What is Education Insurance?
Education insurance is a smart savings plan with life cover. You save regularly, and the money grows for your child’s university or college fees. The best part? If something happens to you, the insurance company pays all future premiums so your child’s education is guaranteed.
Key Benefits for Kenyan Parents:
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Guaranteed Fees: The money is paid out when your child reaches university age, no matter the economy.
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Life Protection: If the parent dies or becomes disabled, the insurance company pays the rest. Your child’s future is safe.
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Forced Savings: The money is locked away, so you can’t spend it on other things. It builds discipline.
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Beats Inflation: The growth often outpaces regular bank savings, helping you keep up with rising school costs.
How It Works (Simple Example):
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Child’s Age: 5 years old
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Target: University at age 18 (13 years to save)
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Monthly Premium: KES 7,000
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Total You Save: KES 7,000 x 12 months x 13 years = KES 1,092,000
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Guaranteed Payout at 18: Approximately KES 1,800,000 (includes growth/bonuses)
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If Parent Passes Away Early: The insurer pays all future premiums. The full KES 1,800,000 is still paid at age 18.
What to Look For in a Policy:
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Waiver of Premium: This is the most important feature. It means the insurer pays if you can’t.
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Guaranteed Minimum Sum: Know the least amount that will be paid out.
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Flexibility: Can you increase premiums if your income grows?
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Reputable Insurer: Choose a company licensed by the IRA (Insurance Regulatory Authority).
Start Early: The Power of Time
The younger your child is when you start, the smaller your monthly payments will be.
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Starting at child’s birth: Lower monthly premium.
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Starting when child is 10: Much higher monthly premium for the same goal.
Common Questions:
Q: What if my child doesn’t go to university?
A: You still get the maturity value in cash. They can use it for a business, vocational training, or a wedding.
Q: Is it better than just saving in a bank?
A: Yes, because a bank account doesn’t have the life insurance protection. If you die, the savings stop. With an education policy, the plan continues.
Q: Can I get my money if I have an emergency?
A: It is possible to get a loan against the policy or make a withdrawal, but this reduces the final value. It’s best to keep it for education.
Take Action Today:
Don’t wait. The cost of education rises every year. By starting a plan now, you lock in today’s prices and ensure your child’s dreams are within reach, no matter what life brings.
Ready to secure your child’s future? Contact Bimacal Insurance today for a free, no-obligation quote on an education plan tailored for your family.