NAIROBI, Kenya Aug 26 – Parents have been urged to consider long-term financial plans for their children’s education as a new school term begins, with rising education costs making it necessary for families to prepare for future expenses beyond the immediate back-to-school needs.
The planning is intended to help parents spread education costs over time while protecting their children’s education from unforeseen financial challenges.
An education policy can provide financial protection by ensuring that a child’s education plan remains funded if a parent dies or becomes permanently disabled.
Under the Absa Education Policy, future premiums are waived in such circumstances while the education plan continues towards maturity.
The policy allows parents to select a sum assured ranging from Sh100,000 to Sh5 million and a payment period of between five and 18 years, depending on their education goals and financial circumstances. Benefits are guaranteed provided the agreed premiums are maintained.
The call for early planning comes as parents contend with school fees, uniforms, books, transport and other costs at the beginning of a new term.
According to ABSA, education costs, particularly for private secondary and tertiary education, can continue to rise and put pressure on household budgets.
Starting an education plan early allows families to spread contributions over a longer period while building a dedicated fund for future education needs. This can give parents more flexibility than waiting until the costs become immediate.
The policy also provides an optional inflation protection feature that allows customers to increase their cover annually, aimed at helping preserve the purchasing power of the education benefits as costs rise over the life of the policy.
Parents may also qualify for tax relief on eligible policies with terms of 10 years or longer, according to the information provided.
Unlike ordinary savings, an education policy is structured to provide protection against circumstances that could prevent a parent from continuing to contribute.
The policy benefits are also defined at the outset, allowing families to plan around anticipated education expenses.
The emphasis on long-term planning comes as families focus on meeting immediate school expenses, but the financial demands of education extend beyond the current term.
Planning ahead can allow parents to prepare for subsequent stages of a child’s education while reducing the risk that unexpected financial circumstances interrupt those plans.
