A child's education plan is a savings plan for your child’s future educational needs. This plan is a mix of savings, investment, and protection. They are long-term investment plans. You can pay a premium monthly, quarterly or yearly or even a single lump payment at a set time. If the parent (policyholder) passes away, the nominee receives the life cover amount. 

Features of Child Insurance Plan: 

1. Lump Sum Amount - In case of the policyholder’s death, the company provides a lump-sum amount to the child. 
2. Partial Withdrawal - The plan allows partial withdrawal when your child requires it to reach their milestones
3. Tax Benefits - Child Insurance plans come with tax advantages under Section 80C of the Income Tax Act.
4. Waiver of Premium - This add-on waives future premiums if the policyholder (parent) passes away.  

Education costs are rising every year. By investing in the best child education plan at the right time, you can have peace of mind knowing your child’s future is secure.

The child education plan builds a safety net for your child’s future. This plan is structured to provide funds in cases of emergencies. Securing a good career, income, and peaceful standard of living requires education. 

Here are a few benefits of investing in a child’s education plans. 

1. Unexpected Loss of a Parent - A child’s plan is like a lifeline. Most child plans come with waiver plans, which waive the premium, and the policy stays active. This feature secures funds to achieve milestones. 
2. Partial Withdrawal - Many partial withdrawal plans are flexible, which allows parents to access some amount before the policy matures. The eligibility of partial withdrawals is typically allowed after a five-year lock-in period. Withdrawal limits for some policies are 25% of the fund value, provided at least one year's premium stays in the fund.
3. Education Support - Education is getting costlier each year. From tuition fees to supplies, education will get more expensive in future. Child Education plan becomes a helping hand in the child’s academic journey. 
4. Tax Benefits - This plan has a tax advantage for its parents. The premiums you pay are eligible for deduction under Section 80C of the Income Tax Act. This helps you save more while growing your child’s education fund. This is a dual benefit for your premiums. 
5. Gives Guaranteed Returns - Endowment plans give a lump sum maturity benefit. These plans provide you with advanced guaranteed returns for the child’s milestones, such as tuition fees, extracurricular activities, or professional courses. This ensures your child’s financial security is protected. 
6. Long-term Savings - Child Plans act as a long-term investment. Money compounds in years and creates a substantial corpus by the time your child needs it. Major expenses like college fees, books, and overseas studies are covered without any worry. This gives parents peace of mind about their child’s future. 

1. Section 80 C 

As per Section 80C, parents can get tax deductions up to 1.5 lakh annually. This benefit is available if the policy’s sum assured is at least 10 times the annual premium paid. Paying premiums for a child insurance plan can help you save a ample of amount on your taxes.

2. Section 10 (10 D)  

Under Section 10 (10 D) of the Income Tax Act, the bonus and maturity amount from a child insurance plan is free from taxes, subject to rules. Remember, the tax benefits are subject to change according to the tax laws. 

3. Section 80DDB and Section DD

To claim tax benefits under this section, children with chronic illnesses such as neurological disorders or kidney diseases must submit a doctor’s prescription along with tax documents. 

4. Section 80DD 

If the child is dependent, Section 80DD offers a flat tax reduction for medical checkup, maintenance and rehabilitation. A child with normal disability gets a 75,000 flat deduction, and a child with severe disability gets 1,25,000. This gives financial relief to families to claim. 

5. Section 80E 

Parents can claim a tax deduction based on the interest paid for an education loan. It’s available for up to 8 years from the start of repayment, which helps ease the financial burden of higher education. 

Yes. You are eligible to buy a child plan for a 10 or 15-year-old. Purchasing a child's plan at the right time compounds funds and ensures your child's financial security. 

1. Buying Options: You can purchase online or offline plans directly from a company’s website or by visiting their office. 
2. Maturity Coverity: These plans are designed to give coverage to child till they achieve important milestones in their life. 
3. Premium Options: Depending on the child’s age and financial situation, you can choose a suitable premium payment option. Regular payments are spread across the policy, such as monthly, quarterly or semi-annually. 
4. Core benefits remain intact, such as guaranteed returns, partial withdrawals or tax advantages. This ensures your child’s financial security.