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Securing Your Child’s Education with Education Insurance Policy in Kenya

Getting an education insurance policy means creating a savings tool that will pay an agreed amount of money in favor of your child’s education costs. Even if you’re no longer there.

What you need to know about an education insurance policy

  • No matter what occurs, the parent’s life is guaranteed by the policy and the child’s education future is protected as the beneficiary. This means, in the occurence of your untimely death as a parent, your child’s school fees will be taken care of by your sum assured.
  • Most policies will have bonuses and benefits but it is up to you to decide on how they’ll be remitted. Be keen to understand the policy period and what your sum assured will amount to on maturity. 
  • Premiums can be paid in a number of convenient installments: monthly, quarterly, semiannually, or yearly. This is depends on the flexibility of your budget and the timeline of your goal with the policy.

With that in mind, let’s take a look at why it is important to install an education insurance policy for your child’s future education needs.

Why get an education insurance policy?

Imagine this: your child, bright-eyed and full of dreams, talking about becoming a doctor, an engineer, or maybe even an astronaut. Their future feels limitless, and you, as a parent, want to do everything you can to nurture those dreams. 

One of the best ways to protect these dreams is to get a mix of insurance and savings options that are considerate of your budget and goal in mind to save up for your child’s education expenses. 

So, how does a policy paper locked up in a brief case under your bed take your beautiful child to school, especially in your absence?

Here’s how education insurance works.

As a parent, you pick an education insurance plan from a reliable company. Don’t be scared by the wide variety of choice to pick from, we at Dawit Insurance, are glad to help you find what works best for you.

You’ll choose how often you want to pay the premium (monthly or yearly). It is important to pay the premiums on time to keep the policy current.

Your efforts and resources in the policy build up over time as the savings part grows by earning interest or money from investments handled by your insurer.

You get the money you’ve saved when the insurance matures, which usually happens after an agreed amount of time between you and your insurer. You can use this lump sum to pay for your child’s education expenses at school.

If your insurance policy includes included life cover, your child will still be able to go to school even in your untimely death. This is because the sum promised goes to the beneficiary, who is usually your child.

Are there other benefits to an education insurance policy?

You have more to benefit from an education insurance policy than just paying school fees and affording a good school for your child.

Here’s an overview of some of these benefits:

Critical Illness Coverage: If you are diagnosed with a critical sickness like cancer, you get some of the sum assured right away. No more premiums are due, and the insurance stays in effect at no extra cost to you. At maturity, you will also get all of your perks.

Accidental Death Benefit: If you die in an accident, your beneficiary gets a lump sum that is usually twice the amount insured. The policy stays in effect even after the premiums stop.

Natural Death Benefit: The natural death benefit means that if you die naturally, your beneficiary will get the sum promised. There are no more premiums, and the insurance stays in effect for free. At maturity, you will also get all of your perks.

Getting tax breaks: For policies with a minimum term (like 10 years), you could enjoy a tax break (like 15% of annual contributions).

Should you secure your child’s education future with insurance?

Think of it as a promise you make to your child’s education dreams a reality. Getting an education insurance plan will build a pot of money over time, specifically for your child’s education. This guarantees a set amount to cover tuition fees, books, and other expenses, regardless of future circumstances.

You have the opportunity to secure their education futures today. Click this link to schedule a FREE consultation with our General Manager, Stella Chepkwony, for a personalized guide on how you can get started today.