Khota Paisa

Which Child Plan? A Comparison of ULIP based Child Plans

Posted in Child Insurance by khotapaisa on May 26, 2009

Child ULIP is an attractive investment option for child education planning. Here I am posting a comparative analysis of few selected child ULIP plan available in market. After going through a big list of child ULIP plans available in market, I selected the following three for comparative analysis.
– SBI Child ULIP Plan
– ICICI Smart Kid
– HDFC Young Star Plus
The reason for selecting these three is comparatively low overall ULIP charges. I am, though, not suggesting that there are no better plans available in market.
The best way to compare ULIP is to compare the maturity fund value at 6% return. On this criteria, SBI Child ULIP stands taller than any other plan. Though, the illustration given on SBI website seems to be incorrect. Another comparison criteria for ULIPs is the fund performance. On this criteria, both HDFC and ICICI plans score good. I couldnot get any info on SBI ULIP’s fund performance.
The indicative fund value for these plans stands as –
Premium – 50,000/- per annum
Return – 10%
SBI Child ULIP Plan : 16,00,000/-
HDFC Young Star Plus : 15,60,000/-
ICICI Smart Kid : 15,90,000/-
Overall, ICICI smart Kid is my choice.

Note:
 – All the calculation is based on information given on respective company’s
website.
– The calculations don’t take mortality charges into account.

P.S:
I have an updated comparative analysis posted here.