Buy a Life Insurance Plan in a few clicks
Insurance and Investment in one plan.
A plan that works like a term plan, and Earns like ULIP Plan
Thank you
Our representative will get in touch with you at the earliest.
A ULIP for child education is a strategic investment that includes a life insurance shield, specifically designed to fund your child's academic future. It provides disciplined wealth creation, building a dedicated corpus for ever-increasing higher education expenses. The integrated insurance component guarantees their educational goals are financially protected, even in your absence.
A ULIP Child Education Plan is a tailored financial product that combines two key elements, investment and life insurance, with the specific goal of funding your child’s future education. In this plan, you pay regular premiums. A portion of your premium is allocated towards providing life insurance coverage. The remaining portion is invested in market-linked funds of your choice, such as equity funds. The value of your investments can grow over the policy term, depending on the performance of these funds.
Over the years, your investments aim to build a significant sum of money, often called a ‘corpus’. This corpus becomes available at policy maturity, which can further be used for your child’s education. The plan helps you systematically save and grow money.
The best ULIP plan for child should offer a unique combination of investment and insurance features tailored specifically for securing your child’s educational future. Let us understand how a ULIP plan for child education works in a simple and structured way:
There are different ULIPs available in the market that cater to different needs. When choosing a ULIP specifically for your child’s education, the single most important feature to look for is a plan that includes a waiver of premium rider. In the event of the policyholder’s death during the policy term, this rider waives all future premium obligations. The policy itself remains active, allowing the investment to continue to grow. At maturity, your child receives the full fund value to pay for their higher education.
A ULIP combines investment growth with insurance coverage in one financial instrument. This integrated structure provides a systematic way for you to fund your child’s future academic costs.
A ULIP is engineered for a specific purpose. You define the financial target and the exact timeline for your child’s education, and the plan is then built to meet that precise goal. This framework instills a required savings discipline, building a dedicated fund to cover education expenses when they are due.
Your financial life changes, so a ULIP for child education is built for adaptation. You have direct command over the premium amount, payment schedule, and the policy’s maturity. This includes the power to shift capital between investment funds, allowing you to react to market changes or your own evolving strategy.
The insurance coverage within a ULIP is its core guarantee. If death or disability occurs, the insurance benefit is immediately triggered to complete the funding target. This results in a fully funded education corpus, delivering the exact amount you planned for and securing your child’s academic future.
A ULIP for child education offers significant tax advantages for parents. Your premium payments can be claimed for deductions under Section 80C of the Income Tax Act, which reduces your yearly taxable income. The final benefit payout upon maturity or death is also generally tax-exempt under the guidelines of Section 10(10D).
The waiver of premium rider is a fundamental safeguard for the education fund. If a specified disability or critical illness prevents the policyholder from making payments, the rider takes over. Future premiums are waived entirely. The policy does not lapse; instead, the investment continues to grow and the insurance cover remains fully active.
Investing in a ULIP for your child’s education is not just a savings plan; it is a strategic move that offers a comprehensive approach to securing their academic future. Here is how a ULIP can be uniquely beneficial:
With ULIP, regular premium payments are channeled into market-linked investments, with the aim of growing steadily over the long term. This systematic approach allows you to cultivate a substantial education corpus, brick by brick, ensuring that when the time comes for higher studies, you have a ready fund to draw upon.
The cost of education often rises over the years due to inflation. ULIPs, particularly those with equity fund options, offer the potential for returns that can outpace inflation. This helps ensure that the money you save today will still be sufficient to cover future education expenses, protecting your child’s aspirations from the rising cost of education.
While the primary goal of a child ULIP is education funding, many plans offer partial withdrawal options after a specific lock-in period. In unforeseen medical emergencies, this liquidity can provide financial assistance to avail urgent medical treatment.
As your ULIP policy matures and accumulates value, it can become a tangible asset. Many financial institutions accept ULIP policies as collateral for securing loans, providing an added layer of financial assistance.
ULIPs offer attractive tax advantages under the Indian Income Tax Act. Premiums paid can qualify for deductions under Section 80C for up to ₹1.5 lakh annually, reducing your taxable income. Furthermore, the maturity proceeds are often tax-exempt under Section 10(10D). You can also get tax exemption for a duration of 8 years on the interest paid for education loans.
Here are the primary reasons why a ULIP is a necessary investment for your child’s future:
A ULIP for child education merges investment and insurance into one instrument built to create a dedicated education fund. Selecting the right plan is a matter of carefully assessing these key factors:
Your investment horizon is the total timeframe you have until your child requires the funds for their education. A longer time horizon is a clear strategic advantage. It justifies selecting equity-oriented ULIPs, which are structured to deliver higher, inflation-beating returns over the long term.
Your personal tolerance for market volatility is a critical factor in your decision. An investor who is comfortable with higher risk to achieve greater returns will choose an equity-oriented ULIP. An investor who requires capital protection and stability will choose a debt-oriented or balanced ULIP.
You must understand and scrutinize every charge within the ULIP, from premium allocation and policy administration to fund management and mortality fees. Comparing the fee structures of different plans is non-negotiable. A plan with competitive and transparent charges protects your investment returns from significant erosion over time.
The right ULIP for child education must provide tactical flexibility. Look for a diverse range of fund options, the freedom to switch between funds in response to market changes, and the ability to make partial withdrawals. Your plan must have a comprehensive feature set that directly matches your investment goals.
The life insurance component of the ULIP is its core guarantee. The life cover amount you select must be sufficient to fund your child’s complete educational path and also provide for your family’s ongoing financial needs should you no longer be there.
A ULIP for child education is a strategic decision to secure your child’s academic future. It is the only financial instrument that combines investment growth and life insurance protection. This structure is a complete financial shield for all future education costs. You get tactical control through features like partial withdrawals and fund switching. The significant tax advantages add another layer of security. The final advice for parents is direct: start the plan early, choose it wisely, and build an education fund that grows as your child does.
1
A ULIP plan builds a dedicated fund for your child’s future education while providing integrated life insurance, creating a robust financial safety net. The plan’s structure is a guarantee; it ensures that should something happen to you, your child’s educational funding continues uninterrupted.
2
Yes, a ULIP is the ideal instrument for this objective. It is the only tool that merges investment growth, insurance cover, and tax benefits into one plan. You have full command over the investments, with the freedom to select funds and alter your approach whenever you see fit.
3
No, after the mandatory five-year lock-in period ends, the funds are unrestricted for educational use. The entire accumulated corpus is available for partial or full withdrawals to pay for educational expenses as they occur.
4
A ULIP for child education occupies its own category. No other single instrument combines active wealth creation through investments with the hard guarantee of a life insurance policy.
5
The fund’s growth is driven by the discipline of consistent, long-term investing. The power of compounding works on your regular payments to grow the fund over time. A common strategy is to start with higher-growth funds and later transition to more conservative options as the need for the funds approaches. Many plans also include a waiver of premium feature to protect the fund.
6
Yes, you can extend the policy term and make changes to the investment strategy of a ULIP for child education to align with evolving education goals. ULIPs offer flexibility to adapt to changing circumstances and requirements.
Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.
Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors
In this policy, the investment risk in the investment portfolio is borne by the policyholder.
Kotak e-Invest
Features
Ref. No. KLI/22-23/E-BB/521
The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The content has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Further customer is the advised to go through the sales brochure before conducting any sale. Above illustrations are only for understanding, it is not directly or indirectly related to the performance of any product or plans of Kotak Life.
Grow your wealth effortlessly with our ULIP plan options now!
