What is a child education plan? How it secures your child's future

In short

• You pay a fixed amount every year, and the plan pays a lump sum with bonuses on the date you choose.
• If the parent dies during the plan, payments stop and the money is still paid on that date.
• State Life's Child Education & Marriage Plan runs for 10 to 24 years and can pay in one go or in five yearly parts.
• Starting early gives the plan more years to earn bonuses.

Understanding the basics

A child education plan is a life insurance and savings policy designed to build a lump sum for your child's future milestones, such as university fees or a wedding. You pay regular premiums for a set period, and the plan grows with yearly bonuses.

In Pakistan, the best-known example is the State Life Child Education & Marriage Plan. You choose when the payout comes, for example when your child turns 18, so the money is ready when university admission begins.

The protection built in

What makes an education plan different from a bank savings account is the protection. If the parent dies during the term, the plan does not stop: no more premiums are due, and when the child reaches the chosen date they still receive the full amount, as planned.

How State Life's plan works

• The parent can join between the ages of 20 and 60, for a child aged 1 to 15.
• Choose any term from 10 to 24 years, ending by the parent's age of 70.
• At the end the plan pays the sum assured plus bonuses, in one go or in five equal yearly parts for university fees.
• Extra cover can be added on the parent's life, such as an accidental death benefit or a waiver of premium; no rider is available on the child.
• Once declared, bonuses are guaranteed by the Government of Pakistan.

How to choose the right plan

Consider your child's age, the likely cost of their education, and your budget. Our Plan Finder gives a personal recommendation, and the child education goal page shows how saving for it works in three steps.

• Want the payout on your child's 18th birthday? The Child Education & Marriage Plan, or an Endowment Plan with the term set to match.
• Young child and a strong income now? Golden Endowment: pay for 7 years, collect after 20.
• Want it halal? Takaful Golden Endowment works the same way through a Shariah-compliant fund.

Start early

Starting early is the key to earning the most bonus: the rate per Rs. 1,000 rises the longer a policy runs. A small yearly commitment today can secure your child's future tomorrow.

Questions people ask

Can I choose when the money is paid?

Yes. The term is set so that the money comes when your child reaches university or wedding age.

What happens if I die before the end?

No more premiums are needed, and the money is still paid to your child as planned.

Can one plan cover two children?

One plan per child usually works best, so each payout lands on the right date. We can set it up for your family.

Is the payout guaranteed?

The sum assured and every bonus already declared are guaranteed by the Government of Pakistan; future bonuses are not.

Sources

• State Life, Child Education & Marriage Plan (Table-76)