Best one-time investment plan for child
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Raising a child is not easy at all, especially when inflation is on the rise. This is why you need to start investing as soon as you become a parent. Wondering what plans you can invest your money into? The most sought-after option these days is a one-time investment plan. Wait! Before you go ahead with the best one-time investment plan for the child, you must however first try to understand what it is. Well, in that case, keep reading to know!
As the name suggests, a one-time investment plan for the child means you pay a lump sum amount one-time through a policy term. Along with the life cover, the money keeps growing. As the child grows, the investment plan will keep supporting the child in each of his or her milestones in life.
What is the importance of a one-time investment plan for the child?
There are many one-time investment plans for the child in India and all of them come with benefits. Before we discuss the advantages of one-time investment plans, let us discuss their significance.
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Education of your child
Education is one of the most important things that we can give to our children. And when we are planning a bright future for our child, we need to think about what may happen after 12 years. This is when a one-time child plan helps. Even if the fees charged by educational institutions get higher by then due to inflation, it will not impact your child’s education. The return you get will cover it all.
Also Know: 10 Best Child Insurance Plans in India
Important milestones
During the important stages of your child’s life, you can make partial withdrawals. This way you can be prepared for your child, whether it is their education or marriage.
Protection in times of uncertainties
The one-time investment plans work like a life cover as well. Even in an unfortunate event, you will have the assurance that your child is protected financially.
Advantages of a one-time investment plan
As the advantages of a one-time investment plan are concerned, here are some of them mentioned below:
- Life cover: One of the important advantages of this kind of policy is the life cover that is provided under it. Since the life is insured, the child has a financially secured future even in the eventuality of the loss of life of parents/guardians.
- Financial growth: The plan gives you the option of investing the money in your choice of funds such as debt, equity, or mixed. This ensures that your investments are inflation-proof.
- Tax savings: Under this kind of policy, the person is eligible for deduction of income tax under section 80C of the Income Tax Act, 1961. The deduction can amount to up to INR 1.5 lakhs annually for the premium paid. Also, the earnings under this policy on maturity are free from income tax under section 10D of the same act.
Best one-time investment plans for child
| Name of the plan | Entry age | Maturity age | Sum assured |
| Tata AIA Life Insurance Super Achiever | 25-50 years | 70 years | 10XAP |
| SBI Life – Smart Scholar | 18-57 years | 65 years | Limited Premium- 10 x AP Single-Premium- 1.25x Premium |
| Reliance Child Plan | 21-55 years | 65 years | INR 50,000 |
| SUD Life Aashirwaad | 18-50 years | 70 years | INR 4,00,000 |
| Shriram Life New Shri Vidya | 18-50 years | 70 years | INR 1,00,000 |
| Sahara Ankur Child Plan | 0-13 years | 40 years | For 10 years and below- INR 15 lakh For 11 years and above – INR 24.75 lakh |
| Aditya Birla Sun Life Child’s Future Assured Plan | 18-65 years | 75 years | Minimum- INR 4,00,000 |
| Aviva Young Scholar Secure | 21-50 years (Parent) 0-12 Years (Child) |
71 years | Death Benefit: Higher of (10 X Annualised Premium) or (105% of paid premiums) |
| Aegon Life Rising Star Insurance Plan | 18-48 years (Parent) 1 day-15 years (Child) |
65 years | Maximum Cover: For age less than 45 years – 18 x Annualised Premium For age above 45 years – 10 x Annualised Premium |
| Bharti AXA Life Child Advantage Plan | Regular: 18-50 years Limited:18-55 years |
Regular – 71 years Limited – 76 years |
Minimum – INR 25,000 |
| Canara HSBC Future Smart Plan | 18-60 years (child must be below 18 years of age) | NA | Below 45 years of age: For 10,15 and 20 years policy term – 10x AP 25 years policy term – 12.5x AP 45 years of age and above – 7x AP |
| Aegon Life Rising Star Insurance Plan | 18-48 years (Parent) 1 day-15 years (Child) |
65 years | Maximum Cover: For age less than 45 years – 18 x Annualised Premium For age above 45 years – 10 x Annualised Premium |
| Edelweiss Tokio Life Wealth Secure+ | Base: 0-50 years Life Partner: 18-50 years Child: 18-40 years |
Base: 18-70 years Life Partner: 23-55 years Child: 23-55 years |
Minimum: 7 x AP |
| Future Generali Assured Education Plan | 21-50 years (Parents) 0-10 years (Child) |
67 years | NA |
| Exide Life New Creating Life Insurance Plan | 18-45 years | 60 years | NA |
| HDFC Life YoungStar Udaan | Classic: For Aspiration – 30 days to 60 years For Academia and Career – 8 to 60 years Classic Waiver: 18 to 55 years |
Classic: For Aspiration- 18 to 75 years For Academia and Career: 23 to 75 years Classic Waiver: 33 to 75 years |
NA |
| IndiaFirst Life Little Champ Plan | 21-45 years | For 7-12 years: 65 years For 13-14 years: 70 years | Minimum – INR 1,50,000 |
| IDBI Federal Life Insurance Dream Builder Plan | 21-50 years | 72 years | INR 2,15,000 |
| ICICI Prudential SmartKid Solution | 20-54 years | 64 years | 7x AP |
| Kotak Headstart Child Assure | 18-60 years | 70 years | Minimum – Entry age < 45 yrs: Higher of (10 X AP) OR (0.5 X Policy Term X AP) Entry age >= 45 yrs: Higher of (7 X AP) OR (0.25 X Policy Term X AP) |
| LIC’s New Children’s Money Back Plan | 0-12 years | 25 years | Minimum – INR 1,00,000 |
| Max Life Future Genius Education Plan | 21-45 years | 66 years | For 8 pay Variant- INR 3,27,000 (min.) For Limited Pay Variant- INR 2, 12,000 (min.) |
| Pramerica Life Rakshak Gold | 18-60 years | 65 years | INR 75,000 |
| PNB MetLife Smart Platinum | 7-70 years | NA | NA |
3 Things to consider while making a one-time investment for a child
Here are some of the important considerations to be made while you are purchasing a one-time investment plan for your child.
- Addition of premium waver: One of the common waivers to these plans is the option to waive off the premiums. This facilitates the premiums of the policy to be waived off in the eventuality of the policyholder being passed away.
- Partial withdrawal option: Another useful feature to be added to these policies is the option to withdraw a partial sum from the fund. In case of any financial emergencies, you should be able to claim a partial amount from the total maturity fund.
- The earlier the better: Under these policies, the people who purchase them at an earlier stage have a clear advantage as they are able to have the maturity earlier and have the amount readily available for the higher education requirements of the child. You can also benefit by paying a reduced premium rate if you take the policy earlier.
Read More: What is a Child Insurance Plan and How do Child Plans Work?
To sum it up
A one-time investment plan can be very helpful for your child. You can rest assured that your child will not have to worry about finances even if you are not around.
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FAQs on One-Time Investment Plan for Child
Which investment plan is the best for children?
Best investment plans that you can buy for your children can be Canara HSBC Future Smart Plan, Edelweiss Tokyo Life Wealth Secure+ Future Generali Assured Education Plan, etc.
Which is the best scheme for a one-time investment?
Some of the best one–time investment schemes in India are Tata AIA Life Insurance Super Achiever, Sahara Ankur Child Plan, Bharti AXA Life Child Advantage Plan, Aegon Life Rising Star Insurance Plan, etc.
Is there a one-time investment plan for a child in the post office?
Yes, there are several one-time investment plans for a child in Post Office such as National Saving Certificate (NSC), Kisan Vikas Patra (KVP), Public Provident Fund (PPF), and Post Office Recurring Deposit Scheme (RD).
What are the investment schemes for a girl child in India?
For the girl child, the top schemes are Sukanya Samridhi Yojana, Post Office Time Deposit Account, and Post Office Savings Account.
What are the best investment schemes for a boy child in India?
For a boy child in India, you can buy investment schemes such as National Savings Certificate (NSC), Kisan Vikas Patra (KVP), Post Office Monthly Income Scheme (POMIS), and Public Provident Fund (PPF).
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