Children’s Day: How life insurance can ignite your kid’s education dream

By Maneesh Mishra, Chief Product and Marketing Officer, Bandhan Life

“What will you be when you grow up?”

It’s a question every child hears — and answers — with wide eyes and big dreams. An astronaut, a doctor, a teacher, an artist. Their imaginations have no limits, and neither should the possibilities we create for them.

On this Children’s Day, as we celebrate the wonder, innocence, and ambition in every child’s heart, it’s also a time for us, as parents and caregivers, to pause and reflect: Are we doing enough to protect those dreams? According to recent reports, the cost of education in India doubles approximately every six years. Raising a child in an Indian city — from preschool to graduation — can cost between ₹38 lakh to ₹45 lakh. If you include coaching, gadgets, lifestyle, and other needs, that number can go up to ₹85 lakh. And if you’re planning to send your child abroad for higher studies, the cost is even higher.

While love gives children the courage to dream, it is planning and preparation that gives those dreams the wings to fly—even when life takes unexpected turns.

One powerful way to do that? Ensuring their education is secure—no matter what—through a well-planned life insurance policy designed with their future in mind.

Life Insurance: More Than Just a Safety Net

Many still think of life insurance purely as a means to support dependents in case of an untimely loss. But today’s insurance plans have evolved. Some not only offer protection, but also act as long-term savings tools—perfect for funding your child’s academic goals.

Whether it’s paying for school fees, higher education in India or abroad, or a professional course, child-focused insurance plans can help you build a secure financial cushion that ensures your child’s ambitions are never compromised.

Key Benefits for Your Child’s Future

• Uninterrupted Education: Financial support is assured, no matter what.
• Goal-Based Savings: Plans help you stay on track with future academic milestones.
• Tax Efficiency: Premiums qualify for deductions under Section 80C (under the old tax regime), and maturity benefits are generally tax-free (if certain conditions are met).
• Emergency Support: Many plans allow loans or partial withdrawals for urgent needs.

Choosing the Right Plan

• Endowment Plans: Ideal for parents who value security and predictability, these plans offer guaranteed returns at maturity. They’re perfect if you’re looking to build a safe education fund without worrying about market fluctuations.
• Unit Linked Insurance Plans (ULIPs):For parents with a higher risk appetite, ULIPs invest part of your premiums in the market, offering potentially higher returns over the long term. They work best when planned early, giving your investments time to grow.
• Savings Plans: These combine the best of both worlds—life cover and structured savings. Payouts are timed with key milestones like school admissions or college, helping you meet expenses right when you need to.

Why Life Insurance Works So Well for Education Planning  

Life insurance offers more than just peace of mind—it delivers practical, structured support when you need it most. Many child plans come with guaranteed payouts at key educational milestones like school, college, or higher studies, helping you avoid last-minute financial stress. In the event of a parent’s untimely passing, most plans also include a waiver of future premiums, so your child’s benefits continue without interruption. Whether you choose a ULIP for market-linked growth or a guaranteed plan, you enjoy the dual advantage of protection and wealth creation—all while staying disciplined in saving for your child’s long-term future.

Speak with a trusted financial advisor to find a plan that matches your child’s dreams and your financial capability.

A Gift That Lasts Beyond Childhood

This Children’s Day, while we give them toys, books, and treats, let’s also give them the gift of security and opportunity. A thoughtful insurance plan may not be flashy—but it’s a promise. A promise that says, “I believe in your dreams, and I’ll protect them.”

After all, dreams deserve wings. And with the right plan, you can help your child soar—no matter what life brings.