ULIPs for Child’s Education

2. HDFC SL Youngstar Super Premium:

You can choose the amount you want as the sum assured based on the premiums you are willing to pay annually. You have the convenience to choose the premium amount as well where there is no ceiling on maximum premium.

3. Max Life Shiksha Plus Super:

This is a ULIP from MAX Life that provides comprehensive life insurance coverageincluding Family Income Benefit and Funding of Future Premiums in case of your (same as Life Insured) death.

4. SBI Life -Smart Scholar:

This ULIP is designed to secure your child's future. The plan provides dual protection including market linked returns and investments with benefits such as partial withdrawals being allowed during the policy term.

5. Kotak Head Start Child Assure:

This ULIP from Kotak intends to secure your child's future along with great returns to your investments. This also includes a planned corpus when your policy reaches its maturity date.

Benefits of ULIPs for Child’s Education 

The ULIPs for child’s education offers several benefits such as: 

1. ULIPs provide life cover, ensuring financial security for your child in case of any circumstances 

1. ULIPs are ideal for long-term goals like funding higher education, as they offer the potential for higher returns through equity investments 

1. Premiums paid are eligible for tax deductions up to Rs.1.5 lakh per annum 

1. ULIPs encourage regular savings through periodic premium payments, ensuring you stay on track to meet your child’s education goals 

1. Some ULIPs allow partial withdrawals after the completion of the lock-in-period (five years), which can be used to fund education-related expenses 

1. You can choose the sum assured based on your child’s future education needs and your financial capacity. 

Features of ULIPs for Child’s Education 

The following are the features of ULIPs for child’s education: 

1. Child Education-Specific ULIPs: Some insurers offer ULIPs specifically designed for child education, with features like guaranteed payouts or scholarships 

1. Systematic Transfer Plan (STP): As your child’s education goal approaches, you can systematically transfer funds from equity to debt to reduce risk and preserve capital 

1. Transparency: ULIPs provide regular updates on fund performance, NAV (Net Asset Value), and charges, ensuring transparency 

1. Goal-Based Planning: ULIPs allow you to align your investments with specific goals, such as funding your child’s undergraduate or postgraduate education 

1. Top-Up Facility: You can invest additional amounts over and above the regular premium to boost your corpus. 

GST of 18% is applicable on life insurance effective from the 1st of July, 2017