Thinking about your child’s future usually brings up two feelings: immense pride and a bit of financial panic when you look at how fast the cost of living is rising. We all want to give them the best start, but life is unpredictable, and “saving when I can” rarely gets the job done.
So if we can agree that we want the best for our children then investing in a child’s education is perhaps the most significant financial commitment a parent will ever make.
If you’re looking for a way to save for those high school or university years without stress or hidden surprises, the Absa Education Policy is worth a look. Think of it as a disciplined savings bucket with a built-in safety net.
Unlike market-linked investments that fluctuate with the economy, the Absa Education Policy is a guaranteed benefit plan. From the moment you sign up, your maturity amounts and bonuses are clearly illustrated and locked in, provided premiums are paid.
Parents can tailor the policy to their specific needs by selecting a sum assured ranging from Ksh. 100,000 to Ksh. 5 million, with flexible payment terms spanning 5 to 18 years.
The standout feature of this policy is its triple-action protection in the event of the policyholder’s death or permanent disability:
- Immediate Support: The policy pays out 10% of the Sum Assured immediately to cover funeral expenses or urgent lifestyle adjustments.
- Premium Waiver: Absa waives all future premium payments. The policy does not lapse; instead, it remains fully active at no further cost to the family.
- Guaranteed Maturity: Despite the cessation of premiums, the child still receives the full intended maturity benefits at the end of the original term.
Absa Bank Kenya has integrated several secondary benefits to the policy to help parents maximize their investment:
- Policies with a term longer than 10 years qualify for a 15% annual tax relief, capped at Ksh. 60,000 per year.
- Policyholders who opt for annual rather than monthly payments receive a one-month premium discount.
- To ensure your savings keep pace with rising school fees, you can opt for an “Inflation Guard” that increases your premiums and benefits by 5% or 10% annually.
Applying for the policy is easy and parents simply need their National ID or Passport and their KRA PIN to start the process.
Furthermore, the policy acknowledges that financial circumstances can change. If a parent can no longer afford premiums after three years, the policy can be converted to “Paid-Up” status. This allows the cover to continue at a reduced value without further payments, ensuring that the savings already contributed are not lost.
Upon maturity, the policy doesn’t just provide a one-time lump sum that might be spent quickly. Instead, it offers a structured payout over 4 or 8 years, aligning with the typical duration of high school or university cycles. This ensures a steady flow of funds when the tuition invoices actually arrive.
ABSA Education Policy key benefits
| Benefit Type | Description |
| Maturity Payout | Receive the full sum assured plus maturity bonuses. Paid in equal annual installments over 4 or 8 years. |
| Death/Disability | Immediate payout of 10% of the sum assured for lifestyle adjustments or funeral costs. |
| Premium Waiver | In case of death or disability, all future premiums are waived. The policy remains active, and full maturity benefits are still paid to beneficiaries. |
| Tax Relief | Policies longer than 10 years qualify for 15% annual tax relief (up to Ksh. 60,000). |
| Inflation Guard | Optional 5% or 10% annual increase in premiums and sum assured to protect against rising costs. |