Top Policy for Girl Child in India

Top Investment Policy for Girl Child in India 2024

As girl child parents, everyone desires to provide the best possible future for their children. To ensure their well-being, education, and financial security, it is crucial to plan ahead. There are many schemes and plans offered by the government and private sector that aim to support the girl child and help her achieve her potential. Let’s look at the top policy for a girl child in India.

1. ABSLI Vision Star Plan

The Aditya Birla Sun Life Insurance Vision Star Plan ensures a steady stream of guaranteed payouts designed to support your child’s education and safeguard their future, even in the unfortunate event of your absence. This plan offers comprehensive financial protection for your family.

Key Features

• Regular payouts start 5 years after the premium paying term
• Multiple Assured Payout options
  • Option A – 4 biannual payouts of 20% | 20% | 30% | 30%
  • Option B – 5 annual payouts of 15% | 15% | 20% | 20% | 30%
• The flexibility of premium paying term and policy term
• Growth of your savings through bonus accumulation
• Death Benefit

2. ABSLI Child Future Assured Plan

The Aditya Birla Sun Life Insurance Child’s Future Assured Plan is a savings-oriented life insurance policy that provides guaranteed benefits to support the important milestones in your child’s life, such as education and marriage. This plan ensures that you can confidently take care of your child’s future needs.

Key Features

• Flexibility to save for a child’s Education, Marriage or both life goals
• Complete financial security
• Flexibility to choose from various pay and policy terms
• Worry-free goal achievement through Policy Continuance Benefit
• Death Benefit

3. Aviva Young Scholar Secure Plan

Aviva Young Scholar Secure is that one plan which offers you both, wealth creation and financial security, with added convenience. 

Key Features

• Tuition Fee Support: Annual payout from age 13 to 17 of the child is paid to help with coaching class fees or help the child pursue some extracurricular activities. 
• College Admission Fund (CAF): When your child reaches the age of 18 and is prepared to embark on their college education journey, you will receive a substantial lump sum amount to support their dream of studying at the finest institution. This ensures that your child has the freedom to select their desired college, university, or program without the added stress of financial burdens. With this financial assistance, your child can pursue their academic aspirations and make the most of their educational opportunities.
• Higher Education Reserve (HER): As your child reaches the age of 21, they may go for higher education abroad. The funds accumulated can be utilized to manage your child’s expenses during their post-graduation phase, enabling you to support their aspirations and make their dreams a reality.
• Flexible Premiums
• Tax Benefits under Section 80C and Section 10(10(d)) of the Income Tax Act, 1961. 

4. Bajaj Allianz Young Assure – Child Education Investment Plan

Bajaj Allianz Young Assure is a traditional savings and insurance plan that fosters disciplined investing, ensuring that your child accomplishes their life goals. This plan is designed as a participating endowment policy with regular and limited premium payments. It empowers you to strategically plan for the financial milestones during your child’s formative years. By opting for Bajaj Allianz Young Assure, you can secure a bright future for your child while instilling a sense of financial discipline.

Key Features

• Multiple premium payment and policy terms
• Guaranteed maturity benefit and guaranteed additions
• Three cash instalment options
• Comprehensive coverage
• Multiple rider benefits

5. Bajaj Allianz Lifelong Assure – Child Investment and Saving Plan

Bajaj Allianz Lifelong Assure is a comprehensive whole life insurance plan specifically designed to provide you with financial support as your child progresses towards their life goals. This child plan offers income and life coverage until you reach 100 years of age. Even during the unfortunate event of the parent’s demise, this plan ensures that the child’s life goals continue to receive financial support. 

Key Features

• High sum assured rebate
• Guranteed cash back
• Cash bonus (if any) starting from the end of 6 years
• Whole life policy
• Limited premium paying term
• Guaranteed death benefit of up to 300% of sum assured
• Option to take death benefits in monthly instalments
• Multiple rider options
• High sum assured rebate
• Guaranteed cash back

6. Bharti AXA Life Shining Stars

This child plan policy provides you with the flexibility to select from a range of premium paying terms and policy terms. This allows you to tailor the benefit payout options according to your child’s specific requirements. It serves as an excellent short-term investment choice for a child insurance policy, offering you the freedom to customize the plan to suit your needs and secure a bright future for your child.

Key Features

• Non-linked, non-participating limited pay endowment Life Insurance plan
• Designed to take care of the financial needs of your child.
• Flexibility to opt between 2 Maturity Payout Options
• Flexibility in Policy Term and Premium Payment Terms
• A great short-term investment option for a child insurance policy.
• Tax Benefits

7. Bharti AXA Life Child Advantage

This plan guarantees payouts at important milestones and provides a premium waiver in the event of an unfortunate occurrence, safeguarding your child’s dreams without any compromise. Furthermore, any accumulated bonuses from the first year onwards are paid out at maturity, catering to your child’s additional needs in the future. The Life Insurance Benefit serves as a contingency fund, enabling your family to maintain their standard of living, ensuring that nothing hinders your child’s future.

Key Features

• Dual maturity benefit
• Dual payout options: Money back plan and endowment plan
• Potential upside with bonus
• Dual premium payment terms
• Life insurance benefit
• Tax benefits

8. Canara HSBC – Smart Future Plan

The Smart Future Plan is a unit-linked insurance plan designed to provide a long-term investment opportunity to fulfill diverse family needs, such as asset creation and securing a prosperous future for your child. This plan includes a comprehensive insurance cover, which encompasses the Sum Assured on death and Premium Funding benefit on death or disability. With this coverage in place, your family’s financial plans remain intact in the case of unfortunate events, ensuring their well-being remains unaffected.

Key Features

• A Unit Linked Insurance Plan (ULIP)
• Invest in a diverse portfolio of equity and debt funds
• Option to change life cover amount during the policy term
• Protect your child’s dream from your untimely death or disability
• Manage your investment portfolio automatically
• Tax-free partial withdrawals after five years

9. Canara HSBC – Smart Junior Plan

The Canara HSBC Life Insurance Smart Junior Plan is a personalized non-linked participating life insurance plan that combines savings and protection. It is specifically designed to meet your child’s future education needs, ensuring their financial security even in your absence. The Smart Junior plan offers guaranteed payouts during the final 5 years of the policy, which can be synchronized with your child’s educational milestones. 

Key Features

• Guaranteed annual pay-outs to match your child’s needs
• Protect your child’s dream from your untimely death
• Faster corpus growth with annual bonuses
• Customize the investment and pay out plans as per your needs
• Save tax on invested money and tax-free maturity values

10. Edelweiss Tokio Endowment Plans for Children

Endowment plans allocate funds into various debt products, offering guaranteed security and lower risk, although the returns may not be substantial. When it comes to saving for a child’s education, endowment plans are less risky compared to other short-term investments affected by market fluctuations. Moreover, choosing a child endowment plan provides tax benefits, serving the dual purpose of tax savings and long-term financial planning.

11. Edelweiss Tokio Guaranteed Returns Plans

Guaranteed returns plans for children provide an assured amount upon completion of the maturity period, offering a safe and low-risk method of saving for your child’s future. These plans come with flexible premium options, allowing you to choose the amount and mode of premium payments based on your income and liquidity levels. Additionally, you have the flexibility to select the maturity period based on your child’s age and the purpose of your savings, ensuring that the plan aligns with your future plans and meets your specific needs as a parent.

12. Edelweiss Tokio Market Linked Plans

Market-linked child plans, like ULIPs, combine life insurance with market-based investments for future goals. They offer flexibility in premiums and fund selection, liquidity after a lock-in period, tax benefits, systematic savings, and wealth accumulation through market-linked funds.

13. Edelweiss Tokio Life Insurance Plans

Life insurance plans for children provide essential protection for their future. With options like single premium plans or regular premium plans, parents can ensure financial security through lump sum or periodic premium payments.

14. Future Generali Assured Education Plan

This child education plan allows you to save systematically for your child’s higher education until they reach 17 years of age. As a Guaranteed Income Plan, it offers three options for receiving guaranteed payouts based on your child’s educational milestones, ensuring that the funds are available when needed. Even in the event of an unfortunate circumstance in your life, this plan secures your child’s education. You can enhance the plan by opting for riders that provide coverage for accidental death and/or total and permanent disability. Additionally, this plan offers tax benefits in accordance with prevailing tax laws.

15. HDFC SL YoungStar Udaan

YoungStar Udaan scheme gives the flexibility to choose from various maturity benefit options such as Aspiration, Academia, and Career, as well as death benefit options like Classic and Classic Waiver. These choices allow you to align the pay-outs with important milestones in your child’s life. Additionally, you can opt to receive the survival benefits as either a lump sum or monthly installments, providing further customization to suit your preferences and financial needs.

16. HDFC SL YoungStar Super Premium

YoungStar Super Premium schemes helps, you can select either the Life Option or the Life or Health Option based on your needs for your child’s future. Additionally, you have the flexibility to choose from four funds with varying equity and debt exposure. Furthermore, you can customize your policy term based on your requirements, selecting either 10 years or 15 to 20 years.

17. ICICI Pru SmartKid Solution

ICICI Prudential Smart Kid Solution with ICICI Pru Smart Life is a Unit Linked Insurance Plan (ULIP) that grows your investments and helps you secure the educational milestones of your children.

Key Features

• Comprehensive protection to secure your goal
• Choice of portfolio strategies: Fixed Portfolio Strategy and LifeCycle-based Portfolio Strategy 2
• Flexibility of premium payment
• Liquidity
• Loyalty benefits
• Choice of protection level
• Tax benefits

18. Maxlife Future Genius Education Plan

The Max Life Future Genius Education Plan is specifically designed to assist parents in effectively managing their child’s higher education expenses through disciplined savings. This insurance plan offers flexibility by allowing parents to choose premium payment terms, policy terms, and the timing of money back based on their child’s education requirements.

19. Maxlife Shiksha Plus Super

Max Life Shiksha Plus Super Plan helps you secure a fund for your child’s education and future. You get comprehensive coverage and can choose strategies to secure your investment. 

20. SBI Life – Smart Champ Insurance

SBI Life – Smart Champ Insurance provides benefits for future educational needs as soon as they turn 18 years of age.

Key Features

• Guaranteed Smart Benefits: Ensure child’s higher educational needs are met.
• It provides triple protection through a lump sum payout, premium waiver, and smart benefits.
• The convenience of paying a one-time or limited premium makes it easier to secure your child’s future.

21. SBI Life – Smart Scholar

SBI Life – Smart Scholar plan takes proactive measures to fulfil your child’s aspirations by creating a corpus for a financially secure future, even in challenging circumstances. With market-linked returns, it provides the means to support your child’s dreams against all odds.

22. LIC New Children’s Money Back Plan

LIC’s New Children’s Money Back Plan is a participating, non-linked individual life assurance plan. It caters to the financial needs of growing children by providing survival benefits for education, marriage, and other expenses. The plan also offers life cover for the child during the policy term and multiple survival benefits upon reaching specified durations. Parents or grandparents can purchase this plan for children aged 0 to 12 years.

23. LIC Jeevan Tarun

LIC’s Jeevan Tarun is an individual, participating, non-linked life assurance savings plan for children. It provides a balanced combination of protection and saving features. This plan is specifically designed to fulfil the educational and other financial needs of growing children. It offers annual Survival Benefit payments from ages 20 to 24 years and a Maturity Benefit at the age of 25 years. The plan also offers flexibility, allowing the proposer to choose the proportion of Survival Benefits to be availed during the policy term at the proposal stage.

24. SUD Life Aashirwaad

SUD Life AASHIRWAAD is a non-linked, non-participating endowment plan that safeguards your child’s dreams and planned benefits, even in your absence.

Key Features

• Guaranteed Benefits at Maturity
• Choose from 5 different maturity payout options
• Policy remains intact even after the unfortunate demise of the Life Assured
• Flexible premium payment term and policy term options
• Income Tax benefits under Section 80C & 10(10D)1

Benefits of Policy for a Girl Child

• Financial Security: The primary benefit of these plans is to provide financial security to the girl child. It can be for future life events like education, marriage and in case of unforeseen circumstances such as the demise or critical illness of the parent or guardian. The insurance component ensures that the child’s future needs, including education and other expenses, are taken care of even in the absence of the parent’s financial support.
• Wealth Creation: These policies offer an excellent opportunity to build a corpus for your girl child’s future needs. These plans invest a portion of the premium in various market-linked instruments such as equity, debt, or a combination of both. Over the long term, these investments have the potential to grow significantly, creating a substantial corpus for important milestones like higher education or marriage.
• Flexibility and Customization: These policies come with flexible payment options, allowing you to choose the premium payment frequency that suits your financial capabilities. Moreover, some plans offer customisation features, where you can alter the investment mix as per your risk tolerance levels and market conditions.
• Tax Benefits: You get tax benefits under Section 80C and Section 10(10D) of the Income Tax Act 1961. The premium paid towards these plans qualifies for a tax deduction, and the maturity amount or death benefit is tax-exempt.

Factors to Consider When Selecting a Policy

• Insurance Coverage: Assess the insurance coverage offered by the plan. Ensure that it adequately meets your girl child’s future needs in terms of education, marriage, or any other financial requirements.
• Investment Options: Evaluate the investment options available within the plan. Look for plans that provide a diversified portfolio with a mix of equity and debt instruments, allowing for potential wealth creation while managing risk.
• Lock-in Period: These policies generally come with a lock-in period. Consider the lock-in period and ensure it aligns with your investment horizon and goals.
• Flexibility and Add-ons: Check for flexibility features such as partial withdrawals or the option to increase or decrease the sum assured as your girl child’s financial needs evolve. Additional riders, such as critical illness or disability cover, can further enhance the plan’s coverage.
• Fund Performance: Research and evaluate the past performance of the funds associated with the plan. Look for consistency and long-term returns to gauge the potential growth of your investment.