Best Child Education Insurance Policies In India

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The various children insurance plans available in the market, not only provide the basic risk cover that is an essential requirement of a long term plan, also provides a very good tax advantage.
Life insurance plays an important role in an individual's financial planning exercise. Insurance can assist individuals in planning for their own life stages as well as provide for their child's future. It also secures the child’s future in case of any unfortunate event. Various types of child insurance products are available in the market today.


These Insurance plans can be divided into 2 typesTraditional endowment plan : This plan is suited for parents with a low risk appetite. Here the money is invested in corporate bonds and government securities. You would get stable bonuses and give the parent considerable comfort knowing roughly how much he can expect.

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ULIP child plan : This plan is for parents with some risk appetite. Here the money is invested across equity and debt markets. Equities are best placed to beat inflation over the long term. However, to achieve this, one must invest wisely. Debt on the other hand brings stability to a portfolio. While the returns for debt at times may seem unattractive as compared to equities, their importance in a portfolio (ULIP) cannot be understated. The basic, traditional children plans usually work as an alternative for the bank deposits etc. where as unit linked insurance plans can be used as a double advantageous plans where the risk is also covered and the investment decisions will remain in the hands of the investor and thus can generate much better returns. In addition to the necessary risk cover, they also ensure that investments can be channeled into high growth options.  There is no need to buy a Life Insurance on your child’s name. There is no logic for buying life insurance for a person on whom nobody is financially dependant.  Child insurance plans have traditionally played an important role in securing the child's future. Individuals need to understand the dynamics for planning their children so that they can best utilize the alternatives available in the market.
In the end, it all boils down to making an informed choice and ensuring that your plan is working in line with your expectations.