HOW TO PLAN FOR MY CHILD’S EDUCATION

By Meshack Miyogo

Ensuring that your child receives  quality education from pre-school to tertiary institutions is a crucial goal for any parent. With the ever-increasing costs of our children’s education, planning is no longer a luxury as it once was. In this regard, it is prudent for foresighted parents  to take    comprehensive education policies for their children. The  policy has many benefits and it comes in handy when parents are planning for their children’s education. Against this background, parents should consider the tips below:

Start early

To effectively plan for your kid’s education, you need to start  as early as possible. Knowing how long the children will be in school and for what period you intend to cover their education expenses is vital as it will direct you to the right policy details to consider.

With the competency based curriculum ( CBC)  currently  being implemented in Kenya, what is now considered basic education covers a period of  seventeen  years. Some parents may want a cover for higher education including tertiary institutions, which means that the saving period or term of the policy may vary from one child to the other. What is vital is having a conversation with a certified financial advisor once you welcome your child to the world. Using  his or her  expertise, a financial advisor is able guide you through the features of an education policy with your needs in mind. A parent is then able to make an informed decision that is based on   the reasons  which motivated  them to  purchase   the cover in the first place.

Uniquely, saving early  enables one to utilize the most valuable resource, and that is time. As a parent, you will have the choice to save a minimal amount spread over time, which in turn will give flexibility and the opportunity to meet other financial obligations.

Where the education journey has already begun, having this policy still stands out as the best shield to help your children  achieve   their   dreams.

Assess your financial goals

Once a timeframe is set, assess your financial goals, including the type of education you envision for your children and the estimated costs. Be it private or public, learning institutions have costs and depending on one’s financial muscle, a parent is able to select options around the education policy matching his or her needs without necessarily causing a strain in their daily lives.

Having a clear goal will help you determine the savings you need to accumulate as well as the premium payments required to achieve your objectives.

From the plethora of policies offered by underwriters locally, there has to be something for  –  be it long term or short-term, pricey or affordable. To  this end,  all needs are well catered for and have someone to shoulder the risks. However,  to safeguard your savings,  the reputation of an underwriter cannot be ignored. Ensure that you select an insurance company that is financially stable and with  a good claim settlement record.

Choose the right policy

Research on the  different education insurance policies offered by various insurers and choose the one that best aligns with your financial goals, risk appetite, and budget. Compare features such as how long you can have the policy, premiums, additional benefits, and flexibility before making a decision.

CIC academia for instance allows you to make a monthly premium of as low as Kshs.  2,000 and has a life cover and access to a loan facility as part of its benefit package.

Regularly review and adjust

Life circumstances and financial goals can change over time. Therefore, it is essential to regularly review your education insurance policy and make necessary adjustments to ensure it remains aligned with your evolving needs.

One key feature of an education policy is that it comes with both savings and protection components by enabling you to save money while providing a life cover for the parent or guardian. This ensures the protection of your child’s future in case of an unfortunate case such as the demise of a parent,  total permanent disability or critical illness. This  guarantees   continuity for the child.

Starting early, choosing the right policy, and staying proactive in your financial planning, are good steps in  ensuring  that your children have access to quality education and opportunities for success, regardless of the financial challenges that may arise along the way.

The writer is the MD CIC Life Assurance Ltd and can be reached via mdciclife@cic.co.ke