How to plan for your child’s education #AD

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, but more of an advisable benefit for parents and guardians.

Here are tips to consider when planning for your child’s education:

Start Early

To effectively plan for your child’s education, you need to start planning as early as possible. Knowing how long they 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 CBC being implemented, what is now considered basic education covers a period of 17 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 their expertise, a financial advisor is able to 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 corresponds with the reason they were purchasing the cover in the first place.

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

Where the education journey has already begun, having an education policy still stands out as the best shield to help you achieve your 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 strength, a parent is able to select options around the education policy matching his or her needs without necessarily causing a strain in daily life.

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, all needs are well catered for, with insurers ready 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 has a good claim settlement record.

Choose the Right Policy

Research 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 product flexibility before deciding to buy the insurance cover.

CIC Academia, for instance, allows you to make a monthly premium of as low as Ksh.2,000. In addition, CIC Academia has a life cover for the parent and access to a loan facility as part of its benefits package.

Regularly Review and Adjust

Life circumstances and financial goals can change over time. Therefore, it is essential to regularly review your education 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, allowing you to save money while providing life cover for the parent or guardian.

This ensures the protection of your child’s future in case of an unfortunate event such as the demise of a parent or total permanent disability, or critical illness, guaranteeing continuity for the child.

Starting early, choosing the right policy, and staying proactive in your financial planning are good steps to ensure 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