saving for school fees Kenya

Planning for your child’s education is one of the most important financial decisions you’ll ever make. In Kenya, where the costs of quality schooling continue to rise, parents are increasingly seeking solutions that offer both disciplined savings and financial protection. The Old Mutual Elimika Education Plan is designed with these needs in mind, providing a structured way to save for your child’s future while ensuring their education remains uninterrupted, even if life takes an unexpected turn. Old Mutual, a trusted name in Kenya’s financial sector, brings decades of experience and reliability to this education insurance product, making it a top choice for families who want to secure their children’s academic journey.

Understanding Education Insurance in Kenya

Education insurance is more than just a savings plan—it’s a financial safety net. Unlike ordinary savings accounts, education insurance combines regular savings with life insurance, guaranteeing that your child’s school fees and educational needs are covered, no matter what happens to you as the policyholder. In Kenya, where inflation and rising tuition fees can make education planning challenging, education insurance policies like the Elimika Education Plan are invaluable. They ensure that funds are available for critical academic milestones, such as primary, secondary, or university education, even in the event of the parent’s death or disability.

Key benefits of education insurance:

• Provides guaranteed payouts for tuition and school expenses at various stages.
• Includes life cover, so premiums are waived and benefits paid if the insured passes away.
• Offers flexible payment options and can be tailored to your budget.
• Protects against inflation, ensuring your savings retain value over time.
• Some policies, including Elimika, offer tax-free benefits or tax relief on premiums.

Education insurance is ideal for any parent or guardian who wants to protect their child’s educational future and avoid the risk of interrupted schooling due to unforeseen circumstances.

Features of Old Mutual Elimika Education Plan

The Old Mutual Elimika Education Plan stands out for its flexibility, affordability, and comprehensive protection. Here’s what makes it unique:

• Affordable Premiums: Start saving from as little as KShs 2,500 or KShs 3,000 per month, making it accessible for most Kenyan families.
• Flexible Term: Choose a savings period of up to 21 years, allowing you to align the plan with your child’s education milestones—whether you’re planning for primary, secondary, or university fees.
• Staggered Payouts: Upon maturity, the plan pays out in staggered installments, so you receive funds at different stages of your child’s education, ensuring school fees are always covered when needed.
• Life Cover: The plan includes a life insurance component, so if the policyholder passes away during the savings term, the child’s education is still protected.
• Eligibility: Available to all lives eligible, subject to underwriting and age limits, and insurable interest in the nominated child.
• Premium Flexibility: You can adjust your premium and term to suit your financial situation.
• Maturity Benefit: At the end of the policy, you receive a lump sum or staggered payments to help cover education expenses.

This structure ensures that your savings grow over time and are available exactly when your child needs them most.

Benefits of Old Mutual Elimika Education Plan

Disciplined and Structured Saving:

The Elimika Plan encourages regular, structured savings, making it easier for parents to build up a substantial education fund over time. This disciplined approach is crucial in meeting the rising costs of education in Kenya.

Affordable and Accessible:

With low minimum premiums, the plan is within reach for most families, allowing more parents to start saving early and consistently.

Financial Security:

The life cover ensures that, in the event of the policyholder’s death, your child’s education is not disrupted. Premiums are waived, and the plan continues to provide the intended benefits, giving peace of mind to parents and guardians.

Flexibility:

You can choose the savings term and adjust your premium to match your child’s age and your financial goals. This makes the plan suitable for families saving for primary, secondary, or university education.

Peace of Mind:

Knowing that your child’s education is protected, no matter what happens, allows you to focus on supporting their dreams and aspirations.

Tax Benefits:

Premiums paid towards the Elimika Education Plan may be eligible for tax relief, making it a cost-effective way to save for education.

How Step by Step Insurance Acts as Your Trusted Intermediary for Old Mutual Elimika Education Plan

Why use Step by Step Insurance as your intermediary?

Step by Step Insurance is a leading education insurance agency in Kenya, partnering with top providers like Old Mutual to help parents find the best solutions for their children’s education. As your trusted intermediary, we make the process of securing the Elimika Education Plan simple and stress-free.

Our role includes:

• Personalized Consultation: We assess your family’s needs and recommend the right plan structure.
• Application Assistance: Our experts help you gather documents and complete the application accurately, speeding up approval.
• Policy Customization: We help you choose the most suitable term, premium, and payout structure for your child’s education milestones.
• Ongoing Support: From policy management to claims assistance, we remain your point of contact, liaising with Old Mutual on your behalf.
• Advocacy: If you ever face challenges, we advocate for you to ensure your needs are met.
• Education and Updates: We keep you informed about policy changes, new benefits, or updates that could affect your plan.

How to get started:

Contact Step by Step Insurance for a free consultation. Our team will guide you through every step, from needs assessment to policy activation, and provide continuous support throughout your education savings journey.

Comparing Old Mutual Elimika Education Plan with Other Education Insurance Options

With multiple education insurance products available in Kenya, it’s important to compare Elimika with other leading plans:

Key similarities and differences:

• All plans offer life cover and flexible terms.
• Elimika stands out for its long savings term (up to 21 years) and staggered payouts, which align with key education milestones.
• Britam’s Boresha Elimu Plan offers a unique “premium holiday” feature in the last two years.
• Jubilee’s Career Life Plus allows for multiple beneficiaries and offers bonuses at maturity.

When to choose Elimika:

If you want the flexibility of up to 21 years of savings, staggered payouts for different education stages, and affordable entry premiums, Elimika is an excellent choice.

Frequently Asked Questions About Old Mutual Elimika Education Plan

Who is eligible for the Elimika Education Plan?

Any parent or guardian with an insurable interest in a child, subject to age and underwriting limits, can apply.

What happens if I miss a premium payment?

Old Mutual typically offers a grace period. If you miss payments beyond this, the policy may lapse, but you may be able to reinstate it by paying arrears.

Can I change my premium or policy term after starting?

Yes, you may adjust your premium or term, subject to Old Mutual’s terms and conditions.

What if the policyholder passes away during the term?

The life cover ensures that premiums are waived, and the plan continues, providing the intended education benefits to the child.

How are staggered payments structured?

Payouts are made at key milestones, such as entry to secondary school, high school, or university, ensuring funds are available when needed most.

Can I withdraw funds early if needed?

Early withdrawals may be possible, but could reduce your final benefits. It’s best to discuss this with your intermediary.

What documents are required to apply?

You’ll need your ID, child’s birth certificate, proof of income, and completed application forms.

Step-by-Step Guide to Applying for Old Mutual Elimika Education Plan

1. Needs Assessment: Consult with Step by Step Insurance to determine your savings goals and the right term for your child’s education.
2. Document Preparation: Gather your ID, child’s birth certificate, and proof of income.
3. Application Completion: Complete the application with guidance from our experts.
4. Submission and Review: We review and submit your application to Old Mutual, tracking progress for you.
5. Policy Issuance: Once approved, you’ll receive your policy documents and payment schedule.
6. Ongoing Support: Step by Step Insurance will help with any future policy changes or claims.

Tips for Maximizing the Value of Your Elimika Education Plan

• Start Early: The earlier you start, the more your savings will grow, and the easier it is to meet your goals.
• Choose the Right Term: Align your savings term with your child’s education milestones for maximum benefit.
• Manage Premiums Efficiently: Set up automatic payments to avoid missed premiums and lapses.
• Review Regularly: As your child grows, review your plan to ensure it still meets your needs.

Case Studies and Real-Life Scenarios

Scenario 1: Young Parent Starting Early

Sarah, age 28, starts an Elimika Plan for her 2-year-old son, saving KShs 3,000 per month. By the time her son is ready for secondary school, she receives the first payout, with further installments available for high school and university.

Scenario 2: Family Saving for Secondary and University

The Mwangi family wants to ensure their daughter’s transition from secondary to university is smooth. They choose a 15-year term, aligning payouts with these key stages.

Scenario 3: Guardian Seeking Flexible, Long-Term Savings

John, a guardian to his niece, wants a plan that grows over time and pays out at different stages. He selects the 21-year option, ensuring funds are available for every major educational milestone.

Alternatives to Old Mutual Elimika Education Plan

Other education insurance policies in Kenya:

• Britam Boresha Elimu Plan
• Jubilee Career Life Plus
• CIC Academia Policy

Direct savings and investment options:

• Money market funds
• Fixed deposits
• Education unit trusts

Pros and cons:

Choose what best fits your family’s financial goals and risk tolerance.

Conclusion – Is Old Mutual Elimika Education Plan Right for You?

The Old Mutual Elimika Education Plan is a robust, flexible, and affordable way to secure your child’s educational future. With its long savings term, staggered payouts, and built-in life cover, it offers peace of mind and financial security for Kenyan families. Whether you’re saving for primary, secondary, or university education, Elimika can be tailored to your needs. If you value disciplined savings, protection against life’s uncertainties, and the guidance of a trusted intermediary like Step by Step Insurance, this plan is an excellent choice for your family.

Call to Action

Ready to secure your child’s future with the Old Mutual Elimika Education Plan?

Contact Step by Step Insurance today for a free consultation and expert guidance. Our team will help you compare options, customize your plan, and support you every step of the way.