Parents urged to plan early for rising education costs
The planning is intended to help parents spread education costs over time while protecting their children’s education from unforeseen financial challenges.
Nairobi, Kenya – As the new school term commences, parents are being advised to begin planning ahead for their children's future education expenses, as growing costs place strain on family finances. This is a crucial step to help families manage education costs over time and safeguard their children's education from unforeseen financial hardships.
An education policy can act as a financial safeguard for families, ensuring a child's education remains funded in the event of a parent's death or permanent disability. Absa's Education Policy offers flexibility by allowing parents to choose a sum assured between Sh100,000 and Sh5 million and a payment period spanning five to 18 years, tailored to their educational objectives and financial situation. Premiums are waived if certain circumstances arise, enabling the plan to continue until maturity.
Parents are currently dealing with various education-related costs such as school fees, uniforms, books, transportation, and more at the start of the new term. ABSA highlights that education costs, especially for private secondary and tertiary education, are expected to increase, adding pressure to household budgets. By initiating an education plan early, families can distribute contributions over a longer period, which can prove more manageable than facing these costs all at once.
The policy also offers the option of inflation protection, allowing the coverage to increase annually. This feature is designed to maintain the value of education benefits as costs rise over time. Additionally, parents may be eligible for tax relief on policies with terms of ten years or more.
Unlike standard savings accounts, an education policy provides protection against potential situations that could hinder a parent's ability to contribute. Its benefits are predetermined, enabling families to plan for expected education expenses. The call for early planning arises as families prioritize immediate school expenses, but the long-term financial demands of education extend far beyond the current academic year.
By thinking ahead, parents can better prepare for subsequent stages of their child's education while minimizing the risk of unexpected financial setbacks disrupting their plans.
Written by urgent.news from Capital Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
