), which gives you extra savings.
Gives You Flexible Options
You can choose how often to pay the premium, i.e, monthly, yearly, or as a one-time payment. You also decide how your child receives the money (in installments or a lump sum).
Reduces the Need for Loans
A good plan helps you to save enough so your child does not have to depend on education loans. This avoids future debt and keeps their journey stress-free.
List of Documents Required for Child Education Plans
Here is the list of documents you need to apply for a child education plan:
Application FormFilled proposal form
Identity ProofAadhar, PAN, DL (Driving License)
Income ProofSalary slips, income tax returns, or Form 16
Age ProofBirth certificate, Aadhaar card, passport, driving license, PAN card, voter ID, or a school certificate
Address ProofUtility bills (electricity, water, telephone), bank statements, Aadhaar card, or passport
How to Buy a Child Education Plan with Square Insurance?
To buy a child education insurance plan, follow the given steps:
- 1
Step
Visit the official website of Square Insurance.
- 2
Step
You will get the Child Education Insurance option.
- 3
Step
Enter the personal details required on the next page.
- 4
Step
Now get the available plan quotes.
- 5
Step
Select the plan as per your needs and budget.
Tips to Consider Before Buying Child Education Plans
To get the right child education plan, you should consider the following tips:
Buy Early
Buying the education plan for children is more effective if bought early. When you invest early, your money gets more time to grow. This helps you to match the rising costs and build a strong fund for your child’s education goals.
1Choose Investment Fund
Always choose the investment option along with savings to get better returns. Pick a child plan based on your comfort with risk. You can go for guaranteed returns or market-linked ones. Make sure the plan suits your budget, education goals, and offers flexible payment options.
2Get Premium Waiver
Always look for the plan that offers a premium waiver in case something happens to you. Even in the absence of the policyholder (parent), the policy will remain active. The insurer pays the premium with the Premium Waiver feature.
3Look for the Partial Withdrawal Feature
There are times when you may need the insured money for education. Some plans let you take out small amounts during the policy term. This is useful for short-term expenses like school fees, coaching, or study material.
4
How to Claim for a Child Education Insurance Plan?
To claim the insurance amount, you have to follow the steps below:
Inform the Insurance Company
Start by informing the insurance company about the claim, including the maturity or death benefit. You can do this by visiting their website, sending an email or SMS, calling their toll-free number, or going to the nearest branch.
Fill Out the Claim Form
Get the claim form and fill it with basic details like:Policy number and purchase dateMaturity date or date of the incident (in case of death)Cause of death (if applicable)Name of the nominee or beneficiary
Submit the Required Documents
Attach the following documents to the form:Policy Document Original copy of the child planMedical Records (for death claims) Death certificate, medical reports, prescriptions, lab resultsID Proof Aadhar card, PAN card, voter ID, passport, or driving licenseIncident-related Documents In case of unnatural death, include FIR copy and post-mortem report
Submit the Form and Documents
Submit the filled claim form along with all required documents to the insurance company. Cross-check the documents to avoid any delay later and get the resolution fast.
Verification and Review
The insurer will check all the documents and may investigate if needed. The insurance company appoints the surveyor to review the case.
Claim Settlement
Once everything is verified and the claim is approved, the insurance company will transfer the settlement amount directly to the nominee’s or beneficiary’s bank account. Finally, you are all set to get your claimed amount.
Why Is It Good to Buy Life Cover in a Child Education Insurance Plan?
Buying life cover in a child education insurance plan ensures your child’s future stays secure, even if something happens to you. It provides a premium waiver benefit, so the insurer continues the policy and pays the remaining premiums.
Your child still receives the full maturity amount as planned. This gives you peace of mind and protects your child from financial stress. It is a smart way to combine life protection and long-term savings in one simple, reliable plan.
To Sum Up
A child education plan is a smart way to secure your child’s future. As the cost of education is increasing with each passing year, it becomes vital to get financial support for the same. It helps you save money over time and be ready for the high cost of education.
With the right plan, parents can give their children the chance to follow their dreams without worrying about money. Starting early and choosing the right plan ensures that your child gets the best support for a bright and successful future.
FAQs
A Child Education Plan is a financial tool that helps parents save and invest for their child’s future education needs. It offers life cover and maturity benefits to ensure education continues even in uncertain times.
Child Education Plans help you stay prepared for rising education costs, provide financial security, and ensure uninterrupted education for your child in case of any unfortunate event.
The earlier, the better. Starting early gives your investments more time to grow and reduces the financial burden later.
Yes, many insurance companies allow you to buy a Child Education Plan Online, making the process simple, quick, and transparent.
Yes, premiums paid towards the plan may qualify for tax deductions under Section 80C, and maturity benefits may also be tax-exempt under Section 10(10D) of the Income Tax Act.
Some of the Top Child Education Plans in India 2025 include HDFC Life YoungStar Super Premium, ICICI Prudential Smart Kid Solution, LIC New Children’s Money Back Plan, Max Life Shiksha Plus Super, and many more. These plans offer a mix of savings, investment growth, and life cover to support your child’s education at every stage.