Every parent dreams of providing their child with the best education possible, but in Kenya, this dream often comes with a hefty price tag. From the early days of primary school to the final year of university, the cost of education is a constant burden, and it’s one that’s growing heavier by the day.
The recent increase in university tuition fees has sent shockwaves through Kenyan households. According to the Institute of Economic Affairs (IEA Kenya), the cost of a university education is set to increase significantly, putting even more strain on families already struggling to make ends meet.
The government's plea for private schools to reduce tuition fees is a clear indicator of just how dire the situation has become. For many, these costs are simply unsustainable, and the fear of not being able to afford quality education for their children is a source of constant anxiety.
The numbers don’t lie. A quality education in Kenya is expensive, and the costs are only rising. From tuition fees to uniforms, books, and extracurricular activities, the expenses add up quickly.
For instance, in public universities, the fee structure has been revised upwards, with some programmes now costing as much as Sh350,000 per semester. And that’s before you factor in accommodation, meals, and other living expenses. In private institutions, the costs are even higher, with some parents shelling out upwards of Sh300,000 per term.
These financial pressures are not limited to university education. The cost of sending a child to a good primary or secondary school can also be overwhelming, especially for families living on modest incomes. It’s no wonder that many parents are looking for ways to save and invest in their children’s education, and this is where hybrid education insurance policies come into play.
Imagine a policy that not only helps you save for your child’s education but also allows your money to grow over time. Sounds like a dream, right? Well, some insurance companies in Kenya are now offering hybrid education insurance policies that do just that. These policies combine the benefits of a traditional education insurance plan with the potential for higher returns through investments.
Here’s how it works: Parents or guardians can start by contributing as little as Sh1,000 per month into an investment fund. This fund is designed to yield returns over the duration of the policy, with a minimum guaranteed return of five percent. Unlike other education policies, you’re not locked into a fixed premium.
You can save additional amounts whenever you have extra cash, and these extra contributions are channeled directly into your investment fund, allowing your savings to grow even more.
But the benefits don’t stop there. Life is unpredictable, and emergencies can happen at any time. Whether it’s a medical emergency, job loss, or any other financial crisis, these hybrid policies offer a safety net. If you need to access your funds, you can withdraw money penalty-free, giving you peace of mind knowing that your savings are still working for you, even in tough times.
Moreover, if you face job redundancy, your premiums can be waived for up to six months, ensuring that your child’s education plan remains on track even when life throws you a curveball.
So, what makes these hybrid education insurance policies stand out from the crowd? First, they’re incredibly affordable. With the option to start saving with just Sh1,000 a month, these policies are accessible to a wide range of families, regardless of their income level.
This affordability means that more parents can start planning for their child’s education early, without the fear of being overwhelmed by high premiums.
Second, these policies offer unmatched flexibility. The ability to top up your savings whenever you have extra money is a game-changer. It allows you to take advantage of good financial periods and contribute more to your child’s education fund, increasing your chances of reaching your savings goals faster.
And in the last three years of the policy, you’re not even required to pay premiums. Any payments you make during this period are added to your investment fund, giving your savings an extra boost.
Finally, the guaranteed returns are a major plus. With a minimum return of five percent, you can be confident that your money is not just sitting idle; it’s growing. This is a significant advantage over traditional savings accounts and education insurance policies, which offer low interest rates.
At the end of the day, every parent wants to give their child the best start in life. But with the rising cost of education, this can seem like an impossible task. Hybrid education insurance policies offer a practical, flexible, and affordable solution that not only helps you save but also grows your money, ensuring that you can meet the financial demands of your child’s education without breaking the bank.
In a world where education is the key to a brighter future, investing in a hybrid education insurance policy is one of the smartest moves you can make for your child. It’s not just about saving money; it’s about securing their future and giving them the opportunities they deserve. So why not take that step today? Your child’s future is worth it.
Ambrose Dabani is the Britam Life Assurance CEO and Principal Officer [email protected]
