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Child Education Plan

Every parent wants to provide quality education for their child. A Child Education Plan helps you systematically build a fund corpus and offers life Read more cover. The plan combines savings with insurance benefits, offering life cover, waiver of premium, and maturity benefits. With a Child Education Plan, you can stay financially prepared to support your child’s education and secure their future. Read less

Every parent wants to provide quality education for their child. A Child Education Read more Plan helps you systematically build a fund corpus and offers life cover. The plan combines savings with insurance benefits, offering life cover, waiver of premium, and maturity benefits. With a Child Education Plan, you can stay financially prepared to support your child’s education and secure their future. Read less

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What is a child education plan?

A child education plan is a type of child insurance plan that combines protection and savings. It allows parents to secure funds for future education expenses while also offering life cover for child security. The plan works by building a financial corpus over the years, which is used for higher studies or career needs. Features like waiver of premium help ensure that the plan continues even after a parent’s demise. A maturity benefit is provided at the end of the policy term to cover rising costs.

How does child insurance plan work?

A child insurance plan works through regular premium payments made by the parent over the chosen term. These premiums are invested by the insurer to create a fund for the child’s future needs. If the parent passes away during the policy, the insurer provides financial support according to the plan’s terms. At the end of the policy, the child receives the accumulated value to meet education or career-related expenses.

Why do you need a child education plan?

Like any other service or commodity in today’s time, quality education has become quite expensive and is still not affordable for many people. This becomes a problem since getting a good education becomes difficult for many children who are keen to learn and grow. Parents can choose to use their savings funds to educate their children but risk losing their financial emergency fund.

This is why an insurance policy for children has become important. With such a policy, parents can plan and save for their children’s education so that there are no shortcomings when it comes to giving their children the best education.

Our Best-Selling Child Education Plan

Tata AIA

Guaranteed Return Insurance Plan

Best Seller

Plan Benefits:

Get guaranteed² tax³ free income
Save tax up to ₹46,800⁵
Guaranteed additions⁴ to boost corpus

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Individual, Non-Linked, Non-Participating, Life Insurance Savings Plan – (UIN:110N152V15) | ^2/4T&C apply

Tata AIA

Fortune Guarantee Plus

Plan Benefits:

Get guaranteed⁶ tax³ free income
Get your premium amount back⁷
Health cover against 40 critical illnesses⁸

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Non-Linked, Non-Participating, Individual Life Insurance Savings Plan. (UIN: 110N158V14)

Importance of life insurance cover in child plans

The importance of life insurance cover in child plans is as follows:

Financial protection for the child
: Life cover helps ensure that the child has financial support to continue studies in case the parent passes away.
Uninterrupted education
: Education expenses are managed without breaks through the waiver of premium feature, which keeps the plan active even after the parent’s death.
Support during uncertain times
: The plan supports children by covering education costs at important stages, from school to higher studies.
Confidence for parents
: Parents gain confidence knowing that the child’s education will continue, even in difficult financial circumstances.

Top features of a child education insurance plan

The following are the key features of child education plans.

Combined savings and protection:

A child education insurance plan provides both life cover and an investment component, helping parents create funds for future education while maintaining financial security.
Maturity benefits:

At the end of the policy term, the child receives a maturity benefit that can be used to manage higher education expenses or other academic goals.
Flexible payout options:

Parents have the choice to receive the payout either as a lump sum or through regular instalments, depending on the child’s study requirements.

Benefits of a child insurance plan

Tax benefits:

Since child insurance plans are meant to provide maximum benefits to the child, the tax³ benefits of child education plans come under the E-E-E (exempt- exempt- exempt) category. This enables the insured to claim tax³ benefits on the premiums paid towards the policy as well as on the maturity proceeds paid out for the child’s education, lifestyle, and emergency needs.
Flexibility of plans:

The policy terms and the premium payment terms under an insurance policy for education are varied. You can choose a sum assured to further ensure that the plan is customised as per your child’s needs. Depending on your child’s future plans and aspirations, you can plan the policy such that the benefits are paid out when the child needs them.

Tax advantages of investing in child plans

The table below highlights how tax³ benefits apply to a child education investment plan under Indian law.

Tax benefit type

Explanation

Premium deduction (Section 80C)

You can claim deductions up to ₹1.5 lakh per year on the premiums you pay for the child insurance plan under Section 80C of the Income Tax Act.

Tax-free maturity proceeds

(Section 10(10D))

The proceeds you receive, whether as income or maturity benefit from the plan, are tax-free under Section 10(10D) of the Income Tax Act

Types of Child Education Plans

The types of child education plans are as follows.

Money-back child plans:

Money-back child plans provide periodic payouts during the policy term without affecting other benefits under the plan. Along with these survival payouts, the maturity amount is paid at the end of the term, and in case of the insured’s death, the child is supported through a waiver of premium benefit. This plan is useful for covering education fees or other expenses before the maturity benefit is received.
ULIP child education plans:

Unit-Linked Insurance Plans (ULIPs) are market-linked child insurance plans where investment returns depend on market performance. These plans allow partial withdrawals before maturity and may provide higher returns, but it is important to understand their workings before selecting one to secure your child’s future.
Endowment-based child plans:

Endowment or child education endowment plans provide a lump sum on maturity along with any applicable bonuses. These plans are designed to suit a child’s future needs, offering guaranteed² returns and flexible sum assured options to ensure adequate coverage for the child’s educational requirements. ²T&C apply

How to get a good child insurance plan?

There is a range of child insurance plans available. To get a good child education plan, as per your needs, here are some of the factors you will need to consider.

Start early
: If you want to buy a child insurance plan, start saving and investing as early as possible for a better scope of financial freedom. This should happen well in advance before you need large amounts of funds for child’s educational costs. For instance, if you are saving up for your child’s college education, the investment should start in their primary or secondary school years.
Consider all economic factors
: Inflation plays a major role when it comes to the rising cost of education and lifestyle in general. However, if the inflation rate is accounted for, then you can get a child insurance plan that can help you save adequate funds for your child’s needs. Hence, even in the future, inflation will not affect the benefits of such a plan.
Read the terms and conditions
: Be sure to look into the terms and conditions of the child insurance policy that you choose. Child insurance plans and their features will vary, and the plan you choose will determine when you can avail of the benefits and payouts. Also, look out for the exclusions, as certain situations may not be covered under the plan.
Understand the payouts
: Many education fund insurance plans start offering benefits once the child is 18 years of age to cover any major milestones in the child’s life. To ensure that these payouts and benefits are applicable to the child, start investing early in the child insurance plan. This will provide enough time for the investment to grow.
Compare different plans
: As you may know, all child life insurance policies are different in terms of their offerings. So, to find the right one for your child’s needs, it is essential that you compare all the plans before choosing one that covers all the requirements you want to secure your child’s future against.
Understand the withdrawal clause
: Child plans tend to offer benefits and payouts during the policy term. But if you choose a ULIP-based child life insurance plan, there could be a lock-in period. In case you need to make emergency withdrawals before or soon after the lock-in period, you will need to know how the clause of partial withdrawals works. This will help you protect your child in uncertain times.
Choose a trusted appointee
: In the event of the insured’s death, an appointee can be nominated to manage the education fund insurance until the child is an adult and can manage the policy themselves. Therefore, the appointee should be a trusted person who is capable of handling the policy in the absence of the parents or the insured till the time the child is of 18 years of age and can understand the child insurance plan.

Key factors to consider while selecting a child plan

When selecting the best child education plan, consider the following factors.

Start early:
Start investing as early as possible so that your savings have more time to grow. This helps beat inflation and ensures you are financially prepared for important education phases like college admission or overseas education.
Choose a plan as per requirements:
Select between guaranteed-return2 or market-linked child plans depending on your risk tolerance. Ensure the plan aligns with your financial capacity and education goals and offers flexibility in premium payments. ²T&C apply
Check premium waiver benefit:
Opt for a policy that offers a waiver of premium. In case of the parent’s untimely demise, the insurer continues paying the future premiums, while the child still receives the maturity benefit for education needs.
Check the partial withdrawal feature:
Some child plans allow partial withdrawals during the policy term. This feature can help manage short-term education expenses such as school fees, coaching classes, or application costs without disturbing the long-term corpus.

Top factors to choose a child insurance plan

Financial security

In case of an unfortunate event, if the parent passes away, the life insurance policy will pay out a lump sum amount to ensure that the child is able to continue their education even in the absence of the premium payments resulting from the parent’s death. This tax^# free amount can pay off the fees and any pending debts so that the child’s education doesn’t not stop.

Shield against inflation

The rate of inflation in education sector has been significantly higher, at around 11-12 per cent⁹. Suppose your child wants to pursue their education in a good school; immediately making such arrangements will compromise your emergency savings. Hence, it is better to opt for a child education insurance policy that can pay for the tuition fees of your child, no matter which educational institution they choose.

Cost of foreign education

If you get a good life insurance education plan for your child well in advance, it can help you get them admitted to a renowned university if you want them to pursue their further education abroad. Specialised courses can be really expensive, but with the help of a good insurance policy for education, these expenses can be covered.

Savings for education

Depending on the type of policy and the sum assured you choose, a life insurance education plan for your child can offer sufficient funds needed for your child’s educational needs. Be it tuition fees or additional coaching, the plan ensures that your child has everything they need!

For medical emergencies

A child insurance plan can offer a provision for making partial withdrawals or offer payouts in the event of a health emergency, such as sickness or an accident leading to hospitalisation and the need for medical care. Such a benefit may come in the form of an optional rider or an inbuilt plan feature.

Income protection in the absence of parent(s)

Once the policy reaches maturity, the child will be able to receive the maturity benefit as a lump sum amount as specified during the policy purchase. In addition, if the parent (the insured) passes away during the policy term, not only will the premiums be waived off (if a waiver of premium option is chosen), but a regular income option can also be offered to the child.

Education loan against the policy

If your child opts for higher education at a good university in India or abroad, the expenses may exceed your savings funds. However, a child insurance plan can help you out as it acts as collateral if you want to secure an education loan to fulfil your child’s higher education needs.

Flexible plan options

Child insurance policies offer several options when it comes to the policy terms and premium payment terms under the plan. You can choose to pay the premiums at regular intervals or also opt for a limited pay plan. There is also flexibility in choosing the premium payment mode – annually, semi-annually, quarterly, or monthly.

Advantages of early planning for child’s education

The advantages of early planning for child’s education are as follows:

Compounding benefits over the years:

Starting a child education plan early allows parents to contribute gradually over time. Even small contributions can accumulate into a significant fund by the time the child reaches higher education, which helps ensure financial security.
Effective management of education expenses:

By investing early, parents can avoid making large, sudden contributions later. Steady, long-term contributions help manage finances effectively while ensuring the child’s education fund grows as planned.
Time to evaluate policy features:

Early planning provides the flexibility to compare different child education plans. Parents can assess features, returns, and benefits carefully to choose a plan that aligns with their financial objectives and the child’s educational requirements.
Helps manage rising education costs:

Education expenses tend to increase over time. Early investment helps parents plan for inflation, ensuring the accumulated corpus is sufficient to cover future academic fees.
Encourages financial awareness:

Engaging children in discussions about saving and planning helps them understand the importance of financial discipline, developing responsibility from an early age.

How Much Should You Invest in a Child Insurance Plan?

The suitable coverage for the child life insurance plan you choose should depend on your child’s needs. For one, understand how the cost of education, healthcare, and other lifestyle aspects are on the rise. This should help you understand how inflation plays an important role in your current savings and investments towards the child insurance plan.

To get quality facilities for your child’s education, you may have to spend a very large amount. Therefore, to ensure that your child does not face a shortage of finances when they go to college or suffer financial drawbacks in your absence, select a coverage amount that can comfortably cover the education as well as any emergency requirements while also covering the future rate of inflation and its impact on the policy.

List of documents required for buying children's insurance plans

The following table highlights the documents may be required for buying children’s insurance plans and may vary as per the plan requirements.

Document type	Acceptable documents
Proof of Age	Birth Certificate, Class 10/12 Marksheet, Passport
Proof of Identity	Aadhaar Card, Passport, PAN Card, Voter ID
Proof of Income	Document showing the income of the insurance buyer
Proof of Address	Telephone Bill, Electricity Bill, Ration Card, Passport, Driving License
Proposal Form	Duly filled proposal form

Myths Associated with Child Insurance Plans

01

Child insurance plans are inauspicious as they insure a child’s life

Even though child insurance plans offer benefits to a child, the insured is the earning parent, not the child. Therefore, these plans are meant to secure the child’s future and fulfil their educational aspirations in case of the insured’s (parent’s) untimely demise during the policy term.
02

A child insurance plan only covers the education costs of the child.

Child life insurance plans are comprehensive and don’t just secure the child’s educational expenses. Since the insurance payouts are made at regular intervals during the policy term and at maturity, the child can decide how they would like to utilise the funds as per their financial commitments.
03

A child insurance policy has a long lock-in investment period

Child insurance policies have flexible policy terms, and in the case of market-linked plans, the tenure can be between 5 to 25 years. With this kind of flexibility, the insured (the parent) can make partial or full fund withdrawals from the policy as and when the need arises.

Claim process for child insurance plans

Here is how the claim process for child insurance plan works.

Inform the insurer :
The claim process starts with informing the insurance company about the life insured’s death. This can typically be done online, via email, or by visiting the branch office. Informing the company quickly helps ensure the timely processing of the claim.
Submit required documents :
Next, the claimant must submit all necessary documents. These generally include a completed claim form, the death certificate of the policyholder, policy documents, identity proof of a nominee, and any additional documents requested by the insurer..
Claim evaluation :
The insurance company reviews the submitted documents carefully to verify authenticity and ensure that all policy terms and conditions are met. This step helps ensure transparency and accuracy in processing the claim.
Claim approval :
Once the evaluation is complete and all documentation is verified, the claim is approved according to the terms of the policy.
Payout to nominee :
Lastly, the approved claim amount is disbursed directly to the child’s guardian or chosen nominee. This ensures that the child’s financial needs are supported without unnecessary delays.

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FAQs on child insurance plan

When should you buy a child Insurance plan?

Buy a child insurance plan as early as possible to save for your child’s future. Start when they’re in school and choose a policy term that can cover college or university expenses.
How does a child insurance plan help your child?

A child education plan builds savings for future educational needs and provides life cover for the parent, ensuring benefits, waiver of premium, and maturity proceeds if the parent passes away.
How to get a fair estimate of the cost of a child insurance plan?

To get a fair estimate of a child’s education plan, calculate your child’s future educational expenses, including tuition, accommodation, and inflation. Also, consider possible emergencies. You can also use a child education plan calculator to select suitable coverage.
Do child insurance plans have tax benefits?

Yes, Premiums are eligible for tax³ deductions under Section 80C up to ₹1.5 Lakh, and maturity proceeds or death benefits may also qualify for tax benefits, depending on the policy terms.
How to choose the best coverage of a child insurance plan?

To choose appropriate coverage, consider the expenses the plan should cover and select a sum assured that provides adequate support for your child. You can also compare different plans using a cost-benefit analysis to find a suitable option.
What should be the tenure of the child insurance plan?

Policy tenure depends on your educational plans for your child and the insurance needs. You should choose a tenure that aligns the plan with your child’s educational and financial goals.
Which plan is best for child education in India?

The best plan for child education in India depends on the goals, budget, and future study needs of the child.
What are the documents required to buy a child insurance plan?

The required documents to buy a child insurance plan are identity proof, address proof, income details of the life insured and other documents as per the policy requirement.
What is a child's life coverage?

Child life coverage is a pre-determined sum paid to the nominee if the parent (policyholder) passes away during the policy term. It helps ensure financial support for the child’s future needs.
Can I customise a child plan to suit my specific requirements?

Yes, many plans allow customisation, letting you adjust the premium payment frequency and other plan features as per plan eligibility.
Do child plans provide a guaranteed maturity amount compared to mutual funds?

Yes, many child plans offer guaranteed² amounts, providing a clear and defined sum that will be available for your child’s future needs. ²T&C apply
When can one withdraw money from the child plan in ULIPs?

In case of ULIP plans, partial withdrawals are usually allowed after a fixed lock-in period, and you can use them to meet your child’s financial needs.
Can I purchase a child insurance plan for my 15-year-old kid?

Yes, parents can buy plans for children up to a certain age limit, depending on insurer policy.
Why is beneficiary or nominee important in a child plan?

A nominee or beneficiary is important because the sum is paid to them if the parent dies during the policy term.
What is the eligibility to buy a child insurance plan?

The eligibility criteria to buy a child insurance plan are, the child must be an Indian citizen, the parent or legal guardian must be an Indian citizen, and the age requirements vary depending on the plan and insurer.

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Disclaimer
- The complete name of Tata AIA Guaranteed Return Insurance Plan is Tata AIA Life Guaranteed Return Insurance Plan - Individual, Non-Linked, Non-Participating, Life Insurance Savings Plan (UIN:110N152V15)
- The complete name of Tata AIA Fortune Guarantee Plus is Tata AIA Life Insurance Fortune Guarantee Plus - Non-Linked, Non-Participating, Individual Life Insurance Savings Plan (UIN: 110N158V14)
- ¹Illustrated premium of ₹20,824/month is calculated for a 21-year-old healthy male including Digital Discount on 1st year premium with a premium paying term of 10 years, policy term of 15 years and premium payment with monthly instalment under Endowment plan option and shall receive the income in the form of lump sum amount of ₹45,27,604 at the age of 36 years. The premium shown is inclusive of the mentioned benefit and is payable only if all premiums are paid as per the premium paying term and the policy is in force till the completion of the entire policy term opted.
- ²Guaranteed Annual Income (GAI) in the Regular Income option is a percentage of one Annualised Premium while in the Whole Life Income option is a percentage of the Total Premiums Paid
- ³Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfilment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implications mentioned anywhere on this site. Please consult your own tax consultant to know the tax benefits available to you.
- No Goods and Service Tax shall be applicable on Individual life insurance products as per prevailing laws. Tax laws are subject to amendments from time to time. If any imposition (tax or otherwise) is levied by any statutory or administrative body under the Policy, Tata AIA Life Insurance Company Limited reserves the right to claim the same from the Policyholder.
- ⁴Guaranteed Addition (Endowment option) defined as a percentage of GMB shall accrue at a simple rate for each completed policy year starting 2^nd policy year, throughout the Policy Term and shall be payable on Maturity or Death whichever is earlier, subject to all due premiums being paid. GA shall accrue @ 7.5% of GMB
- ⁵Tax benefits of up to ₹46,800 u/s 80C is calculated at highest tax slab rate of 31.20% (including cess excluding surcharge) on life insurance premium paid of ₹1,50,000 as per old tax regime. Tax benefits under the policy are subject to conditions laid under Section 80C, 80D,10(10D), 115BAC and other applicable provisions of the Income Tax Act,1961. Good and Service tax and Cess, if any will be charged extra as per prevailing rates. The Tax Free income is subject to conditions specified under section 10(10D) and other applicable provisions of the Income Tax Act,1961. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on above.
- ⁶Guaranteed Income shall be total of Guaranteed annual Income plus Income Booster payable in a year. Guaranteed Income as per the chosen Income Frequency shall commence after maturity till the end of the Income Period, irrespective of survival of the life insured(s) during the Income Period.
- ⁷Return of Premium shall be the sum of Guaranteed Maturity Benefit plus Milestone Benefit and shall be payable at the end of the Income Period, irrespective of survival of the life insured(s) during the Income Period.
- ⁸Available under Regular Income with an Inbuilt Critical Illness Benefit option
- ⁹Source:https://indianexpress.com/article/business/banking-and-finance/education-inflation-tips-to-invest-for-children-education-8880375/
- Unit Linked Life Insurance products are different from traditional insurance products and are subject to risk factors. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns. The underlying Fund’s NAV will be affected by interest rates and the performance of the underlying stocks. The fund is managed by Tata AIA Life Insurance Company Ltd. (hereinafter the Company"). The performance of the managed portfolios and funds is not guaranteed, and the value may increase or decrease in accordance with the future experience of the managed portfolios and funds. Past performance is not indicative of future performance. Returns are calculated on an absolute basis for a period of less than (or equal to) a year, with reinvestment of dividends (if any). All investments made by the Company are subject to market risks. The Company does not guarantee any assured returns. The investment income and price may go down as well as up depending on several factors influencing the market. Please know the associated risks and the applicable charges, from your insurance agent or the Intermediary or policy document issued by the insurance company.
- Tax laws are subject to amendments from time to time. Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfilment of conditions stipulated therein. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implications mentioned anywhere on this site. Please consult your own tax consultant to know the tax benefits available to you.
- The products are underwritten by Tata AIA Life Insurance Company Limited. The plans are not guaranteed issuance plans, and it will be subject to Company's underwriting and acceptance. Whilst every care has been taken in the preparation of this content, it is subject to correction and markets may not perform in a similar fashion based on factors influencing the capital and debt markets; hence this advertisement does not individually confer any legal rights or duties. This is not an investment advice, please make your own independent decision after consulting your financial or other professional advisor.
- This product is underwritten by Tata AIA Life Insurance Company Ltd.
- The plan is not a guaranteed issuance plan, and it will be subject to company’s underwriting and acceptance.
- Insurance cover is available under this product.
- For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale. The precise terms and condition of this plan are specified in the Policy Contract.
- Buying a Life Insurance Policy is a long-term commitment. An early termination of the Policy usually involves high costs, and the Surrender Value payable may be less than the all the Premiums Paid.
- In case of non-standard lives and on submission of non-standard age proof, extra premiums will be charged as per our underwriting guidelines.
- Risk cover commences along with policy commencement for all lives, including minor lives.
- L&C/Advt/2025/Oct/3815