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
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
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
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
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
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
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
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
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
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
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:
- Set Clear Goals: Define whether the plan is for education, marriage, or both.
- Account for Inflation: Choose plans with returns exceeding 10-12% education inflation.
- Ensure Premium Waiver: Protects policy continuity if the parent passes away.
- Match Risk Profile: ULIPs (e.g., SBI Life Smart Scholar) for high returns; traditional plans (e.g., LIC Jeevan Tarun) for guaranteed returns.
- Opt for Flexible Payouts: Plans like HDFC Life YoungStar Udaan align payouts with milestones.
- Use Premium Calculators: Tools to estimate costs and returns.
- Compare Plans: Evaluate premiums, benefits, and claim settlement ratios (e.g., Max Life: 98%).
- Maximize Tax Benefits: Deductions up to Rs. 1.5 lakh under Section 80C; tax-free maturity under Section 10(10D).
- Check Insurer Reliability: Prioritize high claim settlement ratios (e.g., HDFC Life: 93%).
- Start Early: Longer horizons (10-15 years) maximize returns via compounding.
Types of Child Investment Plans
- Child ULIPs: Market-linked plans like SBI Life Smart Scholar and PNB MetLife Goal Ensuring Multiplier offer equity/debt investments for higher returns.
- Endowment Plans: Traditional plans like ABSLI Vision Star and LIC Jeevan Tarun provide guaranteed returns for risk-averse parents.
- 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!
