Child Education Insurance Market Report 2025

The child education insurance market size has grown rapidly in recent years. It will grow from $3.17 billion in 2024 to $3.5 billion in 2025 at a compound annual growth rate (CAGR) of 10.4%. The growth during the historical period was driven by rising education costs, greater financial awareness among parents, an increase in dual-income households, wider adoption of long-term savings plans, and the expansion of the global middle-class population.

The child education insurance market size is expected to see strong growth in the next few years. It will grow to $5.13 billion in 2029 at a compound annual growth rate (CAGR) of 10%. The projected growth during the forecast period is driven by rising demand for personalized insurance products, greater emphasis on financial literacy programs, increased use of digital platforms in insurance, stronger government support for education funding, and growing preference for hybrid insurance-investment plans. Key trends include the advancement of digital policy customization, development of AI-driven underwriting tools, innovations in mobile-based premium management, improvements in personalized insurance planning, and the adoption of blockchain technology for claims transparency.

The increasing demand for international education is expected to drive growth in the child education insurance market. International education involves pursuing academic programs abroad for global exposure, quality learning, and better career opportunities. Families are increasingly prioritizing overseas education due to perceived higher standards and broader career prospects, particularly in developed countries. Child education insurance supports this trend by building a financial reserve to cover tuition, travel, and living expenses, even in the event of disruptions to parental income. For example, during the 2023/2024 academic year, U.S. higher education institutions hosted 1,126,690 international students from over 210 countries, a 7% increase from the previous year, according to the Institute of International Education. This rising international education demand is fueling the market for child education insurance.

Companies in the child education insurance sector are developing innovative solutions to support long-term educational and career goals. Children’s future aspiration insurance is a plan designed to secure funding for a child’s education, career, or business ambitions, ensuring support during unexpected disruptions in family income. In March 2025, SBI Life Insurance Company Limited, based in India, launched SBI Life-Smart Future Star and SBI Life Smart Platina Young Achiever. These plans offer flexible premium and payout structures aligned with educational milestones, include premium waivers in case of a parent’s death or disability, and promote disciplined savings with guaranteed returns or bonuses. These solutions provide parents with adaptable financial support throughout their child’s educational journey.

In January 2022, HDFC Life, an India-based child education insurance company, acquired Exide Life for $0.81 billion. This acquisition allowed HDFC Life to expand its market presence by leveraging Exide Life’s strong agency distribution model, particularly in South India and tier 2 and tier 3 locations, and to scale its distribution network and agent base. Exide Life is an Indian insurance company offering child education insurance, savings, and investment plans.

Major players in the child education insurance market are Allianz SE, Citigroup Inc., Prudential Financial Inc., Zurich Insurance Group Ltd, Chubb Limited, Massachusetts Mutual Life Insurance Company, Aviva plc, AIA Group Limited, Sun Life Financial Inc., Manulife Financial Corporation, HDFC Life Insurance Company Limited, SBI Life Insurance Company Limited, Bharti AXA Life Insurance Company Limited, Kotak Mahindra Life Insurance Company Limited, Reliance Nippon Life Insurance Company Limited, PNB MetLife India Insurance Company Limited, CBZ Holdings, AIICO Insurance Plc, Shriram Life Insurance Co. Ltd, and Société Générale Ghana Limited.

North America was the largest region in the child education insurance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in child education insurance report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the child education insurance 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.

Child education insurance is a financial plan designed to secure a child’s education in the event of a parent’s death, disability, or other emergencies. It combines life insurance with savings or investment features to build a corpus by the time the child reaches higher education age. This type of policy helps parents manage rising education costs, ensuring that the child’s education proceeds smoothly despite unforeseen circumstances.

Key types of child education insurance include traditional child education plans, unit-linked insurance plans (ULIPs), endowment plans, and term insurance plans with education riders. Traditional plans offer life coverage and guaranteed savings, allowing parents to fund education with stability and protection from market risks. Premiums can be paid as a one-time payment, annually, semi-annually, or monthly, with policy terms ranging from short-term (1-5 years) to medium-term (6-10 years) and long-term (11+ years). These plans are distributed through insurance agents, brokers, direct sales, online platforms, bancassurance, and other channels, and they are used for funding education, covering tuition fees, supporting scholarships, paying exam fees, and managing living expenses.

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

The child education insurance market includes revenues earned by entities by providing services such as premium waiver benefit, lump sum payout on maturity, partial withdrawal facility, milestone-based payouts, and tax saving benefits. 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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