How an education policy can safeguard your child's future

For many parents, the cost of education is a growing concern as the demand for quality schooling continues to rise.

And with inflation driving up the cost of living, ensuring a child’s uninterrupted education requires careful financial planning.

Experts say structured education policies are becoming a key solution for families looking to secure their children’s academic future.

An education policy is a structured financial product that combines savings with insurance, ensuring that even in cases of death, disability, or redundancy, a child’s education remains covered. Britam Life Assurance Business Development Manager Rahab Wangaruro says education policies offer a disciplined approach to saving while providing financial security.

“With rising inflation and unpredictable economic conditions, more parents are turning to structured education plans to avoid financial strain in the future,” says Ms Wangaruro.

Education policies are generally available in two forms—endowment plans and investment-linked plans. Endowment policies have fixed premium payments and guarantee a payout at maturity, aligning with a child’s college years.

Investment-linked plans, on the other hand, allow flexible contributions, with part of the savings invested in financial markets for potentially higher returns.

When choosing an education policy, Ms Wangaruro advises parents to consider factors such as policy maturity terms, inflation adjustments, tax benefits, and the insurer’s credibility.

Some plans allow early withdrawals or additional contributions. Ms Wangaruro notes that structured savings plans offer a safety net, ensuring education continues even when financial disruptions occur.