Why ULIP is Best Investment Option For Your Child?

Why ULIP is Best Investment Option For Your Child?

Reasons ULIPs are commonly used in planning investments for a child’s long-term financial needs.

Written by : Knowledge Centre Team

2025-12-05

895 Views

6 minutes read

Exit Pop Up

Live Life More Confidently

Get best insurance from our experts

Name is required Name should be Valid
Mobile Number is required Mobile Number should be Valid
DOB is required DOB should be Valid
Annual Income is required
Please tick to proceed further.

Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.

The costs of childcare and education are on the rise - and extensively so. According to an Assocham Social Development Foundation survey, the cost of private school education has risen by 150% in the past 10 years. Unfortunately, fixed deposits and other traditional instruments are proving insufficient to meet such humongous expenses. New-age parents are turning to new-age solutions like Child ULIPs.

What is a ULIP?

A Unit Linked Insurance Plan is a unique combination of insurance and investment. You pay a regular premium, a part of which goes towards a life cover and the other part towards equity, debt or balanced funds chosen as per your risk appetite.

One of the best ULIP in the market that you ought to consider right now is the Promise4Growth Plus plan.

What is the Promise4Growth Plus plan?

P4G from Canara HSBC is a plan that is tailored to help you fulfill the dreams you have for yourself and your family, while also keeping them safe and secure. This ULIP offers a whole world of possibilities with its various customizable options for choosing a life cover, a portfolio strategy, or the type of investment.

Why is it the best investment for your child?
 

  • Death Benefits - There are two different options for death benefits with this ULIP. You can choose the one that suits your family’s financial priorities.
    1. Life and Whole of Life options Under this option, your beneficiaries will receive a sum equal to either of the below, whichever is highest:
      • Sum Assured minus partial withdrawals
      • Fund Value (as per value on the date you make your claim)
      • An amount equal to 105% of all the premiums paid till the death date
    2. Life option with Premium Funding Benefit - Payout will be the higher of
      • Sum Assured
      • 105% of all premiums which are paid till death date

    Additionally,

    • All premiums in the future, when due, are waived off
    • Fund value will be received upon maturity of the plan.
    • India Multi-Cap Equity Fund
  • Maturity Benefits -Upon maturity of your ULIP, your fund value, which will be based on prevailing Net Asset Values (NAVs) will be accordingly disbursed. The returns will depend on the funds you choose to invest in and your portfolio management strategy.
  • Choice of Funds -Since every child has their own unique needs, the plan aims to cater to each of these needs by allowing you to customize your fund allocation. The P4G ULIP offers 7 diverse fund options. You can select any combination from amongst these and make it a customized ULIP.
    • Emerging Leaders Equity Fund
    • India Multi-Cap Equity Fund
    • Growth Plus Fund
    • Equity II Fund
    • Debt Fund
    • Balanced Plus Fund
    • Liquid Fund
  • Portfolio Management Option - Along with choice of funds, there is also an abundance of choice offered in portfolio management strategies. Each one is designed to offer
    1. Systematic Transfer Option
    2. Return Protector Option
    3. Auto Funds Rebalancing
    4. Safety Switch Option

As your child grows, their needs, too, will evolve and change. To keep up with these evolving needs, you can switch and redirect your investment amount among the various funds while employing any one of the above portfolio management strategies.

  • Settlement Option - This is another option for maturity benefit.
    • You can choose to receive your maturity benefits in instalments at a frequency of your choice, for not more than 5 years.
    • You can choose from monthly, quarterly, half-yearly or yearly payout options.
    • This is an extremely useful option if you need money on a periodic basis for your child’s tuition fees and other expenses.
  • Extra Advantages -Along with an extensive scope of choice, the P4G ULIP also offers Loyalty Additions and Wealth Boosters.

Loyalty Additions are received in every 5th year of the policy, at 0.5% of the average value of the last 60 monthly policy anniversaries.

Wealth Boosters are another additional allocation of units to boost your savings, which will be added every 5 years, proportionate to your total fund value.

  • Charges - P4G levies a minimum number of charges to ensure your child can derive the maximum possible benefits from your investment. The P4G Plan comes with the ROMC (Return of Mortality Charge) feature, which means that all of the mortality charges paid by you during the policy term will get added back to the fund value upon maturity.
  • Tax Benefits - In addition to boosting your wealth, investing in the plan can help increase your take-home income too! The ULIP premiums are eligible for tax deductions under Section 80C of the Income Tax Act, while the maturity proceeds are eligible for exemptions under Section 10(10D) of the Income Tax Act. You can use your tax-savings to further invest in your child’s future.

Invest in Your Child’s Dreams Now

Please enter correct name Please enter the Full name
Please enter valid mobile number Please enter Mobile Number
Please enter valid email Please enter Email
Consent is required

Enter OTP

An OTP has been sent to your mobile number

Didn’t receive OTP?

Application Status

Name

Date of Birth

Plan Name

Status

Unclaimed Amount of the Policyholder

Name of the policy holder

Policy Holder Name

Policy No.

Policy Number

Address of the Policyholder as per records

Address

Unclaimed Amount

Unclaimed Amount
Error

Sorry! No records Found

Request Registered

Thank You for submitting the response, will get back with you.

Complaint Registered

.  Please use this ID for all future communications regarding this concern.

Request Registered

Thank You for submitting the response, will get back with you.

Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.

Sorry

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.

Recent Blogs

Can We Transfer a Child Insurance Plan to Another Child?
16 Feb '26
1136 Views
5 minute read
Learn the rules for transferring child insurance plans. Use a child plan calculator to manage costs and secure your child’s future across key milestones.
Read More
Child Plan
A Guide to Financial Planning for Your Child’s Education Goals
16 Feb '26
844 Views
5 minute read
Early financial education helps children build smart money habits. Learn how a child savings plan can secure your child's education and future financial stability.
Read More
Child Plan
How to Open a Joint Investment Account with Your Teenager?
16 Feb '26
1083 Views
5 minute read
Learn how to open a joint investment account with your teenager, teach money management, and build long-term wealth together with practical, simple steps.
Read More
Child Plan
How Can You Build a Strong Overseas Education Fund for Your Child?
16 Feb '26
1297 Views
8 minute read
Learn practical tips to build a strong overseas education corpus for your child, manage rising foreign education costs, and plan early with the right investments.
Read More
Child Plan
Sukanya Samriddhi Yojana (SSY): Rate, Tax & How to Apply in 2026
01 Jan '26
6853 Views
15 minute read
Explore Sukanya Samriddhi Yojana 2026: interest rate, tax benefits under 80C, eligibility, deposit rules & how to open an SSY account step-by-step.
Read More
Child Plan
Planning Your First Child: Financial Steps to Prepare in 2026
30 Dec '25
903 Views
8 minute read
Learn how to plan for your first child by preparing finances, managing expenses, choosing insurance and building savings for a secure future.
Read More
Child Plan
Using Whole Life Insurance to Secure Your Child’s Future
27 Dec '25
2206 Views
12 minute read
Learn how whole life insurance helps secure your child’s future by offering lifelong coverage, financial stability and long-term support for education and goals.
Read More
Child Plan
4 Ways a Life Insurance Policy Benefits Your Child’s Future
26 Dec '25
2478 Views
7 minute read
Discover four key ways a life insurance policy supports your child’s future, from education planning and financial security to long-term savings and protection.
Read More
Child Plan
Child Investment Planning: Choosing the Right Plan for Future Goals
22 Dec '25
2251 Views
7 minute read
A practical guide to investment planning for children, covering plan types that help build funds for education and long-term financial goals.
Read More
Child Plan

Child Insurance - Top Selling Plans

We bring you a collection of popular Canara HSBC life insurance plans. Forget the dusty brochures and endless offline visits! Dive into the features of our top-selling online insurance plans and buy the one that meets your goals and requirements. You and your wallet will be thankful in the future as we brighten up your financial future with these plans.

Fixed Returns, Zero Risks & Worries

iSelect Guaranteed Future Plus
  • 4 Plan options
  • Life cover + Guaranteed benefits
  • Accidental death benefit
  • Premium protection cover

Don't Just Survive, Thrive

Guaranteed Assured INcome
  • 3 Plan options
  • Life cover + Guaranteed income
  • Get Total Premiums at maturity
  • Early income from 2nd policy year

Save, Dream, Plan. Live Peacefully

iSelect Guaranteed Future
  • 5 Plan options
  • Option to choose PPT
  • Get Tax benefits
  • Premium protection cover