- Education insurance policies offer flexibility.
- Fees in private primary and secondary schools are a whole different story.
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We strive to leave an inheritance for our children, and that's a noble goal. We all want to see them succeed, and possibly lead a better life than we did.
This is partly why we ensure our little ones attend school from an early age and hope they stay until they earn a diploma, a degree, or a practical skill. It also explains why we invest to give our children a head start in life.
Cost of education
Education, however, is a costly affair. Public primary education may be largely free, but secondary school education is not.
Even day secondary schools in rural Kenya require parents to pay an average Sh15,000 per year to cover lunch and uniform. That's a lot of money for families living on one or two dollars a day.
Fees in boarding secondary schools are much higher, ranging from an average of Sh35,000 per year for county schools to Sh40,000 and Sh53,000 annually for extra-county and national schools respectively.
While those are the figures published by the Ministry of Education, parents report paying nearly double the amount as they are charged development, remedial, and teacher motivation fees.
Fees in private primary and secondary schools are a whole different story.
Primary and secondary education aren't the end. While many young people finish their education at these levels (a situation that's neither ideal nor good for the country's future), many students with good grades proceed to Technical and Vocational Education and Training (TVETs) or universities for further training.
Despite government support at that level, parents still must dig deep into their pockets to pay for tuition, accommodation, food, travel, and related expenses.
Under the new funding model for tertiary education introduced last year, government support (including bursaries and loans) is based on the student's economic situation, but the overall fees annually have seen a steep rise. Students who used to pay Sh70,000 per year will now pay more than Sh200,000 each year.
This underscores the immense responsibility we have in preparing the next generation for adulthood.
The unpredictable nature of the future requires proactive planning to provide a safety net, especially when it comes to children's education. Quality education plays a pivotal role in shaping, not just academic success, but also professional and personal development.
There are multiple financial tools available that give parents and guardians a platform to plan for their children's education. One can decide to put money aside in traditional savings accounts or investments. They can also choose an education policy offered by several insurers.
A strong recommendation for any salaried employee would be an education policy, a solution combining savings and protection components to safeguard your child's educational journey even in unexpected events.
Belonging to the life insurance category, an education policy allows you to systematically save for your child's education, ensuring they continue their studies uninterrupted. If you experience permanent and total disability or even death, the policy covers your child’s education.
By committing to regular contributions, you can accumulate a substantial fund that meets your child's future education costs and shields their learning path from life's uncertainties.
Key considerations when selecting an education policy include estimating the cost of education, evaluating your age and the child's age (and the savings timeframe), determining an affordable contribution amount, and choosing the insurance type that aligns best with your requirements.
Education insurance policies offer flexibility, with the ability to start saving early and adjust contribution amounts to optimize your savings potential.
Moreover, education policies often incorporate investment opportunities in capital markets, offering competitive returns on your investment.
Additionally, provisions the permanent and total disability as well as death coverage further enhance the policy's comprehensive protection.
Investing in your child's education transcends mere financial planning; it embodies a commitment to their potential and a brighter future.
It's crucial to approach education planning holistically, considering not only quality education, affordability, and long-term aspirations.
In conclusion, a well-rounded education plan that integrates financial foresight, quality education, and a focus on long-term goals is the cornerstone of securing your child's future success. By planning and investing strategically and comprehensively, we empower our children to realize their full potential and thrive in a rapidly evolving world.
The writer is the CEO and Principal Officer, Britam Life Assurance Company