Should I buy a child plan or do an SIP?

A combination of a Term Plan (to secure the child's future) and an Equity SIP (to build the education fund) is mathematically superior to bundled child insurance plans in 90% of cases.

How much will MBA cost in 15 years?

Assuming a current cost of ₹25 Lakh and 10% annual education inflation, an MBA could cost approximately ₹1 Crore in 15 years. You need to plan for this 'future cost', not today's cost.

Are child plans tax free?

Most child plans offer tax-free maturity u/s 10(10D) if premiums are within limits. However, the returns are often so low that the tax benefit does not compensate for the lost growth compared to MFs.

Child Education Insurance vs MF Planner

Plan your child's higher education by comparing traditional child insurance plans with a Term + SIP approach.

Quick Summary: Child Education Insurance vs MF Planner

For a child's higher education, an equity mutual fund SIP typically generates a larger corpus than traditional child insurance plans due to higher compounding rates (12% vs 5%). For example, ₹10,000/mo over 15 years can create ~₹50L in MF vs ~₹25L in a child plan, easily covering the 10-12% education inflation.

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Regulatory Disclaimer

Last verified May 2026

Statutory Disclosure

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.