Child Education Insurance Plan Market Report 2025

The child education insurance plan market size has grown rapidly in recent years. It will grow from $6.14 billion in 2024 to $6.79 billion in 2025 at a compound annual growth rate (CAGR) of 10.6%. The growth in the historic period was driven by factors such as rising education costs, increased parental awareness of financial planning, growth in disposable incomes and the middle-class population, higher penetration of insurance products in developing regions, and growing demand for both savings and investment-linked insurance plans.

The child education insurance plan market size is expected to see rapid growth in the next few years. It will grow to $10.05 billion in 2029 at a compound annual growth rate (CAGR) of 10.3%. The growth in the forecast period is expected to be supported by greater adoption of digital insurance platforms, increased customization of child insurance products, expansion of bancassurance and fintech partnerships, rising education inflation in emerging markets, and government efforts to promote insurance awareness. Key trends forecasted include advancements in digital distribution channels, development of flexible and customizable policy options, innovations in bundled insurance and education services, policies covering skill development, and hybrid products that combine investment with protection.

The rising cost of education is expected to drive growth in the child education insurance plan market. Education costs encompass the total financial outlay for a child’s academic journey, including tuition, books, transportation, and accommodation. These costs are increasing due to rising institutional expenses such as faculty salaries and infrastructure upgrades aimed at meeting global academic standards. Child education insurance plans help alleviate the financial burden by enabling parents to systematically save and secure their child’s educational future through long-term financial planning. For example, in October 2024, a report from College Board, a US nonprofit organization, revealed that the average published tuition and fees for full-time students at private nonprofit four-year colleges in 2024-25 reached $43,350, marking a $1,610 (3.9%) increase compared to 2023-24 before inflation adjustment. Therefore, growing education expenses are fueling the demand for child education insurance plans.

Key companies in the child education insurance market are focusing on innovative offerings such as non-participating individual savings insurance plans that provide guaranteed returns and flexible premium payment options. A non-participating individual savings insurance plan is a life insurance policy offering fixed, guaranteed returns without participation in the insurer’s profits or bonuses. For instance, in February 2024, Life Insurance Corporation (LIC), an India-based insurer, launched LIC Amritbaal, a non-linked, non-participating savings life insurance plan designed to help parents secure a guaranteed financial corpus for their child’s higher education and future needs. The plan offers guaranteed additions of about $0.96 (Rs 80) per $12.0 (Rs 1,000) of the basic sum assured annually throughout the policy term. It also offers flexible premium payment options, including a single lump sum or limited payments over 5, 6, or 7 years. Children can be enrolled from 30 days to 13 years of age, with the policy maturing when the child is between 18 and 25 years old.

In January 2022, HDFC Life Insurance Company Limited, an India-based insurer, acquired Exide Life for $0.81 billion. This acquisition aims to broaden HDFC Life’s market presence by leveraging Exide Life’s strong agency distribution network and established footprint in South India, particularly in tier 2 and tier 3 cities. The move is intended to expand HDFC Life’s distribution scale and agent base, particularly by incorporating Exide Life’s child education, savings, and investment plans. Exide Life Insurance Company Limited is an India-based insurer offering child education plans as part of its life insurance portfolio.

Major players in the child education insurance plan market are Allianz SE, AXA S.A., Citigroup Inc., Life Insurance Corporation of India, Metropolitan Life Insurance Company, MetLife Inc., Prudential Financial Inc., Zurich Insurance Group Ltd., Chubb Limited, Massachusetts Mutual Life Insurance Company, Sun Life Assurance Company of Canada, Manulife Financial Corporation, ICICI Prudential Life Insurance Company Limited, HDFC Life Insurance Company Limited, Aditya Birla Sun Life Insurance Company Limited, Kotak Mahindra Life Insurance Company Limited, Reliance Nippon Life Insurance Company Limited, Tata AIA Life Insurance, Bajaj Allianz Life Insurance Company Limited, AIICO Insurance Plc, and CBZ Holdings.

North America was the largest region in the child education insurance plan market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in child education insurance plan report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the child education insurance plan market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

A child education insurance plan is a financial product specifically designed to combine life insurance protection with long-term savings or investment benefits, ensuring that a child’s future educational expenses are covered despite unforeseen events. The primary goal of this plan is to guarantee uninterrupted access to quality education by creating a dedicated education fund through consistent savings and risk coverage.

The main categories of child education insurance plans include endowment plans, unit-linked insurance plans, whole life insurance plans, and others. Endowment plans offer life insurance along with a guaranteed payout either upon maturity or in the event of the policyholder’s death during the policy term. These plans come with various premium payment options such as monthly, quarterly, semi-annual, and annual payments, and are distributed via online insurance agents, banks, and other channels. The plans serve both personal and enterprise applications.

The child education insurance plan market research report is one of a series of new reports that provides child education insurance plan market statistics, including child education insurance plan industry global market size, regional shares, competitors with a child education insurance plan market share, detailed child education insurance plan market segments, market trends and opportunities, and any further data you may need to thrive in the child education insurance plan industry. This child education insurance plan market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The child education insurance plan market includes revenues earned by entities by providing services such as life insurance coverage, participating whole life Insurance, partial withdrawals or loans, and customizable policy terms. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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