Guaranteed Return Plan for Children in India

Guaranteed Return Plan for Children in India

As soon as a child is born, the parents start to worry about their future, and along with that, the responsibilities of the parents heighten as well. It is very natural for the parents to worry about their child’s future as the inflation rate is rising day by day, so as the expenses of lifestyle. Even the combined income of both parents may not be sufficient to fulfill the dreams of their child. In that scenario, the guaranteed return plans kick in as it not only provides the child with financial security in the case of any unforeseen, unfortunate events but also help him/her to generate an extra flow of income so that they can handle the shock of the event financially. This type of plan offers mental peace to the parents and safeguards the children economically, also helps them to fulfill their future dreams.

Key Highlights Of Guaranteed Return Plan For Children

As the name suggests, it is undisputed that a guaranteed return plan for children has come up with a sack of benefits and facilities, including assured returns on your investments to offer relief to the parents. To know about its advantages, have a look at the below mentions:

  • This type of plan is very much similar to the traditional insurance plans, where the premium amount is fixed at the beginning of the term, and the returns are also pre-decided. Therefore, the insured person knows beforehand how much benefit his/her child is going to accumulate in the future.
  •  This type of plan is not market linked, which refers to the fact that the returns do not depend on the condition of the market. Therefore, the risk factor is almost a zilch. Hence, the parents remain worry-free as there are no fluctuations in the market performance.
  • As the returns are pre-determined, the parents can scheme the future plans for their child. They can also make the financial planner according to that.
  • The returns of such plans will be a bonus along with the return of the premium amount paid towards the policy, and the sum assured.
  • This type of plan is usually pocket-friendly as it comes up at a lower premium rate.
  • Sometimes, the insurers also offer some flexibilities to curtail and plan the policies according to the convenience of the customers so that the children can reap the maximum benefits.

List of Guaranteed Return Plans for Children available in India

Keeping in mind the importance and the growing demand for guaranteed return plans, many insurance companies offer this kind of plan in India. Among them, the most popular and beneficial ones are mentioned in the following table, along with their eligibility criteria.

Name of the planEntry ageMaturity agePolicy termSum assured
Aviva Young Scholar Secure Plan

Parent [Life Insured]: 21years to 50 years


Child [Nominee (Beneficiary)]: 0years to 12 years

Parent: Maximum – 71 years21 minus the entry age of the childPremium payment term

For entry age 0 to 8 of child: 13 minus age of the child


For entry age 9 to 12 of child: 5 years

Bharti AXA Life Child Advantage

Minimum – 18 years

Maximum – 50 years and 55 years


Limited pay – 76 years


Regular pay – 71 years

11 years to 21 yearsMinimum- Rs. 25,000
Bajaj Allianz Young Assure Plan

Minimum – 18 years

Maximum – 50 years

Minimum – 28 years

Maximum – 60 years

10, 15, and 20 years10 times of Annualized Premium
Aditya Birla Sun Life Insurance Vision Star Plan

Minimum – 18 years

Maximum – 55 years

Maximum – 75 years

For Option A – 16 years (maximum of 23 years)


For Option B – 14 years (maximum of 21 years)

Minimum – Rs. 1 lakh
Future Generali Assured Education Plan


Minimum – 21 years

Maximum – 50 years



Minimum – 0 years

Maximum – 10 years

Minimum – 35 years

Maximum – 67 years

17 years minus the age of the child at the time of purchasePremium payable

Minimum – Rs. 20,000 annually

Maximum – No upper limit

LIC’s New Children Money Back Plan

Minimum – 0 years

Maximum – 12 years

Maximum – 25 years25 minus age at entry

Minimum – Rs 1 lakh

Maximum – No upper limit

Guaranteed Return Plans Details

For your better understanding of the plans above, here are the details. Have a look.

1. Aviva Young Scholar Secure Plan

It is a savings-oriented insurance plan that is specially designed to provide annual cash flows to meet educational expenses as the child grows. It also pays out a lump sum at important education milestones for college and higher education. One can also avail of Aviva Term Plus Rider along with this policy to reap maximum benefits.

Key highlights of the plan:

  • This plan allows your child to receive guaranteed annual payouts starting at the end of the Premium Paying Term and thereafter every year until he/she is 17 years old. This may help you in meeting the tuition expenses of your child up to class 12th. You will also receive a lump sum amount when your child turns 18 years. That amount can be used as your child’s college admission funds.
  • You will receive another lump sum amount when your child will 21 years of age. This amount can help your child to pay for the post-graduation expenses.
  • In case of an unfortunate, untimely demise of the life insured, the death benefits will be paid to the nominee or the beneficiary only if the policy is an active policy and all due premiums are paid to date.
  • This is a flexible plan where you can customize the policy according to your preferences, such as you can choose the benefit payouts, the premium payment frequency, and the additional premium.

2. Bharti AXA Life Child Advantage

This child plan is a non-linked, participating, individual, life insurance savings plan that offers you guaranteed payouts at the key milestones of your child’s life. The premium under this plan is of two types – regular pay and limited pay. Along with that, you can also get the benefits of non-guaranteed bonuses and life insurance benefits so that your child remains protected in all ways.

Key Highlights Of the Plan:

  • This plan gives you the freedom to choose between 2 Maturity benefits options, money back option and an endowment option, under this plan at inception according to the needs and career goals of your child.
  • In case of an unfortunate event, all the future premiums are waived off on behalf of the insurer so that your child does not have to face any financial hindrances.
  • This plan also makes you eligible to avail of the tax benefits as per the income tax laws if you qualify the terms and conditions of the insurer.
  • This offers you two rider benefits to choose from to get maximum benefits from the policy. The two rider benefits are Bharti AXA Life Hospi Cash Rider and Bharti AXA Life Accidental Death Benefit Rider.

3. Bajaj Allianz Young Assure Plan

It is a non-linked, participating, life insurance child plan that has come up with guaranteed maturity benefits and guaranteed additions, which ensures that your child’s dreams get fulfilled, even when you are not around. The minimum guaranteed maturity benefit under this plan is Rs. 1 lakh and the premium payment term and frequency are quite flexible and can be chosen as per your convenience.

Key highlights of the plan:

  • There are 3 Cash Installment Options to choose from to match the future financial needs of your child. In the case of female policyholders, there are special discounts are given on the premiums paid to the policy.
  • The plan comes with maturity benefit, death benefit, and accidental permanent total disability benefit.
  • This offers five rider benefits to choose from, and they are, Bajaj Allianz Accidental Death Benefit Rider, Bajaj Allianz Accidental Permanent Total/ Partial Disability Benefit Rider, Bajaj Allianz Critical Illness Benefit Rider, Bajaj Allianz Family Income Benefit Rider, and Bajaj Allianz Waiver of Premium Benefit Rider.
  • This plan makes you eligible to avail of loans provided it has acquired a surrender value.

4. Aditya Birla Sun Life Insurance Vision Star Plan

This plan is designed with the aim of providing regular assured payouts to finance the insured person’s child’s education, and to offer him/her an overall comprehensive financial protection, even when the guardian is not around. You can also grow your savings through bonus accumulation. This plan has come up with two variants, Option A – 4 biannual payouts and Option B – 5 annual payouts.

Key highlights of the plan:

  • In case of the life insured’s untimely and unfortunate demise during the policy term of an active policy, a pre-determined death benefit will be paid to your nominee. The policy will be terminated once the death benefit is paid.
  • Starting from the 5th year after the premium paying term is over, the insured person will start receiving Assured Payouts. These payouts are predefined percentages of the Sum Assured chosen by you only.
  • If the life insured survives the policy period, the maturity benefit is provided to him/her. Also, this plan offers 6 rider benefits to choose from.
  • If you choose to discontinue the policy by not paying the premiums after having paid premiums for at least two full years, your policy will not lapse but continue on a Reduced Paid-Up basis.

5. Future Generali Assured Education Plan

This child plan helps you to save for your child systematically until your child turns 17 years and reaches the stage of graduation or post-graduation. As it is a guaranteed income plan, it offers you three options to receive guaranteed payouts depending on your child’s education milestones so that he/she does not have to face any troubles in fulfilling his/her dreams.

Key highlights of the plan:

  • Under this plan, you can pay the premiums annually or monthly. And the premium payment term will be similar to the policy term.
  • The policy will take care of your child’s financial needs in case of the unfortunate and untimely demise of the insured person.
  • Under this plan, you are eligible to avail of the tax benefits as per the prevailing tax laws.
  • You can also strengthen your plan by opting for riders that cover you against accidental death and/or accidental total and permanent disability.

6. LIC’s New Children Money Back Plan

It is a Non-linked, Participating, Individual, Life Assurance money-back plan that is specially designed to cater to the educational, marriage, and other needs of growing children

through Survival Benefits. In addition, the policy also participates in the market profits and depending on the Corporation’s experience of the profits, the life assured is entitled to receive Simple reversionary Bonuses only if the policy is an active policy.

Key highlights of the plan:

  • This plan offers a death benefit, survival benefit, and maturity benefit.
  • To strengthen this policy, one can also opt for the rider benefit available under this plan, namely LIC’s Premium Waiver Benefit Rider.
  • One can receive the death benefit and maturity benefit in installments, instead of receiving it as a lump sum amount. In that case, the installment options are monthly, half-yearly, quarterly, and yearly.
  • For this policy, the Premiums can be paid regularly in yearly, half-yearly, quarterly, or monthly mode (through NACH or through salary deduction (SSS) only) over the premium paying term of the policy.

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