Reliance Life Insurance (RLIC), a part of Reliance Capital Limited, has launched a new child insurance plan that will provide assured payouts for sponsoring a child’s education.

Launched in Kerala, India, the Reliance Education Plan is a non-linked, non-participating, specialist child insurance plan that helps parents secure the future of their children.

As per the plan, the insurer can pay regular premium, annual premium throughout the policy term or limited premium only for a fixed number of years within the term.

Along with the guarantee of receiving the basic sum assured at the end of the policy term on maturity, the plan also promises an additional 2% of sum assured every year. It also offers a guaranteed maturity addition that is equal to the guaranteed addition.

In case of the death of the policyholder, the nominee will be entitled to a death benefit.

Speaking at the launch, RLIC chief agency officer Manoranjan Sahoo said: "Given the higher level of consciousness towards education in the state, Kerala customers would find this plan relevant for their children’s career."

Sahoo also added that the company was aiming at achieving a 10% growth rate in the state through the sale of its different products.

The company is said to have collected INR440m ($6.89m) as insurance premium from the state market through the 20,000 new policies issued in the region at its 36 branch network locations with more than 2,800 advisors, reported the Hindu Business Line.