Insurance is a vital financial tool designed to manage risks and protect against unexpected financial losses. By purchasing an insurance policy, you receive protection for yourself, your family, and your assets. In the event of an incident, the insurance company compensates you or your beneficiary, ensuring financial stability during difficult times. Let’s delve into the different types of insurance and the specifics of education policies, a critical financial product for planning your child’s educational future.

Types of Insurance

1. Life Insurance Life insurance guarantees that a sum of money is paid to your beneficiaries in the event of your death. This ensures that your family is financially secure and can cover expenses such as funeral costs, debts, and daily living expenses.
2. Health Insurance Health insurance covers routine and emergency medical care costs. This includes doctor visits, hospital stays, surgeries, prescription medications, and other healthcare services, helping to manage medical expenses and maintain your health.
3. Homeowners Insurance Homeowners insurance protects your home and other property structures against natural disasters, unexpected damage, theft, and vandalism. This coverage helps you repair or replace your property, ensuring your home remains a safe haven.
4. Motor Vehicle Insurance Motor vehicle insurance helps pay claims if you or others are injured in a car accident or if you damage someone else’s property. It also covers accident-related repairs to your vehicle or replacement if it is stolen, vandalized, or damaged.
5. Travel Insurance Travel insurance covers costs and losses associated with traveling, including trip cancellations or delays, emergency healthcare, damaged baggage, rental cars, and rental homes. This ensures a worry-free travel experience.

Education Policy

An education insurance policy is a type of life insurance designed as a savings tool to cover your children’s school fees. This policy pays a lump sum to cover educational expenses at different levels, ensuring that your child’s education is secured financially.

Purpose & Proposition

The education policy is designed to provide annual income to coincide with the payment of education expenses for the nominated child or beneficiary. Key aspects include:

• Minimum Entry Age: 18 years
• Maximum Entry Age: 60 years
• Minimum Monthly Premium: 5000/=
• Term: 10-25 years

Features & Benefits

1. Maturity Benefit
   • 100% of the applicable sum assured is payable at maturity.
2. Death Benefit
   • Immediate death benefit of 50% of the applicable sum assured.
   • Accidental death benefit of 100% of the sum assured.
   • Waiver of premium on death of the policy insured.
   • Cash payouts remain payable when due.
3. Disability Benefit
   • Waiver of premium on death of the policy owner/insured.
   • Cash payouts remain payable when due.
   • Maturity benefit remains payable.
4. Critical Illness
   • 50% of the applicable sum assured is paid upon confirmation of listed critical illness medical conditions.
   • Waiver of premium.
   • Cash bonuses remain payable when due.
5. Tax Relief
   • 15% of the annual premium is eligible for tax relief.

Payout Schedule

• 6 years prior to maturity: 15% of the sum assured.
• 5 years prior to maturity: 15% of the sum assured.
• 4 years prior to maturity: 20% of the sum assured.
• 3 years prior to maturity: 20% of the sum assured.
• 2 years prior to maturity: 30% of the sum assured.
• 1 year prior to maturity: 30% of the sum assured.
• At maturity: 100% of the sum assured is payable.

Onboarding Requirements

To get started with an education policy, you’ll need:

1. Passport (bio data page and entry stamp page).
2. Work permit, diplomatic card, residential permit, driver’s license, or utility bill.
3. Notarized/public stamp on all required documents.
4. KRA Pin letter.
5. Duly filled and signed application form and original bank direct debit form.
6. First month’s premium payment (via Mpesa or banker’s cheque).

Premium Payment

First Month’s Premium:

• Paybill 541400
• Account: NEW

Monthly Premium:

• Deducted from your bank via direct debit on a specific date.
• Pay via banker’s cheque.
• Pay via Mpesa (using policy number-account number).

Policy Document:

• The policy document is sent to the client two weeks after issuance via email.