"The best gift that you can ever give your child is a bright future, and in this day and age, a great deal of your child's security lies in financial planning from an early age. "

When the time is right, you understand the need to be judicious and do your financial planning in order to figure out your child's needs with respect to higher education, college fees, accommodation, among others. Child plans basically help in financial planning for your child's future needs at the right age. As a parent you can secure your child’s future with plans that encompass children insurance plans and children education plans.


The rising cost of education is troubling Indian parents. More than 60% of the respondents in an online survey by ET Wealth listed this as their biggest worry. This was followed by lack of knowledge, not saving enough and starting too late.

On the other hand, a child insurance plan offers a lump-sum payment on the death of the policyholder, but the policy does not end. All future premiums are waived and the insurance company continues investing this money on behalf of the policyholder.

Almost all life insurance firms have child plans in their portfolio of offerings. Some of these are market-linked policies, which allow policyholders to invest in equities and debt, while others are traditional plans, which invest only in debt. In case of a life insurance policy, the premium paid for a child plan is eligible for tax deduction under Section 80C, while any income from the plan is tax-free under Section 10 (10D). 

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