Child Investment Plans in UAE

Expert Insight: Starting early gives your investments more time to compound. Even beginning your child’s education plan 5 years earlier can help you build the same education fund with lower monthly contributions.

What is a Child Education Plan in UAE?

With a child education policy, you can make investments for your child’s future, particularly in terms of their education. These plans generally include payouts at specific intervals — this could be a period of 10-20 years or the time when your child turns 18 or starts college.

Although technically investment plans, they also include an insurance component. This offers financial protection against unforeseen events, which ensures that your child's education is not compromised in any scenario.

By investing in a child education plan, you not only secure your child's academic and career prospects proactively but also get peace of mind and a solid foundation for their future success.

Why Do UAE Parents Need a Child Education Plan?

Unlike in many countries where higher education is heavily subsidised, many UAE residents, especially expatriate families, rely on private schools and universities. They also face multi-currency mismatches (AED, USD, INR, GBP, CAD), career transitions, and geographic relocations.

Relying on standard bank savings accounts means your capital loses purchasing power to tuition inflation. On the other hand, taking out last-minute personal loans forces you to pay a high premium (often 10% to 20%+ in interest) just for being unprepared.

A dedicated child investment plan allows you to build a separate education corpus over time, reducing the financial burden when your child reaches university.

To put this into perspective:

Average UAE Education Costs (2026 Institutional Baseline)

*Estimated costs vary depending on the institution, curriculum, and other factors.

Starting an education savings plan early gives your investments more time to grow through compounding, reducing the amount you need to save each month.

Child Education Plan vs Child Insurance Plan vs Education Savings Plan

Many parents use these terms interchangeably, but they serve different purposes. Understanding the difference can help you choose the right solution for your family.

Which Option Should You Choose?

• Choose a child education plan if you want both long-term savings and life insurance in a single solution
• Consider a child insurance plan if your primary goal is financial protection for your family
• An education savings plan may suit parents who only want to build an education fund without requiring insurance benefits

If you're unsure which option is right for you, comparing multiple plans can help you understand the features, flexibility, and costs before making a decision.

Best Child Education Plan in UAE

Mentioned below are the top child education plans in the UAE that you can look into —

Zurich Education Savings Plan

Zurich Education Savings Plan is a savings plan. It helps parents build a fund for their child’s higher education. Even if something happens to you, your child’s education stays fully protected with their Future Premium Protection benefit.

Here are the key features of the plan —

• Start saving from just USD 400/month
• If a parent becomes disabled or passes away, the company pays the rest of the premiums and continues the coverage
• Choose from different funds to grow your money faster than in a regular savings account
• Charges are spread over the whole plan, not taken all at once
• Insure the child till they turn 15
• If the parent/policy owner is no longer available, the child can access the policy benefits once they turn 18

Citibank Education Plan

This education insurance plan is designed to secure your child’s future even in your absence. Here are the key features of this plan —

• Flexible plan that allows you to increase the premium for additional cash flow
• Choice to withdraw and partially surrender the plan if you need to finance short-term capital requirements
• Choose the range of investment funds as per your risk appetite
• Option to operate the plan in a wide range of currencies

Standard Chartered Global Choice Child Education Plan

This is a hybrid investment and life insurance plan to secure your child’s higher education. Have a look at its key features and benefits below —

• Guaranteed capital protection
• Life insurance and investment in one place
• Option to create a portfolio of up to 30 mutual funds
• Customise your portfolio when required

LIC International Child Education Plan

LIC International Child Education Plan is a non-linked participating limited premium endowment plan with the following key features and benefits —

• Death benefit paid in case of the life assured’s untimely demise
• Basic sum assured for the life assured along with accrued guaranteed addition on surviving the policy’s maturity
• Optional benefits including premium waiver benefit rider

FAB EduPlus

This education insurance policy covers your child’s education expenses — you can get coverage for tuition fees, textbooks, transportation fees, additional coaching class fees, and more. Here are the key inclusions of this plan —

• Accidental death cover
• Hospital cash expenses reimbursement due to accident (up to 60 days)
• Extra-curricular activities
• Dependent child protection
• Loss of child’s documents
• Educational institution transfer documentation expenses

Financial Advice

• For High Growth (Long Timeline): Choose Zurich or Citibank if your child is very young (0–5 years old) and you want to aggressively beat tuition inflation by investing in global stock markets.
• For Guaranteed Certainty: Choose LIC International, Standard Chartered, or MetLife if your child is older and you cannot afford to risk your principal capital to sudden market downturns before university invoices arrive.

Features of a Child Education Plan in UAE

So far, we’ve understood that a child education plan is an investment instrument specially designed to help your children achieve their academic dreams. However, besides guarding their educational pursuits, a child education plan also hosts a plethora of features including —

• Create Corpus for Child’s Education — With a child education plan, you can create a financial cushion against the effects of inflation. However, keep in mind that the availability of funds will depend on the plan’s terms and conditions as well as the premium invested.
• Insurance Component — If you choose education insurance UAE, your child will get financial security in case of your absence.
  In case of the untimely death of the parent, the future premiums are waived. However, the policy continues and the child receives the intended funds upon the maturity of the policy.
• Savings Component — Plans under child education insurance UAE include a savings component as you pay regular premiums over a specified tenure. The money paid in such plans is accumulated over time and is invested by the insurance company.
• Investment Component — Your funds get invested across several assets including stocks, mutual funds, and bonds. The investment vehicles depend on your risk appetite and the time horizon until the child needs the funds.
• Flexible Modes of Contribution — As a parent or legal guardian, you can contribute to a child investment plan in the UAE in two ways — regularly via a systematic investment plan (SIP) or through a one-time lump sum payment.
  Just like any other investment plan, the mode of contribution will depend on your financial situation, options provided by the provider, and more.
• Risk and Returns — The return on investment depends on portfolio performance. High-risk assets like equity funds may provide a higher return on investment than bonds, which are low-risk investments.
• Option to Customise Plans — Most providers allow you to customise the child investment plan UAE so that you can choose the investment mix and switch between the funds as per your evolving risk appetite or market conditions.

Types of Child Education Plans in UAE

Discussed below are the types of child education plans in UAE —

Such child education plans have a saving component, which allows you to earn maturity benefits once the policy matures. They also create a life protection shield while contributing to your child’s higher education.

Why Choose a Child Investment Plan Instead of Regular Savings?

Many parents simply save money in a bank account for their children's education. While this is a good habit, it may not always be enough to beat education inflation.

A dedicated child education savings plan offers several additional benefits.

For many families, combining investments with insurance provides greater financial security and peace of mind.

How Does Child Education Plan UAE Work?

Before talking about how a child education insurance plan works, it’s important to understand when you should invest in one. Child investment plans usually include life insurance and opportunities to grow your wealth over time. Here’s how they work —

• Payment of premium: Depending on the plan, you might need to pay a lump sum or regular premiums (monthly, quarterly, half-yearly, or annually) to keep it active and earn interest.
• Sum payouts: After a set period or a milestone, you will start receiving payouts. When your child starts higher education, you can use these funds for tuition fees.
  In case the parent passes away: If the parent dies before the policy tenure is completed, the insurance component will kick in. This way, the premiums might be waived without affecting the policy.

Did You Know?

Premium waiver is one of the most valuable features in a child education plan. Without it, your family may have to discontinue the policy if regular premium payments become difficult after the loss of the earning parent.

Read More: 5 Best Child Investment Plans to Invest

Which UAE Plans Offer Both Life Cover and Education Savings?

Many UAE insurers have plans that combine long-term investing with life insurance. Some of the most popular options available through Policybazaar.ae include:

• Zurich Education Savings Plan
• MetLife Educare
• LIC International Child Education Plan
• Standard Chartered Global Choice Plan
• National Bonds (goal-based education savings)

These plans generally provide:

• Long-term wealth creation
• Parent life cover
• Premium waiver benefit
• Flexible premium payment options
• Goal-based education savings
• Optional riders for additional protection

How Much Should You Invest in a Child Plan?

Short answer: As per your specific requirements!

As with any investment instrument, how much money you should invest depends on your future plans and requirements. In this case, you will need to consider factors like -

• Cost of education
• Current savings
• Education inflation
• Other investments, if any

For instance, if you plan to send your child abroad for college education, you will need to invest more than a person who doesn’t have any such plan.

Documents Required to Invest in Child Education Plan

Here is the list of documents required to invest in a child education insurance policy —

• Complete proposal form
• Applicant’s identity proof: Valid Passport copy, UAE Residency Visa, and a front/back copy of an Emirates ID.
  Address proof like rent agreements or lease
• Applicant’s age proof
• Income proof (salary certificate addressed to the insurer or 3 to 6 months of local UAE bank statements showing regular salary credits)

Tips to Choose the Best Child Education Plan in UAE

Mentioned below are some simple tips to choose the best child education plan in UAE —

• Begin Investing Early — Start investing as early as possible, especially for a child education plan.
  Early investments build a larger fund for your child's higher education. In fact, it also benefits from compounding, increasing your wealth over time.
• Factor in Economic Variables — Consider future economic factors like inflation, rising education, and healthcare costs when deciding on the sum assured. This ensures you have enough funds for your child's education.
• Special Attention to Terms and Conditions — Carefully review the terms and conditions of your child education plan to avoid confusion later. This helps you choose the best plan for your child's needs.
  You can compare various options on our website to find the right policy.
• Look for Plans with the Premium Waiver Benefit — Select a plan with a premium waiver so that your child's future is secured even if you're not there to support them. With this option, you can ensure that further premiums are waived in case of the parent’s death — the plan continues to remain in effect.
• Opt for Policies Allowing Partial Withdrawals — Choose an education insurance policy that allows partial withdrawals. This can be useful to handle emergencies without compromising your child's future education.
• Choice of Fund — Understand your needs, financial capabilities, and education inflation before choosing a child investment plan. For better returns, consider ULIPs, endowment plans, or equities — later, you can transfer funds to safer options.

Choosing the right fund is crucial to avoid losses and generate significant returns.

How Does Policybazaar.ae Help You Choose the Right Child Education Plan?

With multiple child investment plans, education savings plans, and insurance-backed solutions available in the UAE, finding the right option on your own can be overwhelming.

Here's how Policybazaar.ae helps:

• Compare leading child education plans from trusted insurers and investment providers available in the UAE.
• Understand the differences between guaranteed savings plans, market-linked investment plans, ULIPs, endowment plans, and education insurance plans.
• Get personalised recommendations based on your child's age, education goals, investment horizon, and risk appetite.
• Find plans with premium waiver benefits. This ensures your child's education fund remains protected even if something happens to the parent.
• Compare premiums, benefits, and payouts side by side to make an informed decision.
• Receive expert guidance from experienced advisors who understand the financial planning needs of UAE residents and expatriate families.
• Complete your application online with dedicated assistance throughout the buying process.

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