Education Policy: Back-to-School Costs and the Bigger Financial Picture
As a new school term begins, parents across the country are once again turning their attention to school fees, uniforms, books, transport, and the many other costs that come with giving their children a quality education. However, while back-to-school preparations often focus on meeting immediate expenses, they also provide an opportunity to think about a much bigger question: How prepared are you for your child’s future education needs?
Education as a Long-Term Financial Commitment
For many parents, the biggest financial milestone is not buying a home, growing a business, or upgrading a car; it is ensuring their children have access to the best opportunities. As education costs continue to rise, financing quality education requires more than good intentions. It demands a deliberate strategy that protects future opportunities regardless of what life may bring.
Beyond Savings: The Importance of Financial Protection
While traditional savings play an important role, education policies introduce a critical element that ordinary savings accounts cannot provide: protection. An education policy is designed to ensure that a child’s education remains funded even if the parent is no longer able to contribute due to death or permanent disability. This protection helps preserve long-term plans against life’s uncertainties.
Predictability and Premium Waiver
One of the most valuable features of structured education planning is predictability. Unlike market-linked investment products, education policy benefits are clearly defined at the outset, allowing families to plan with greater certainty around future education expenses.
The policy also includes a premium waiver benefit. Should the policyholder pass away or become permanently disabled, future premiums are waived while the education plan continues towards maturity, helping ensure the intended education benefits are still available when needed.
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Start Early to Build Greater Flexibility
The earlier parents begin planning, the more flexibility they have in achieving their goals. A longer investment horizon allows families to spread contributions over time while building a dedicated fund to support future educational needs.
How the Absa Education Policy Works
With the Absa Education Policy, parents can choose a sum assured ranging from KES 100,000 to KES 5 million and select a payment period between five and eighteen years, depending on their education goals and financial circumstances. Benefits are guaranteed, provided premiums are maintained as agreed.
Protecting Against Rising Education Costs
Furthermore, for many families, the challenge is not simply funding education today but ensuring those funds retain their value over time. Education inflation continues to outpace many household budgets, particularly for private secondary and tertiary education.
To help address this risk, Absa’s Education Policy offers optional inflation protection, allowing customers to increase their cover annually to help preserve purchasing power over the life of the policy.
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The Tax Advantage
Parents may also benefit from tax relief on qualifying policies with terms of ten years or longer, providing additional efficiency as part of a long-term financial plan.
Education as an Investment in Opportunity
Perhaps the most compelling reason to plan for education is that it goes beyond financial returns. A well-funded education creates opportunities, expands choices, and empowers future generations to pursue their ambitions with confidence.
Plan Before the School Fee Invoice Arrives
Ultimately, education planning is about more than paying school fees. It is about protecting a child’s opportunities and giving them the freedom to pursue their ambitions without their education being derailed by unforeseen financial circumstances.
The best time to start planning for that future is long before the first school fee invoice arrives.
About the author
Julia Nechesa Shisia is a seasoned financial services executive with more than 20 years of experience in banking, insurance, and bancassurance across East Africa. She currently serves as Executive Director, Bancassurance at Absa Bank, where she leads strategic initiatives to drive growth, innovation, and customer value.
Throughout her career, Julia has held senior leadership positions at leading financial institutions, including Stanbic Bank and Absa, successfully transforming bancassurance businesses and delivering sustained commercial growth. Under her leadership, Absa Bancassurance recorded more than 40% profit growth and over 30% revenue growth in 2023, strengthening its position in the market.
A passionate advocate for collaborative leadership, talent development, and innovation, Julia is actively involved in professional industry associations where she champions women’s empowerment and leadership development. She is also an alumnus of Harvard University’s Senior Executive Program Africa (SEPA), reflecting her commitment to continuous learning and executive leadership excellence.
