The moment a child is born, they have untapped potential that is yet to be realized. It is a parent’s responsibility to help nurture, care and mould their child to be the greatest version of themselves and therefore one of the greatest gifts you can give them is education. Education is a vital part of a child’s upbringing. Planning for your child’s education takes a huge load of burden off your shoulders and gives you comfort knowing that your child’s education is secured. Unfortunately, hardships in life happen and children’s education often gets interfered with due to lack of school fees. To prevent this from happening, getting an education insurance plan is important.
What is Education Insurance?
An education insurance policy is a life insurance coverage plan designed as a saving tool to cater for your child’s future educational needs. With an education insurance policy, you are able to set aside a given amount of money whether monthly, quarterly or annually for a specified period of time so that you have sufficient funds to invest in the desired quality of education for your child.
Reasons why you should get an education insurance policy.
- Financial security
Children have dreams and one great way to help them fulfil them is to secure their future by having an education plan. An education insurance policy will help you to plan and save towards your child’s education thus helping them achieve their desired goals.
- Protection in case of unforeseen circumstances
One of the major benefits of an education insurance policy is that in the unfortunate event of your demise, the insured child gets at least 50% of the sum assured. This benefit ensures that your child’s education remains uninterrupted and they are able to fulfil their academic desires.
- Financial stability
As the cost of living increases, so does the cost of education. It is costly to provide your child with good quality education and the future is no exception as the cost is more likely to increase. Therefore, to relieve the financial burden, it is critical for a parent to start saving for their child’s education in order to ensure financial stability thus the children are well taken care of in your presence and in your absence.
- Grow your savings
Some education insurance policies offer dual benefits of insurance as well as savings in a single plan. For instance, a good education policy offers benefits such as the bonuses your premium contributions earn are given back to you on maturity.
TIPS TO CONSIDER WHEN CHOOSING TO BUY AN EDUCATION POLICY
- Consider the level of education you would like your child to attain. This includes the school you would like your child to attend in the course of their education.
- Consider an education insurance plan that will fund the desired level and quality of education for your child.
- Consider the policy duration of the education insurance plan depending on what the expected time to the targeted level of education that the policy is being planned for. The policy holder is at liberty of choosing the period in which they would like to be insured which is usually between 5-25 years for most education policies.
An education cover is therefore an important policy to purchase in order to safeguard your child’s future. It gives you comfort knowing that your child’s education will go uninterrupted in case of any unfortunate life events such as demise of a parent.
For more information on education policy, feel free to call us on +254 703 099 120 or visit https://cic.co.ke/individual-solutions/saving-solutions/?tab=academia