Every parent in Bangladesh worries about one thing: what if I am not there to pay for my child’s studies? School fees, coaching costs and university expenses keep rising. Education insurance is built for exactly this fear. It combines savings with life cover, so the money for your child’s education is there even if the worst happens.
What Is Education Insurance?
Education insurance, also called a child protection plan or education protection plan, is a type of life insurance. Most Bangladeshi insurers design it with two parts: a savings part that builds a fund over time, and a protection part that steps in if the parent dies. About 14 life insurers have offered education insurance under a scheme approved by the Insurance Development and Regulatory Authority (IDRA).
How Does It Work?
You pay a regular premium for a fixed period. When the policy matures, your child receives the money, usually when higher education begins.
Take MetLife Bangladesh’s My Child’s Education Protection Plan as an example. According to MetLife, the child can be from 30 days to 15 years old, and the parent from 21 to 55 years. At the end of the premium payment term, the plan pays 50 per cent of the face amount, and the full amount plus bonuses is paid at maturity, according to the plan details.
What Happens If the Parent Dies?
This is the biggest benefit. Under MetLife’s plan, if the policy owner dies, all future premiums are waived, and the policy continues until maturity. The child also gets a monthly income equal to 2 per cent of the face amount until shortly before maturity.
Jiban Bima Corporation, the state-owned insurer, offers a similar benefit. If the policyholder dies before maturity, premiums are waived, and the insured amount is paid with full bonus at maturity.
Other options exist too. Delta Life has an Education Expense Insurance Plan with annual stipends that grow 7 per cent each year. Guardian Life, Pragati Life, National Life and Shanta Life also offer child plans.
Is It Really a Guarantee?
Here is the honest answer: the plan is only as strong as the company behind it. IDRA data shows life insurance claim settlement fell from 85 per cent in 2020 to 66.06 per cent in 2025, and about 12 lakh policyholders were still waiting for payments. Some insurers have very low settlement rates, while MetLife Bangladesh settled 98.3 per cent and Guardian Life 97.5 per cent of claims in the October to December 2025 quarter, according to IDRA data.
How to Choose the Right Plan
- Check the insurer’s recent claim settlement rate on IDRA reports and in the news.
- Match the maturity date with when your child will start university.
- Read what is paid if the parent dies, if the child dies and if you stop paying.
- Ask whether bonuses are guaranteed or only projected.
- Buy through a licensed agent or directly from the company.
- Choose a premium you can pay comfortably for the whole term.
Frequently Asked Questions
Who Can Buy Education Insurance?
Parents or legal guardians within the age limits of the plan.
When Should I Start?
The earlier the better. Premiums are lower, and the fund has more time to grow.
Can I Stop Paying Midway?
You can, but you may lose benefits. Check the surrender rules first.
Is It Better Than a Bank Savings Scheme?
It adds life cover and premium waiver, which a savings scheme does not.
Final Thoughts
Education insurance cannot promise perfect outcomes, but it gives your child a financial safety net that a regular savings account cannot. Pick a trusted insurer, read the terms carefully and start early. A small premium today can protect years of schooling tomorrow.
