Child Savings Plan Vs Term Insurances Plan


In today’s stressful environment, every parent wants to ensure their child’s future. They always provide their children with the greatest possible upbringing and education. They also want to make sure that their children are financially secure while they are away.

Consequently, if you are considering starting a family, you need to have a trustworthy insurance plan that keeps your family financially safe. When you research insurance plans, you will find that there are different types of insurance plans that help to fulfill your requirements.

If we talk about the child savings plan and the group term insurance plan, then both insurance plans are different. Let us look at the difference between child savings plans and term insurance plans.

What is the child savings plan?

A child savings plan is the type of investment that helps maintain the well-being of your child’s future. There are various child plans available in the market. In the child insurance plan, the primary policyholders are the parents, and the beneficiaries are the children.

The components in this investment policy help you by offering coverage on the cost of your child’s higher education or marriage.

What is the term insurance plan?

A term insurance plan is a type of insurance product that secures the financial future of your loved one when you are not present. This plan also protects the future of your child.

In simple words, a term insurance plan is a group term insurance plan that offers coverage to your family when an unexpected cost occurs in their life in your absence. By using the rider benefits under this policy, the policyholder additionally broadens the insurance plan’s coverage.

Child savings plan Vs term insurance plans

This section will highlight the distinguishing factors between the child savings plan and the term insurance plans. Further points will show you the difference between child savings and term insurance plans.

1.  Type of plan

Child savings plans are considered the best investment products that provide insurance and investment benefits.

On the other hand, the term insurance plan is only a life insurance product. It means the policyholder gets the benefits of this plan without getting returns.

2.   Premiums

The premium of the child savings plan is basedon the selected coverage and its benefits. Also, the policyholder is allowed to continue investing in this policy after his/her death.

But in the case of the term insurance plan, you have to use the term insurance calculator to determine the premiums you must pay to get coverage and benefits.

3.   Sum assured

The child savings plan pays the benefits of the lump sum amount to the children after your death. But the term insurance plan is much like the child plan. It will provide the lump sum amount to the beneficiaries and children after your death.


Due to their distinct functions, both insurance policies are beneficial. After reviewing the aforementioned ideas, you need to choose the best insurance plan.  

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