Every parent yearns for a stress-free, comfortable and bright future for their beloved children. And most parents work tirelessly so that the sons and daughters don't face any financial difficulty in life.

But many people in Bangladesh, especially those belonging to the lower, lower-middle and middle-income groups, often struggle to meet the rising living cost. And they have to dig deep into their pockets to bear children's educational expenses, which are also rising.

So, questions remain how parents can afford to send their children to a good school, ensure their higher education, and, above all, secure a relatively stress-free future for them.

In such a scenario, child education insurance policy, child protection plan, or child development plan could be of great help. The policy will provide financial protection and education to the beneficiaries if their future becomes uncertain if parents are not around unexpectedly.

MetLife Bangladesh has such a child education insurance policy under the name of the Education Protection Plan. It also has Education Protection Plan Plus, which offers 10 different supplementary products' facilities.

"But the main objective of the policy is identical, which is to ensure a child's education. It is different from other policies because of the additional benefits," said Fahim Islam, executive vice-president for products and solutions at MetLife Bangladesh.

A parent aged 21 to 55 can open the policy at MetLife Bangladesh.

If a child is aged 30 days to five years, the coverage amount will be a minimum of Tk 1 lakh and a maximum of Tk 20 lakh. For the child aged six to 15 years, the face amount ranges from Tk 1 lakh to Tk 25 lakh.

"The amount of premium is a bit higher for the first range of the coverage as the mortality rate of infants is higher for the group compared to the second group," said Islam.

The term ranges 10 to 21 years.

The premium can be paid monthly, quarterly, semi-annually and annually basis. In the case of a monthly payment, an electronic fund transfer is applicable.

Every insurance policy has two parts: savings and protection. The education protection plan offered by most insurers in Bangladesh covers both.

"We have tailored the policy keeping in mind the interests of both policy-holders and beneficiaries, so this is unique from other policies," said Sheikh Khairuzzaman, assistant general manager of Jiban Bima Corporation.

The policy is flexible. The coverage amount is paid when the policy term ends. The money can be used to pay for children's higher education.

"But if the beneficiary completes his or her studies before the maturity period, the money will be very helpful to start a career, cover marriage expenses, or support other important events in life," Khairuzzaman said.

Md Jalalul Azim, managing director of Pragati Life Insurance, says education protection plans offer many benefits.

In case of the policy-holder's unexpected demise, the family will get 10 per cent of the face amount immediately. The future premiums payment will be waived for the remaining policy term, but the policy continues to exist until its maturity.

One per cent of the face amount will be paid every month for the education of the beneficiary until the policy matures. After the end of the term, the beneficiary will receive the full maturity benefit, said Azim.

In the unfortunate event of the child's loss of life, the face amount plus accrued bonus is payable.

If the policy period at the time of the child death is less than six months, the family will get 25 per cent of the face amount. If it is less than a year, they will get 50 per cent.

If it is less than two years, the policy-holder will get 75 per cent of the face amount, and it will be 100 per cent when the period of the policy is more than two years.  

Fahim Islam says if the policy-holder adds accident coverage with the main policy, it will provide additional benefit.

For homemakers and insured aged 25 or below, the maximum coverage will be Tk 25 lakh.