ICEA Lion’s Usomi Bora – A Comprehensive Education Insurance Plan for Kenyan Families

Education is one of the greatest investments you can make for your child’s future. With the cost of quality schooling rising every year in Kenya, planning ahead is not just wise-it’s essential. The ICEA Lion Usomi Bora Education Insurance is a unique life insurance policy that empowers you to save systematically for your child’s education, while also providing a strong protection component in case of life’s uncertainties. This comprehensive guide will help you understand how Usomi Bora works, its features, benefits, and how Step by Step Insurance can support you as a trusted intermediary.

What Is Education Insurance and Why Choose Usomi Bora?

Education insurance is a special type of life insurance policy designed to help you save for your child’s education over a set period-monthly, quarterly, or annually-so you can afford the quality of education you desire. What sets education insurance apart from regular savings is its protection aspect: if the policyholder passes away, the insurance pays out the intended amount to your nominated beneficiaries, ensuring your child’s education dreams continue uninterrupted.

At ICEA Lion, this product is called Usomi Bora. It’s structured to combine disciplined savings with life insurance, giving you peace of mind that your child’s future is secure, no matter what happens.

Factors to Consider When Purchasing Education Insurance

When choosing an education insurance policy like Usomi Bora, consider the following:

• Type of School: Will your child attend a public or private institution?
• Curriculum: Are you planning for CBC, 8-4-4, IGCSE, or another system?
• Premium Affordability: How much can you set aside regularly, factoring in the future cost of education and inflation?
• Policy Duration: When do you want the policy to start paying out? This could be at primary, secondary, or tertiary level, depending on your child’s age and the education system.
• Flexibility: Can you adjust your premium if your income changes?

Usomi Bora allows you to save for a minimum of 8 years and a maximum of 17 years, giving you flexibility to align the plan with your child’s education milestones.

Key Features of ICEA Lion Usomi Bora Education Insurance

1. Affordability and Flexibility

Minimum Premium: If you lose your source of income, you can reduce your premium payments to as low as KES 2,000 per month, and revise them upwards when your circumstances improve.

Flexible Payment Options: Choose to pay monthly, quarterly, or annually-ideal for both salaried and self-employed individuals.

2. Premium Waiver on Death

In the unfortunate event of your demise, ICEA Lion takes over the payment of premiums until the policy matures.

At maturity, your beneficiary (usually your child) receives the Sum Assured plus accrued bonuses.

3. Savings Growth with Bonuses

Usomi Bora combines life cover with investment. Your premium contributions earn interest, paid back as terminal and reversionary bonuses.

The Sum Assured is guaranteed, while bonuses are based on market performance.

4. Flexible Maturity Payouts

You can choose to receive your maturity value as:

• A lump sum
• Four (4) equal annual installments
• Eight (8) termly payments, structured according to the Kenyan academic calendar

5. Tax-Free and Tax Relief Benefits

The full Sum Assured is paid tax-free at maturity.

Employed policyholders can get a 15% tax relief each month by informing their HR department. Self-employed individuals can claim the same from KRA.

6. Guarantee Your Child’s Education

The policy ensures your child’s education continues even in your absence.

ICEA Lion recommends considering estate planning or setting up a trust to ensure the funds are used as intended.

How Step by Step Insurance Supports You as a Trusted Intermediary

Step by Step Insurance acts as your expert guide and advocate in securing the ICEA Lion Usomi Bora Education Insurance. Here’s how we add value:

• Personalized Consultation: We help you assess your education goals, budget, and timeline to tailor the right Usomi Bora plan for your family.
• Application Assistance: Our team guides you through paperwork, documentation, and the application process to ensure accuracy and speed.
• Policy Customization: We help you adjust your premium, term, and payout structure as your circumstances change.
• Ongoing Support: From policy management to claims, we remain your point of contact for all matters related to your plan.
• Claims Advocacy: In the event of death or disability, we assist your family in navigating the claims process with ICEA Lion, ensuring timely and fair payouts.
• Regular Updates: We keep you informed about policy changes, bonus declarations, and relevant tax relief updates.

Comparing Usomi Bora with Other Education Insurance Plans

When to Choose Usomi Bora:

• If you want flexible payout options aligned with school terms.
• If you value the ability to reduce premiums during difficult times.
• If you want both guaranteed and performance-based bonuses.

Frequently Asked Questions

Who is eligible for Usomi Bora?

Any parent or guardian with an insurable interest in the child, subject to ICEA Lion’s underwriting and age limits.

What if I lose my income?

You can reduce your premium to as low as KES 2,000 and increase it again when your situation improves.

What happens if I pass away during the policy term?

ICEA Lion waives all future premiums and pays the sum assured plus bonuses to your beneficiary at maturity.

Can I change my premium or term?

Yes, you can revise your premium upwards or downwards as your financial position changes.

How are bonuses paid?

Bonuses are declared annually and paid at maturity, subject to market performance.

How do I claim tax relief?

Inform your employer’s HR department or claim directly from KRA if self-employed.

Tips for Maximizing Usomi Bora’s Value

• Start Early: The longer you save, the greater your potential bonuses and growth.
• Align Policy Term with Education Milestones: Match payouts with when your child will need school fees.
• Use Flexible Payment Options: Choose a payment schedule that fits your income pattern.
• Review Annually: Adjust your premium or term as your child grows or your finances change.
• Consider Estate Planning: Set up a trust to ensure funds are used for your child’s education.

Real-Life Scenario: Usomi Bora in Action

Case Study:

Mary, a 32-year-old mother, starts a Usomi Bora policy when her son is 5. She pays KES 3,000 monthly for 12 years. When her son joins secondary school, the policy matures. Mary chooses to receive payouts in eight termly installments, perfectly matching school fee deadlines. Tragically, if Mary were to pass away during the policy, ICEA Lion would continue paying her premiums, and her son would still receive all the benefits as planned, ensuring his education is never interrupted.

Conclusion

The ICEA Lion Usomi Bora Education Insurance is a robust, flexible, and affordable way for Kenyan families to secure their children’s educational future. With guaranteed savings, life protection, flexible payouts, and tax benefits, Usomi Bora stands out as a top choice for education planning. By partnering with Step by Step Insurance, you gain expert guidance, seamless policy management, and peace of mind that your child’s education is protected no matter what life brings.