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9 July 2025

Top 10 Child Investment Plans

Top 10 Child Investment Plans

As a parent, ensuring your child’s financial future is a top priority. With education costs soaring at 10-12% annually and inflation projected at 4-5% in 2025, choosing the right child investment plan is crucial. These plans blend life insurance with wealth creation, offering security and growth for milestones like education and marriage. This blog dives into the top 10 child investment plans to help you make informed choices.

Top 10 Child Investment Plans for 2025

Based on  data for FY 2024-25, here are the top 10 child investment plans in India, selected for their features, returns, and reliability.

1. SBI Life Smart Scholar

SBI Life Smart Scholar

Type: Unit Linked Insurance Plan (ULIP)
Key Features:

  • Nine fund options for market-linked returns.
  • Premium waiver benefit ensures policy continuity.
  • Partial withdrawals allowed after 5 years.
  • Maturity benefit includes fund value for education/marriage.
  • Tax benefits under Sections 80C and 10(10D).

Why Choose It?
Ideal for parents seeking high returns through equity/debt funds. Flexible premium payment (monthly, quarterly, yearly) and loyalty additions boost returns.

Premium Example: Rs. 18,000/year for Rs. 4 lakh sum assured (25-year-old parent).

2. HDFC Life YoungStar Udaan

HDFC Life YoungStar Udaan

Type: Participating Limited Premium Plan
Key Features:

  • Life and Life & Health options with critical illness cover.
  • Save or Save-n-Gain benefit for guaranteed or fund-based payouts.
  • Flexible premium payment (single, monthly, yearly).
  • Tax benefits under Sections 80C and 10(10D).
  • High claim settlement ratio (93%).

Why Choose It?
Perfect for parents wanting guaranteed returns with flexible payouts. Ideal for education funding with optional health riders.

Premium Example: Rs. 18,000/quarter for Rs. 5 lakh sum assured (10-year term).

3. Axis Max Life Shiksha Plus Super

Axis Max Life Shiksha Plus Super

Type: ULIP
Key Features:

  • Eight fund options (equity, debt, balanced).
  • Premium waiver on parent’s death.
  • Flexible terms (10-25 years).
  • Tax benefits under Sections 80C and 10(10D).
  • Online premium calculator for transparency.

Why Choose It?
Balances risk and returns with expert-managed funds. Suits parents aiming for education-focused savings.

Premium Example: Rs. 50,000/year for Rs. 10 lakh sum assured (30-year-old parent).

4. LIC Jeevan Tarun

LIC Jeevan Tarun

Type: Limited Premium Money-Back Plan
Key Features:

  • Survival benefits (15% of sum assured from ages 20-24).
  • Maturity benefit with bonuses.
  • Premium waiver on parent’s death.
  • Tax benefits under Sections 80C and 10(10D).
  • Regular payouts for education.

Why Choose It?
A traditional plan for risk-averse parents, offering guaranteed returns and milestone-based payouts.

Premium Example: Rs. 25,000/year for Rs. 5 lakh sum assured (15-year term).

5. ABSLI Vision Star Plan

ABSLI Vision Star Plan

Type: Non-Participating Plan
Key Features:

  • Guaranteed payouts at key milestones.
  • Death benefit with reduced sum assured.
  • Premium waiver ensures policy continuity.
  • Flexible premium options (monthly, yearly, single).
  • Tax benefits under Sections 80C and 10(10D).

Why Choose It?
Simple, guaranteed returns for parents prioritizing predictable payouts.

Premium Example: Rs. 20,000/year for Rs. 4 lakh sum assured (15-year term).

6. PNB MetLife Goal Ensuring Multiplier

PNB MetLife Goal Ensuring Multiplier

Type: ULIP
Key Features:

  • 17 fund options for diverse risk profiles.
  • Premium waiver on death or critical illness.
  • Flexible premium payment (limited or regular).
  • Tax benefits under Sections 80C and 10(10D).
  • Loyalty additions enhance fund value.

Why Choose It?
High flexibility with multiple funds, ideal for long-term wealth creation.

Premium Example: Rs. 1 lakh/year for Rs. 10 lakh sum assured (18-year term).

7. Bajaj Allianz Young Assure

Bajaj Allianz Young Assure

Type: Traditional Savings Plan
Key Features:

  • Guaranteed payouts in installments.
  • Premium waiver on parent’s death.
  • Optional riders (accidental death, critical illness).
  • Tax benefits under Sections 80C and 10(10D).
  • Customizable payout schedules.

Why Choose It?
Reliable for parents seeking stable returns with milestone-based payouts.

Premium Example: Rs. 30,000/year for Rs. 6 lakh sum assured (15-year term).

8. Aegon Life Rising Star Insurance Plan

Aegon Life Rising Star Insurance Plan

Type: ULIP
Key Features:

  • Triple benefit coverage until age 25.
  • Seven fund options for investment flexibility.
  • Partial withdrawals after 5 years.
  • Tax benefits under Sections 80C and 10(10D).
  • Top-up premium option.

Why Choose It?
Comprehensive coverage with liquidity, ideal for dynamic financial needs.

Premium Example: Rs. 40,000/year for Rs. 8 lakh sum assured (20-year term).

9. Aviva Young Scholar Advantage

Young Scholar Advantage

Type: Non-Participating ULIP
Key Features:

  • Maturity benefit with fund value.
  • Partial withdrawals after 5 years.
  • Seven fund options for tailored investments.
  • Tax benefits under Sections 80C and 10(10D).
  • Premium waiver on parent’s death.

Why Choose It?
Designed for education-focused savings with flexible withdrawals.

Premium Example: Rs. 35,000/year for Rs. 7 lakh sum assured (15-year term).

10. HDFC SL YoungStar Super Premium

SL YoungStar Super Premium

Type: ULIP
Key Features:

  • Four fund options for customization.
  • Flexible sum assured (10x or 7x annual premium).
  • Life and Life & Health options.
  • Tax benefits under Sections 80C and 10(10D).
  • Partial withdrawals for emergencies.

Why Choose It?
Customizable for higher education or marriage expenses with market-linked growth.

Premium Example: Rs. 15,000/year minimum for Rs. 5 lakh sum assured.

Why Child Investment Plans Matter

Child investment plans combine life cover with savings or market-linked returns, ensuring your child’s dreams are funded even in your absence. These plans offer premium waivers, tax benefits, and flexible payouts. With education costs for an MBA or international degree reaching Rs. 20-50 lakh, starting early maximizes compounding benefits. Here’s a look at the best child insurance plans in India for 2025, tailored for diverse financial goals.

Benefits of Child Investment Plans

  • Financial Security: Lump-sum or periodic payouts for education, marriage, or other goals.
  • Premium Waiver: Policy continues without future premiums if the parent passes away.
  • Tax Savings: Deductions up to Rs. 1.5 lakh under Section 80C; maturity benefits tax-free under Section 10(10D).
  • Market-Linked Growth: ULIPs offer equity/debt fund options for higher returns.
  • Flexibility: Customize premiums and payouts to suit your budget and milestones.

Caparison of top 10 child investment plans

Here is the comparison of child investment plan to help in making informative decision for your child’s future:

Plan Name

Type

Sum Assured (Example)

Annual Premium (Example)

Policy Term

Key Features

Tax Benefits

Claim Settlement Ratio

SBI Life Smart Scholar

ULIP

Rs. 4 lakh

Rs. 18,000

8-20 years

9 fund options, premium waiver, partial withdrawals after 5 years, loyalty additions

Sections 80C, 10(10D)

94% (2023-24)

HDFC Life YoungStar Udaan

Participating

Rs. 5 lakh

Rs. 18,000/quarter

10-20 years

Life & Health options, Save/Save-n-Gain benefits, flexible payouts, critical illness rider

Sections 80C, 10(10D)

93% (2023-24)

Axis Max Life Shiksha Plus Super

ULIP

Rs. 10 lakh

Rs. 50,000

10-25 years

8 fund options, premium waiver, flexible terms, online premium calculator

Sections 80C, 10(10D)

98% (2023-24)

LIC Jeevan Tarun

Money-Back

Rs. 5 lakh

Rs. 25,000

10-20 years

Survival benefits (15% ages 20-24), maturity with bonuses, premium waiver

Sections 80C, 10(10D)

96% (2023-24)

ABSLI Vision Star Plan

Non-Participating

Rs. 4 lakh

Rs. 20,000

10-20 years

Guaranteed payouts, premium waiver, death benefit with reduced sum assured, flexible premiums

Sections 80C, 10(10D)

97% (2023-24)

PNB MetLife Goal Ensuring Multiplier

ULIP

Rs. 10 lakh

Rs. 1 lakh

10-20 years

17 fund options, premium waiver on death/critical illness, loyalty additions, flexible premiums

Sections 80C, 10(10D)

95% (2023-24)

Bajaj Allianz Young Assure

Traditional Savings

Rs. 6 lakh

Rs. 30,000

10-20 years

Guaranteed installment payouts, premium waiver, optional riders (accidental death, critical illness)

Sections 80C, 10(10D)

94% (2023-24)

Aegon Life Rising Star

ULIP

Rs. 8 lakh

Rs. 40,000

10-25 years

Triple benefit until age 25, 7 fund options, partial withdrawals after 5 years, top-up premium option

Sections 80C, 10(10D)

93% (2023-24)

Aviva Young Scholar Advantage

Non-Participating ULIP

Rs. 7 lakh

Rs. 35,000

10-20 years

Fund value maturity, partial withdrawals after 5 years, 7 fund options, premium waiver

Sections 80C, 10(10D)

92% (2023-24)

HDFC SL YoungStar Super Premium

ULIP

Rs. 5 lakh

Rs. 15,000

10-20 years

4 fund options, flexible sum assured (10x/7x premium), Life & Health options, partial withdrawals

Sections 80C, 10(10D)

93% (2023-24)

How to Choose the Best Child Investment Plan

Selecting the right plan involves aligning your financial goals, risk appetite, and child’s needs. Here are 10 tips to buy child plans:

  1. Set Clear Goals: Define whether the plan is for education, marriage, or both.
  2. Account for Inflation: Choose plans with returns exceeding 10-12% education inflation.
  3. Ensure Premium Waiver: Protects policy continuity if the parent passes away.
  4. Match Risk Profile: ULIPs (e.g., SBI Life Smart Scholar) for high returns; traditional plans (e.g., LIC Jeevan Tarun) for guaranteed returns.
  5. Opt for Flexible Payouts: Plans like HDFC Life YoungStar Udaan align payouts with milestones.
  6. Use Premium Calculators: Tools to estimate costs and returns.
  7. Compare Plans: Evaluate premiums, benefits, and claim settlement ratios (e.g., Max Life: 98%).
  8. Maximize Tax Benefits: Deductions up to Rs. 1.5 lakh under Section 80C; tax-free maturity under Section 10(10D).
  9. Check Insurer Reliability: Prioritize high claim settlement ratios (e.g., HDFC Life: 93%).
  10. Start Early: Longer horizons (10-15 years) maximize returns via compounding.

Types of Child Investment Plans

  1. Child ULIPs: Market-linked plans like SBI Life Smart Scholar and PNB MetLife Goal Ensuring Multiplier offer equity/debt investments for higher returns.
  2. Endowment Plans: Traditional plans like ABSLI Vision Star and LIC Jeevan Tarun provide guaranteed returns for risk-averse parents.
  3. Money-Back Plans: Bajaj Allianz Young Assure and HDFC Life YoungStar Udaan offer periodic payouts for milestones.

 

Combating Rising Costs

With MBA fees at Rs. 20-25 lakh and international education exceeding Rs. 50 lakh, child plans counter inflation through ULIP returns (up to 12%) or guaranteed payouts. Starting early leverages compounding, building a substantial corpus by adulthood.

Final Thought

The top 10 child investment plans for 2025, including SBI Life Smart Scholar, HDFC Life YoungStar Udaan, and LIC Jeevan Tarun, offer tailored solutions for your child’s future. Whether you seek market-linked growth or guaranteed returns, these plans ensure financial security. Start today to give your child a head start toward their dreams!

Disclaimer: The use of any third-party business logos in this content is for informational purposes only and does not imply endorsement or affiliation. All logos are the property of their respective owners, and their use complies with fair use guidelines. For official information, refer to the respective company’s website.