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Child Plans

How Ready Are You to Cope with Ever-Increasing Education Inflation?

Every parent strives to provide the best facilities to their children. When it comes to education or standard of living, no parent likes to compromise. According to a survey, more than 60% of Indian parents believe that education and career are the most important objective in their children’s lives. Nevertheless, for parents, the most important challenge is to lay aside sufficient money for their child's college or higher education.

In today’s times, the annual fees for admission into the pre-primary section in a reputed school ranges between Rs 75,000 and Rs 1,25,000. In the early 2000s, the entire cost of acquiring an MBA Degree was Rs 4 lakhs, and now the same institution charges Rs 25 lakhs. Considering inflation, by 2030, this figure will easily reach Rs 60 - 70 lakhs. Mind you, this data is only for a single child.

Here is a tabular representation of the current and future fee structures of a few courses that will give you the reason for planning your investments when it comes to fulfilling your child’s dream.

Education Streams

Cost in 2020

Cost in 2030

School Annual Fees

2 lakhs

6 – 7 lakhs


10 lakhs

30 lakhs


25 lakhs

70 lakhs

Commercial Pilot

60 lakhs

2 crores


15 lakhs

50 lakhs

Suggested Reading: How Much Does It Cost To Raise A Child?

Moreover, do you think you are prepared to raise your child, especially with the growing cost of education and healthcare? God forbid, if something happens to you, have you made any arrangements for your child’s future?

Do not get bogged down with these numbers. The first step is to START.

To ensure your child’s future both in your absence and presence, investing in child plans is highly recommended. A child plan acts as a strong financial support system in all the major events of your child's life, like school, college, graduation, post graduation, and so on.

How Does a Child Plan Work?

In return of the premiums paid by you, a child plan gives regular pay-outs at given intervals of time along with tax benefits under Section 80(C) and 10(10D). And if you survive throughout the policy term, the plan pays a fixed maturity benefit.

In case of your untimely demise, the beneficiary / your child gets a lump sum for your child’s future. All the future premiums are waived off, and the plan pays a fixed maturity at a fixed age of your child in tranches or lump sum as you decide or as per the plan.

When Should You Buy a Child Plan?

It is always advised to start investing in a child plan as early as possible. If you invest when your child is 10 years old, the plan becomes futile as the years left for money to compound and grow are less. Many people have this misconception that a child plan can be purchased only after the child is born. Child plans are designed in such a way that you have to start investing in them when your wife has conceived or maximum up to 2 years after the child is born, so that the benefits or the pay-outs are received exactly when they are needed. Nevertheless, it's never too late to buy a child plan.

Things to Look Out for while Buying a Child Plan

  • When opting for a child plan, the parent should be the policyholder and not the child.
  • You (the policyholder) should opt for a Premium Waiver as an in-built benefit in the plan. If not available as an in-built feature, you should opt for additional riders that waive premiums in case of the death of the policyholder.
  • Choose monthly or annual pay-out modes as lump sum money can be spent on some other, less important purposes.
  • Disclose all medical conditions while applying for a child plan.

It might be easier to say that planning helps you to control your financial decisions and build a corpus for your future. But when you think about your child’s education and future planning, it is required to start early and regular investments to save the hassle you may face in the future.

To find the most suitable child insurance plan to secure the future of your little ones, give us a ring at 86559-86559 or write to us at and we will be happy to help.



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