Why take an Education Policy for your child?

The role played by Education Insurance in paying your child\’s school fees cannot be under emphasized and is one of the most precious inheritances that you as a parent can offer your child. It is the duty of the parents to offer their children good education. Education policies do assist parents to meet the cost of education through primary, secondary and on to higher learning depending on the type of policies purchased. The policy is arranged early in the child\’s life and is programmed to mature at the time the child is joining school.

In the event of the untimely death of a parent or guardian who brought the policy all premium payments will stop. However, the policy will continue and the sum assured will be paid at the time a child is joining school. This guarantees the child\’s education in the absence of the parent or guardian. In some instances, payment of school fees can be made through installments instead of a lump sum.
Those who buy education policies are entitled to some tax relief on the premiums that they pay. This means that, the amount payable in lump sum at maturity is not taxed. Some policies may provide for payment of medical bills if the child is hospitalized or involved in an accident as well as providing funeral expenses cover in the event the child dies prematurely.

To enjoy the full benefits of a life policy, you must pay premiums for the entire duration of the policy.

• Have a policy that guarantees your child\’s education in the event of your untimely death.
• Buy education policies early in the child’s life to pay lower premiums.
• It is to your advantage to other important insurances such as medical, life and   personal accident added to your education policy.
• Buy only insurances that you need and buy within your financial means.
• Deal only with operators who are licensed by the IRA.
• Obtain insurance advice from a licensed insurance       company,   insurance broker, insurance agent or from the IRA.

  There are many insurance companies licensed to sell school fees insurance policies. Many of them sell education policies through their agents.

  It is advisable that you buy education insurance from a company near you and only deal with agents and insurers licensed by the IRA.

  adapted from http://www.ira.go.ke/ the Insurance Regulatory Authority of Kenya

  For more information, Contact

  Gallin Wekesa, Financial Advisor- Britam- 0712870447- gallywexa@gmail.com.