Know About the Best Investment Plans for Children's

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

Best Investment Plans for Children - Secure Your Child's Future

Best Investment Plans for Children - Secure Your Child's Future
  • 14th Apr 2022 |
  • 6,797

Many parents believe that child investment plans are the need of today. Given the rate at which inflation is noting an upward trend, your child’s future and financial security need to have a dedicated investment made in their name. The best solution to securing your child’s future financially is to look for the best child investment plan as per your financial goals and futuristic plans for your child. Child investment plans come with added benefits and have additional support from the government and insurers.

This article will discuss the best child investment plans and focus on all the aspects of a children’s investment plan. Moreover, it will also run through the best investment plan for child future and the best one-time investment plan for your children. Also, in India, some financial tools have added benefits for girl children, specifically dedicated to empowering them financially. Thus, we will also take a brief look at the best investment plan for girl child in India.

Best Investment Plan for Child’s Future

The financial market, specifically in the case of insurance and investment policies, is highly saturated, and you will get a long list of options to pick from. And this vivid availability makes it very difficult for the parent to choose the correct and the best child investment plan.

Here is a list of child investment plans that might cater the best to your child’s needs:

1. ULIP for children (Unit Linked Insurance plan)

Unit Linked Insurance Plans are a great investment option for your children; especially for girls, as they yield higher returns. ULIPs are the financial plans that offer both the security of insurance and the opportunity of investment in the markets. In addition to this, they offer triple benefits as a child investment plan.

  • In case of the demise of the parent before policy maturity, the insurer will pay the further premiums of the policy.
  • The child will receive a monthly income/allowance to support his education in the absence of parents.
  • The insurance company will allocate the child a lump sum payout on parents’ demise to help them meet the daily expenses.

2. SIP (Systematic Investment plan)

SIPs are mutual fund schemes that serve as one of the best child investment plans. In SIPs the bank invests the amounts in market funds like debts, equities, or hybrid funds, which allows them to grow the income to a large extent. SIPs are a great choice for parents as the best one-time investment plan for child as they ensure a better return on investment. However, SIPs are market-linked financial products that are influenced by market fluctuations and performance.

3. Sukanya Samriddhi Yojana(SSY)

SSY or Sukanya Samriddhi Yojana is a savings scheme available for girl children in India. Being a government scheme, it is highly reliable and preferred by many as the best investment plan for girl child in India. As a parent, you can open this scheme in the name of your daughter in the bank and yield a good interest rate of approximately 7% to 8%, subject to changes. The account will mature once the girl turns 21-years old. The minimum investment amount for this scheme is ₹1000/- and the maximum is ​​₹1.5 lacs.

4. Debt Fund - Market fund (One-Time investment option)

This option is preferred by parents as the best investment plan for child future because some of the debt mutual funds offer better returns than simple bank deposits. Additionally, they are more tax-efficient making them a much better choice. You can opt for Debt Funds if you are looking for a long-term investment goal to support your child’s future.

5. PPF - Public Provident fund (long term traditional plans)

In the list of best child investment plans, PPF is a key player as a long-term investment that is highly secure. In PPF funds are locked in for 15-years and you can invest a minimum of ₹500 to ₹1.5 lacs per annum. PPF on average generates returns at a rate of interest ranging from 8% or above. You can open PPF accounts at banks and post offices.

It is highly advised that parents understand the options mentioned above before diving deeper into and selecting one of them. Once you have selected the type of child investment plan, you should pick a policy based on the premium amount and features.

Kotak e-Term Plan


  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492


Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Ideal Features of a Suitable Term Plan - Act Now for a Stress-free Future

Which Death Type Does Your Term Plan Not Cover?

8 Benefits of Term Insurance You Should Know

Different Types of Premium in Term Insurance

How Much Cover Should I Take In A Term Plan?

Understanding Term Insurance Riders

How To Change The Nominee in Term Insurance?

Term Insurance – Why You Must Include In Your Financial Planning?

Is It Good To Buy A Term Insurance Plan In 2022?

Why Should You Not Take A Term Plan Without Medical Test in India?

Insuring yourself against Ill Health with a Critical Illness Rider

कोविड -19 बूस्टर खुराक के दुष्प्रभाव

What Types of Deaths Are Covered in a Term Insurance Plan?

Individual Life Insurance vs. Group Term Life Insurance

All About Term Insurance Inbuilt Coverage

Different Types of Protection Plans

Why Buy Term Insurance Plan With a High Cover?

Term Insurance: Smokers vs Non-Smokers

What Happens if you Hide Facts in your Term Insurance?

Is There Any Tax Benefit on Term Insurance?

4 Methods to Calculate How Much Term Insurance You Need

5 Term Insurance Benefits for Single Women

Is ₹1 Crore Term Insurance Good Enough Cover?

6 Types of Death not covered in Term Insurance Plan

Are The Add-ons and Optional Features of Term Insurance Plans Actually Beneficial?

Protection for your family

Term Insurance: Most Common Term Insurance Myths Explained | Kotak Life

Does Term Insurance Cover Accidental Death?

10-Year Term Life Insurance Policy - Explained in Detail

Is Term Life Insurance Plan an Investment or Expense?

Do You Need Term Insurance Cover After Retirement?

What Happens to Term Insurance Plan With No Beneficiary - Kotak Life

Why Surrendering Your Term Plan Policy In The Final Phase Maybe A Bad Idea?

What Should You opt for - Limited or Premium Pay?

Planning For Son or Daughter's Wedding

Why Term Plan Should Be The First Step To Securing Your Future?

Term Insurance Plans and Policies for Smokers

Does Your Term Insurance Plan Cover Death Due to COVID-19?

Is a Term Insurance Policy Portable?

Reasons You Need Term Insurance Plan as a Self-Employed Person

Insurance Policy for Housewife In India

How Not To Get Your Term Insurance Claim Rejected

Buying A Term Insurance Plan? Take These Factors into Account

9 Most Frequently Asked Questions on Term Insurance

Difference Between Term Insurance vs Life Insurance

Why 1 Cr Term Plan Is Necessary For Family?

Why Spending Time with Friends is Essential for Your Mental Health?

Busting Myths and Facts About Term Insurance Policies

Calculating Term Insurance Premium

Why Premium Amount for Term Insurance is So Low?

Make Your Online Term Plan Your Family's Monthly Pay Cheque

How Much Term Life Insurance Cover Do I Need in India?

What is Form 16, Form 16 part A, Form 16 part B, Information Required and FAQs

Why Should New Parents Buy Term Life Insurance?

What is the Right Term Period For Term Insurance Policy? Here's How You Should Choose!

Everything About Claim Settlement Ratio for Term Insurance

What is Critical Illness Policy

Can Term Insurance Plans Be Purchased As A Gift?

All you need to Know about Term Insurance Plans for Housewives

Is it a Good Time to Buy Term Insurance During the COVID-19 Pandemic?

Term Insurance: What Happens When You Don’t Pay Your Premiums?

Importance of Term Insurance at Every Stage of Your Life

Planning For Children's Future

What is a Joint Term Insurance Plan? Key Benefits of Joint Term Plan

Is term Insurance Needed for People With No Dependents?

Cost of Term Insurance Likely to Increase Soon

What are incremental term insurance plans?

8 Things To Do After Buying Term Insurance

Why Married People Should Buy Term Insurance Under MWP Act?

Eligibility Criteria for Buying Term Insurance in India

Key Differences Between Term Insurance, ULIPs, And Health Insurance

How to Surrender Term Life Insurance When you have No Liabilities

6 Reasons That Make Term Insurance a Must Buy

Why Buying a Term Plan Is Smarter Than Traditional Life Insurance Products

8 Factors to consider before choosing a Critical Illness Insurance

What Is the Correct Age to Buy Term Insurance?

Why is it important to buy term insurance plan?

Insuring Against Accidents with an Accidental Death Insurance Rider

Why Should You Add a Rider to a Term Insurance Plan?

What is a short term insurance policy?

Comparing Term Plans – What Should You Look Out For

Can I Get Term Insurance on Behalf of My Spouse?

Key IRDAI Regulations That Changed Face Of Term Insurance Industry In 2020

5 Reasons to Buy Term Insurance When You are in Your 30s

How to Compare Term Insurance Online

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

What Are the Best Term Insurance Plans for Planning Retirement?

Buying A Term Insurance? Don't Ignore the Claims Settlement Ratio

How To Choose the Right Term Insurance Plan?

Term Vs. Whole Life Insurance: Which One You Should Buy in India?

How to Ensure That Your Term Insurance Claims Are Never Rejected?

How To Calculate The Amount Of Term Life Insurance You Need?

Is Life Insurance Investment Worthy Enough

Why Should You Buy Term Insurance in 2022?

Do I Need to Give a Medical Test for Term Insurance in India?

Why Buy Term Insurance Even at Rising Rates?

What is Insurance Premium - A Detailed Guide

Steps on How to Buy Term Insurance Online

4 Things To Expect From Your Term Insurance Plan in India

Can I Buy Term Insurance for a COVID-19 Patient?

What are the Documents Required for Term Insurance Plan?

Term Insurance Age Limit – Term Plan for All Age Groups

Why does every working woman need life insurance?

Can Non-Resident Indians (NRIs) Buy Term Insurance In India?

Why Term Insurance Is Important in times of COVID-19?

While Buying Term Insurance Compare Features, Not Just Premiums

Advantages & Disadvantages of Term Insurance in India

Term Insurance with Critical Illness

Side Effects of Covid-19 Booster Doses

Online vs Offline Term Insurance: Which Is The Better Option To Buy

Insuring Against Disability With Disability Insurance Rider

When is the Right Time to Buy Term Life Insurance Policy for Yourself?

Term Insurance With Riders In India

4 Reasons Why You Need Critical Illness Cover

Advantages of Buying Term Insurance in Your 50s

Why should single women purchase term life insurance?

Tips to Choose the Right Term Period for Term Insurance Plan

Insuring Protection Against Death With Death Insurance Rider

Term Life Insurance Plan for Smokers vs Non-Smokers

How Much Term Insurance Do I Need

Should You Buy a Term Plan After 40?

How To Choose the Right Sum Assured Under a Term Plan?

Top 3 Reasons Why You Should Buy A Term Plan Now

Should You Have Multiple Term Life Insurance Policies?

How Does Term Life Insurance Work? Learn the Benefits

What Are Insurance Riders and How to Choose Them in a Term Plan?

9 Ways to Help Family Members in Financial Trouble

Why Term Insurance Is Better Than ULIP?

What All Documents Required For Term Insurance In India?

Term Insurance Basics You Should Know

Can Senior Citizens Avail Term Insurance?

Endowment Plans vs Term Plans: Understanding the difference

Should Youngsters, Working Couples Buy Term Insurance Plans?

How to Identify Term Insurance According to Your Needs?

Know How to Invest at Every Age for Larger Returns

What is Term Insurance - A Complete Guide

10 Ways to Get Your Kids Involved in Your Healthy Lifestyle

What Is a Passive Income? Why Should You Use It to Buy a Term Plan?

Increasing Term Insurance and Riders

Do Beneficiaries Pay Taxes on Term Insurance?

5 Benefits of Early Retirement Planning

Tax Benefits of Term Insurance in India

10 Ways to Mentally Refresh After a Stressful Day

Term Plans are Definitely Cheaper than You Think!

What Should Be The Duration Of Your Term Plan in India?

Can You Increase Your Term Insurance Cover?

Term Insurance Calculator - Everythng You Need To Know

Choosing Riders for Insurance Plans

How Does A Term Life Insurance Work in India?

Can A Housewife Buy a Term Insurance Plan - All You Need to Know

What Is a Renewable Term Insurance Policy?

Term Plan with Spouse Cover

Gift Your Father A Term Insurance Plan This Father's Day

How to Buy 1 Crore Life Insurance Policy Without Medical Test

Ensure Protection Against Death, Disease & Disability With Life Insurance

Can I Make Changes to My Term Insurance Policy Post Purchase?

Is Group Term Life Insurance Provided By Employer Sufficient?

5 Things To Consider While Buying Term Insurance Plan

Which Term Insurance to Choose: Lump Sum or Staggered Pay-out Plan?

Make Your Online Term Plan Your Familys Monthly Payout

Can I Extend the Tenure of My Term Insurance Plan?