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 meeting their children’s education needs. However, while back-to-school preparations often focus on meeting immediate expenses, they also provide an opportunity to think about a much bigger question: How prepared are you for your child’s future education needs?
For many parents, the biggest financial milestone is not buying a home, growing a business or upgrading a car; it is ensuring their children have access to the best opportunities. As education costs continue to rise, financing quality education requires more than good intentions. It demands a deliberate strategy that protects future opportunities regardless of what life may bring.
While traditional savings play an important role, education policies introduce a critical element that ordinary savings accounts cannot provide, protection. An education policy is designed to ensure that a child’s education remains funded even if the parent is no longer able to contribute due to death or permanent disability. This protection helps preserve long-term plans against life’s uncertainties.
One of the most valuable features of structured education planning is predictability. Unlike market-linked investment products, education policy benefits are clearly defined at the outset, allowing families to plan with greater certainty around future education expenses. The policy also 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 the intended education benefits are still available when needed.
The earlier parents begin planning, the more flexibility they have in achieving their goals. A longer investment horizon allows families to spread contributions over time while building a dedicated fund to support future educational needs.
Education Needs Outpacing Household Budgets
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 between five and eighteen years, depending on their education goals and financial circumstances. Benefits are guaranteed, provided premiums are maintained as agreed.
Furthermore, for many families, the challenge is not simply funding education today but ensuring those funds retain their value over time.
Education inflation continues to outpace many household budgets, particularly for 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 purchasing power over the life of the policy.
Parents may also benefit from tax relief on qualifying policies with terms of ten years or longer, providing additional efficiency as part of a long-term financial plan. Perhaps the most compelling reason to plan for education is that it goes beyond financial returns.
A well-funded education creates opportunities, expands choices and empowers 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.
The writer is the Principal Officer, Bancassurance, at Absa Bank
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