What Market Size Is Projected For The Child Education Insurance Plan Market By 2030?
The child education insurance plan market size has grown rapidly in recent years. It will grow from $6.79 billion in 2025 to $7.5 billion in 2026 at a compound annual growth rate (CAGR) of 10.5%. The growth in the historic period can be attributed to increasing awareness of education cost inflation, rising household savings for child education, expansion of life insurance penetration in emerging economies, growth of structured long-term savings products, increased role of banks and agents in insurance distribution.
The child education insurance plan market size is expected to see rapid growth in the next few years. It will grow to $11.06 billion in 2030 at a compound annual growth rate (CAGR) of 10.2%. The growth in the forecast period can be attributed to rising digital insurance adoption, increasing preference for unit-linked education plans, growing focus on personalized financial planning, expansion of online insurance distribution channels, increasing demand for education-specific financial security solutions. Major trends in the forecast period include increasing adoption of goal-based education planning products, rising demand for flexible premium and payout structures, growing integration of digital policy management platforms, expansion of investment-linked child education plans, enhanced focus on long-term wealth protection.
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What Drivers Are Contributing To The Expansion Trajectory Of The Child Education Insurance Plan Market?
The rising cost of education is expected to propel the growth of the child education insurance plan market going forward. Cost of education refers to the total financial expenditure required for a child’s academic journey, including tuition, books, transportation, and accommodation. The increasing education costs are due to increasing institutional operating expenses, such as faculty salaries and infrastructure upgrades, which are continuously rising to meet global academic standards. The child education insurance plan helps address the burden of rising education expenses by enabling parents to systematically save and secure their child’s academic future through long-term financial planning. For instance, in October 2024, according to the report published by College Board, a US-based non-profit organization, in 2024–25, the average published tuition and fees for full-time students at private nonprofit four-year colleges is $43,350, reflecting an increase of $1,610, or 3.9%, compared to 2023–24 before adjusting for inflation. Therefore, the rising cost of education is driving the growth of the child education insurance plan market.
Which Primary Segments Are Included In The Detailed Analysis Of The Child Education Insurance Plan Market?
The child education insurance plan market covered in this report is segmented –
1) By Plan Type: Endowment Plans, Unit-Linked Insurance Plans, Other Plan Types
2) By Premium Payment Mode: Monthly, Quarterly, Semi-Annually, Annually
3) By Distribution Channel: Online, Insurance Agents, Banks, Other Distribution Channels
4) By Application: Personal, Enterprise
Subsegments:
1) By Endowment Plans: Endowment Based On Maturity Benefit, Endowment With Waiver Of Premium, Participating Endowment Plans, Non-Participating Endowment Plans, Limited Pay Endowment Plans, Full Term Endowment Plans
2) By Unit Linked Insurance Plans: Unit Linked With Equity Allocation, Unit Linked With Debt Allocation, Balanced Fund Unit Linked Plans, Unit Linked With Goal-Based Tracking, Unit Linked With Automatic Portfolio Rebalancing
3) By Other Plan Types: Hybrid Education Plans, Child Gift Plans With Education Coverage, Savings Linked Education Plans, Money Back Child Plans, Term Based Education Covers
What Key Market Trends Are Contributing To The Ongoing Development Of The Child Education Insurance Plan Market?
Major companies operating in the child education insurance plan market are focusing on introducing innovative plans, such as non-participating individual savings insurance plans, to provide guaranteed returns and flexible premium payment options. A non-participating individual savings insurance plan is a life insurance policy that offers fixed, guaranteed returns without any share in the insurer’s profits or bonuses. For instance, in February 2024, Life Insurance Corporation, an India-based insurance company, introduced LIC Amritbaal, a non-linked, non-participating individual 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 approximately $0.96 (Rs 80) per $12.00 (Rs 1,000) of the basic sum assured annually throughout the policy term. It provides flexibility with premium payment options, including a one-time (single) premium or limited premium 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.
Which Major Corporations Play A Crucial Role In The Child Education Insurance Plan Market Landscape?
Major companies operating 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, CBZ Holdings
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Which Geographical Region Is Projected To Lead The Child Education Insurance Plan Market Throughout The Forecast Period?
North America was the largest region in the child education insurance plan market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the child education insurance plan market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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