As a new school term begins, parents across the country are once again turning their attention to school fees, uniforms, books, transport and the many other costs that come with giving their children a quality education.

However, while back-to-school preparations often focus on meeting immediate expenses, they also provide an opportunity to consider a much bigger question: How prepared are you for your child’s future education needs?

For many parents, one of the most important financial milestones is not buying a home, growing a business or upgrading a car. It is ensuring that their children have access to quality education and the opportunities that come with it.

As education costs continue to rise, financing quality education requires more than good intentions. It demands a deliberate strategy that protects a child’s future, regardless of what life may bring.

While traditional savings play an important role, education policies can introduce a critical element that ordinary savings accounts may not provide: financial protection. An education policy can be structured to help ensure that a child’s education remains funded even if a parent is no longer able to contribute because of death or permanent disability. This protection can help safeguard long-term education plans against life’s uncertainties.

One of the valuable features of structured education planning is predictability. Unlike market-linked investment products, where returns can fluctuate, defined policy benefits can give families greater certainty when planning for future education expenses.

For example, the Absa Education Policy includes a premium waiver benefit. Should the policyholder pass away or become permanently disabled, future premiums are waived while the education plan continues towards maturity, helping ensure that the intended education benefits remain available when they are needed.

The earlier parents begin planning, the greater the flexibility they have in achieving their goals. A longer planning horizon allows families to spread contributions over time while building a dedicated fund for future educational needs.

With the Absa Education Policy, parents can choose a sum assured ranging from KES 100,000 to KES 5 million and select a payment period of between five and 18 years, depending on their education goals and financial circumstances. Benefits are guaranteed, provided premiums are maintained as agreed.

For many families, however, the challenge is not simply funding education today but ensuring those funds retain their purchasing power over time. Education inflation can put significant pressure on household budgets, particularly when it comes to private secondary and tertiary education.

To help address this risk, Absa’s Education Policy offers optional inflation protection, allowing customers to increase their cover annually to help preserve its purchasing power over the life of the policy.

Parents may also benefit from tax relief on qualifying policies with terms of 10 years or longer, potentially making education insurance an efficient component of a long-term financial plan. As with any financial product, parents should confirm their eligibility and applicable tax treatment before making a decision.

Perhaps the most compelling reason to plan for education is that the value of education goes far beyond financial returns. A well-funded education can create opportunities, expand choices and empower future generations to pursue their ambitions with confidence.

Ultimately, education planning is about more than paying school fees. It is about protecting a child’s opportunities and giving them the freedom to pursue their ambitions without their education being derailed by unforeseen financial circumstances.

The best time to start planning for that future is long before the first school-fee invoice arrives.

 

 

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Category: Education

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About the Author

Julia Nechesa Shisia is the Principal Officer and Executive Director of Absa Bancassurance Intermediary at Absa Bank Kenya. She is a seasoned financial services executive with more than 20 years of experience spanning insurance, banking and bancassurance. Julia has held senior roles at leading financial institutions and is passionate about expanding access to insurance, financial protection and inclusive financial solutions in Kenya.

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education planning education policy Kenya school fees planning child education savings Absa Education Policy