RESUME APPLICATION PAY PREMIUM
Fund Performance

Fund Performance

Knowledge Center

Knowledge Center

About Us

About Us

Tools and Calculators

Tools & Calculators

Quick links

Mobile (Download app)
  • Webpages
  • Documents
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment

For NRI Customers

(To Buy a Policy)

(If you're our existing customer)

For Online Policy Purchase

(New and Ongoing Applications)

Branch Locator

For Existing Customers

(Issued Policy)

Fund Performance Check

RESUME APPLICATION PAY PREMIUM

What do you want to do?

Quick links

Mobile (Download app)

Download HDFC Life App

Buy plans, track your policy, make renewal payments & monitor fund performance with HDFC Life App, Download Now!

Apple Logo Go to Google Play Store

Promise for a Lifetime: Choosing the Right Child Savings Plan

down-arrow
Promise for a Lifetime: Choosing the Right Child Savings Plan
March 04, 2025

Table of Content

 

From the moment you hold your child, life changes. It feels bigger, love feels deeper, and priorities shift, forever. You make a silent promiseto always protect them, to give them the best, to ensure they never lack opportunities.

But as every parent soon realises, love alone isn’t enough. Dreams need a foundation, and in today’s world, that foundation is financial security. Education, hobbies, career ambitions, a dream home—your child’s future is shaped by the choices you make today. And among those choices, selecting a child savings plan is one of the most important.

New parents often find themselves overwhelmed. Which plan should you choose? What if you make the wrong decision? How do you ensure your child’s dreams are protected, no matter what? These are questions every parent asks. The good news? The right child savings plan gives you clarity, control, and confidence in securing your child’s future. Let’s talk about how to choose the best one.

More than just saving, its securing a future

Many families believe in planning ahead. From gold jewellery to land investments, parents have always sought ways to secure their child’s future. But times have changed. Education today can be an expensive affair, and aspirations are soaring. 

The cost of raising a child in India varies significantly based on factors like location, lifestyle, and personal choices. A study estimates that expenses from birth to 18 years can range between ₹30 lakh and ₹1.2 crore*, with urban families typically spending more than those in rural areas. A solid financial plan is no longer a luxury—it’s a necessity.

The right child savings plan is not just about putting money aside; it’s about making sure that funds are available when needed. It’s a way of saying: “No matter what happens, my child will get the life they deserve.”

A well-chosen plan takes the burden off your shoulders. Instead of worrying about rising costs, you can focus on what truly matters—watching your child grow, dream, and succeed.

5 things to keep in mind when choosing a plan

There’s no one-size-fits-all answer, but some factors can guide you towards the right choice.

1. Start early, secure more

The best time to invest in a child savings plan? The moment your child is born. Early investments mean lower premiums and more time for your money to grow. A plan started when your child is one year old will require significantly less investment than one started when they are ten. The sooner you begin, the bigger the financial cushion.

2. Guaranteed benefits vs. growth potential

Some parents prefer stability. Others want higher returns. Guaranteed benefit plans ensure fixed payouts at crucial life stages—college, post-graduation, or marriage. Market-linked plans, on the other hand, offer potential for higher returns over time. Choosing between them depends on your comfort with risk. Many parents opt for a combination—assured security with a growth component. This way, you get the best of both worlds: a solid foundation and the potential for additional wealth creation.

3. Life cover

No one likes to think about uncertainties, but responsible parenting means being prepared. A good child savings plan doesn’t just accumulate money—it protects the dream even in your absence. If something were to happen to you, a plan with life cover ensures your child still receives the expected payouts. The best plans also offer a waiver of premium feature, where all future payments are taken care of, so your child’s financial future remains intact.

4. Choose flexibility

Life changes, and so do financial situations. Choose a plan that allows flexibility—whether it’s adjusting premium amounts, selecting payout timelines, or making withdrawals when needed. Some plans even offer milestone payouts, ensuring funds are available exactly when required.

5. Inflation protection

The cost of education in India has risen sharply. An MBA today costs approximately 5–15 times+ more than it did two decades ago. By the time your child reaches university, expenses will be even higher. A child savings plan should account for inflation, ensuring that the money you invest today holds its value in the future.

This decision matters more than you think

As parents, we often focus on day-to-day expenses—school fees, clothes, birthday celebrations, vacation. But what about the bigger picture? When your child is 18 and ready to chase their dreams, will you have the resources to support them without financial stress?

Many families, despite good intentions, struggle when the time comes. Some take loans, others dip into emergency savings. A well-planned child savings plan removes that stress. It gives your child the freedom to choose their dreams, rather than compromise due to financial constraints.

Think of it as a gift—one that will matter more than the first bicycle, the first school bag, or the first smartphone. When your child steps into adulthood, they do so with confidence, not financial worry.

Right plan for the right future

Parenting comes with endless decisions—school choices, extracurricular activities, even which toothpaste to buy! But choosing a child savings plan is one decision that makes all the difference.

It’s more than an investment. It’s peace of mind. It’s knowing that no matter what life throws your way, your child’s dreams will always have a strong foundation.

So take that step today. Because a child savings plan isn’t just about securing money—it’s about securing a future filled with possibilities.

Dreams alone don’t come true—but the right plan can turn them into reality. Your child’s dreams are priceless, and with the right financial support, they never have to remain just dreams.

Sources:

*https://thelogicstick.com/the-cost-of-raising-a-child-in-india/#:~:text=The%20budget%20for%20raising%20a,on%20urban%20or%20rural%20settings.

+https://www.business-standard.com/finance/personal-finance/education-costs-double-every-6-yrs-how-to-beat-inflation-and-invest-for-your-child-123072600265_1.html

Related Articles

ARN: ED/02/25/21291

Term Plan Articles Term Plan Articles

Investment Articles Investment Articles

Savings Articles Savings Articles

Life Insurance Articles Life Insurance Articles

Tax Articles Tax Articles

Retirement Articles Retirement Articles

ULIP Articles ULIP Articles

Health Plans Articles Health Plans Articles

Child Plans Articles Child Plans Articles

Popular Calculators Popular Calculators

Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

LinkedIn profile
Author Profile Written By:
Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

LinkedIn profile
Reviewed By Reviewed By:

Here's all you should know about life insurance.

We help you to make informed insurance decisions for a lifetime.

Promise for a Lifetime: Choosing the Right Child Savings Plan

Promise for a Lifetime: Choosing the Right Child Savings Plan

Get expert advice on choosing the right child savings plan as a parent to secure your childs financial future, provide better opportunities, and ensure long-term stability.

Best monthly saving schemes for child's education

Building a Financial Safety Net for Your Child, this Children’s Day.

How to use an online savings plan to secure your child's education fund?

Build a secure future for your child's education fund with an online savings plan. Discover smart strategies to invest wisely and ensure a brighter academic journey.

How to use an online savings plan to secure your child's education fund?
What Is Children Education Allowance? Previous
Child ULIP Savings Insurance Plan | HDFC Life SL YoungStar Super Premium Next
HDFC life
HDFC life

HDFC Life

Reviewed by Life Insurance Experts

HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER

We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

Popular Search

Popular Searches