Every parent wants their children to grow up with proper education in a safe and stress-free environment.

From lower to middle-classes and fixed-income people, all could manage to fund the expense of the education of their children at school and college levels. But they need a huge amount of money when a child goes on to study at the tertiary level.

And this is the time when many parents find it difficult to come up with the required finances unless they plan for it and save regularly much before the time comes.

But the critical question is: Even if they save regularly, can they live long enough to complete the savings plan?

In order to solve the problem, insurance companies in Bangladesh have come up with an education protection plan for the parents.

Education protection plan refers to a scheme that allows people to safeguard a child's education so that their future does not face any adversity because of financial hardship.

It is the best plan for the policyholder's child and family as it includes a blend of benefits aimed at securing every stage of a child's growth, according to insurance executives.

The plan helps policyholders safeguard their children's higher education, waiver of premiums in the event of death of the policyholder, and a guaranteed monthly stipend for the insured.

"The plan will provide your children with financial security in the future," said Sheikh Rakibul Karim, acting chief executive officer of Guardian Life Insurance Ltd.

The plan entitles the policyholder to an income tax refund. It also includes hospitalisation benefits of up to Tk 5 lakh for the policyholder and family members, discounts on the cost of treatments and services at hospitals, and coverage for 18 critical illnesses.

If the policyholder dies before the maturity of the plan, the insured child will receive monetary benefits. All future premiums are waived, and the basic sum assured is paid with the accrued bonus at maturity.

Fahim Islam, executive vice-president for products and solutions at MetLife Bangladesh, describes the education insurance scheme as a unique selling proposition in the insurance sector.

"Keeping a future adverse scenario in mind, we buy products. But none of us wants that adverse situation to happen in our life. So, we need to have a protection plan to face if any adversity strikes our life."

"That's why parents should buy education protection plans for their children."

A parent can buy the plan for their child aged 30 days to 15 years. The policyholder's age has to be between 21 years and 55 years, and the policy period will be 10 to 21 years.

The insurance premium can be a minimum of Tk 1 lakh to a maximum of Tk 20 lakh, and it can be paid on a yearly, half-yearly, quarterly, and monthly basis.