What Is a Child Education Plan
- Posted On: 05 Feb 2026
- Updated On: 10 Feb 2026
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- 1 min read
https://www.shriramlife.com//blog/advice/what-is-a-child-education-plan-and-how-it-works
Table of Contents
College tuition fees in India are rising by nearly 9 % every year. If you think you can wait to start saving, you need to think again. A child education plan helps you save steadily for your child’s future education while also providing the security of life insurance, so that unexpected events don’t derail their dreams.
What Is a Child Education Plan?
A child education plan is a long-term financial product that combines savings and life insurance to create a dedicated fund for your child’s education. Parents pay regular premiums over a chosen term, and when the policy matures, usually when the child reaches college age, a lump sum is paid out to cover tuition, books, accommodation, or other academic costs.
How Does It Work?
Most child education plans in India include a life insurance component, so if the policyholder (usually a parent) passes away, the plan continues. Future premiums may be waived, and the child still receives the planned funds or payouts for education.
These plans offer flexible payout options: either a lump sum at maturity or staggered payments at key milestones, such as school graduation or college entry.
Key Benefits of a Child Education Plan.
| Benefit | Details |
| Financial security | Your child’s education is protected even if life takes an unexpected turn. |
| Disciplined savings | Small, regular premiums grow into a substantial fund over time. |
| Tax benefits | Save on taxes with Section 80C and enjoy tax-free maturity under Section 10(10D) (subject to applicable tax laws and policy terms). |
| Flexible payouts | Provides monthly or yearly payouts during the benefit period based on your choice and as a lump sum, to support education milestones. |
Who Should Consider a Child Education Plan?
- Parents who want a goal-oriented way to save for their child’s future
- Families concerned about rising tuition and living costs
- Individuals seeking combined insurance and investment benefits in one plan
Quick Checklist Before Choosing a Plan.
- Decide the education goal: School, undergraduate, or higher studies.
- Choose the policy term: Usually until the child turns 18–22.
- Select the premium amount based on affordability and expected education costs.
- Check for flexible payout options and life insurance benefits.
| Learn why parents across India trust Shriram Life’s Child Education Plans for long-term education planning. |
FAQs
Why do people need a child education plan?
A child education plan helps parents systematically build a dedicated fund for future education expenses while providing life insurance protection. It ensures that a child’s education goals remain financially secure even during unexpected situations.
How much should I budget for raising a child?
The cost of raising a child varies based on lifestyle, education choices, healthcare, and living expenses, but it continues to rise every year. Planning early with structured savings helps parents manage major milestones, such as school and higher education, without financial strain.
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