ICEA LION EDUCATION INSURANCE (UsomiBora)

GLOSSARY

  • Sum Assured: The sum assured is the guaranteed amount that the beneficiary of a life insurance policy will receive in the unfortunate event of their demise.
  • Reversionary bonus: This is a guaranteed bonus added to the sum payable in the unfortunate event of demise of the insured or at the maturity of a with-profits assurance policy.
  • Terminal bonus: This is a type of bonus paid out when a with-profits insurance policy (usually an endowment) comes to a close. It is paid either in the unfortunate event of the demise of the insured when the policy matures or when the policyholder dies, whichever comes first. This bonus is not guaranteed and depends on the investment return over the lifetime of the plan.
  • Maturity value: This is the amount the insurance company pays the insured when the policy finishes/matures. This amount, included the sum assured and bonuses.

What does the ICEA Education Insurance do?

Our education insurance policy allows you to save towards your child’s education. The plan enables you to set aside a given amount every so often; monthly, quarterly or annually for a specified period of time so that you have sufficient funds to invest in the quality of education you desire for your child.

The policy also has a protection component that pays out the amount you intend to your nominated beneficiaries in the unfortunate event of your demise, so that the education dreams you have for them continue uninterrupted. At ICEA LION, we refer to this product as UsomiBora.

 

This is a life insurance policy that allows you to save towards your child’s education by enabling you to set aside a given amount periodically for a specified period of time so that you have sufficient funds to invest in the quality of education you desire for your child.

This policy also has a protection component that pays out the amount you intend to your nominated beneficiaries in the unfortunate event of your demise, so that the education dreams you have for them continue uninterrupted. At ICEA LION, we refer to this product as UsomiBora. 


What Are Some Of The Factors To Consider When Purchasing Education Insurance?

  1. The type of school you want for your child: Public or Private
  2. What curriculum you want for your child: Local or International i.e. CBC (Competency Based Curriculum), 8.4.4 or IGCSE et cetera
  3. The amount you are able to set aside periodically; this premium depends on the future cost of education determined by your preferred calibre of institution and inflation
  4. The duration between when you start paying and when you want the insurance policy to start paying you, that is either at primary, secondary or tertiary levels. This also depends on the education system you have enrolled your child in. Our education This policy allows for a minimum of eight (8) years and a maximum of seventeen (17) years. 

What Are The Key Features Of Our ICEA LION Education Insurance (UsomiBora):

    1. Affordability: In the unfortunate event you lose your source of income, you can reduce your premium payments up to Kes 2,000/- and you can later revise them upwards when your circumstances improve
    2. Flexible payment options: You can opt to pay premiums monthly, quarterly or annually which is suitable for self-employed as well as salaried employees
    3. Premium waiver in the unfortunate event of your demise: In this event, we take over the payment of the premiums until the policy attains maturity. At maturity, your beneficiary will be paid the Sum Assured plus the accrued bonuses, with your child as the primary beneficiary. 
    4. It grows Grow your savings: Our education policy combines the life insurance cover aspect with investment. The interest your premium contributions earn are given back to you in form of bonuses. ICEA LION offers We offer both terminal and reversionary bonuses. However, it is important to please note that the amount that is guaranteed is your Sum Assured, the bonuses are paid out subject to market performance during the duration of your policy
  • You can choose how your investment gets paid to you on maturity: You can get paid your maturity value in lump sum, in four (4) equal annual installments or in eight (8) termly payments that are structured according to the Kenyan Education System academic terms
  1. Tax-Free benefit: The Sum Assured will be paid to you Tax- Free upon maturity When your policy matures, you will get the full Sum Assured paid to you Tax-Free. 
  2. 15% tax relief: If you are employed and you advise your HR department about your policy, you get a 15% tax relief each month. If you are self-employed you can claim the same from Kenya Revenue Authority (KRA).
  3. Guarantee your child’s education: In the unfortunate event of your demise, your child can still have the quality of education you envisioned for them. That said, it is very important that you ensure you have structures in place to ensure that the people who are left in control of your funds use it as you desired. In order to protect your legacy for your intended purposes, it would be advisable to consider Estate Planning and perhaps set up a Trust. Click here to find out about out ICEA LION Milele Trust

HELPFUL TIP: We understand it may be challenging to figure out what works for you and your vision for your child. You can decide how much you want to be insured for and we will calculate the premium for you. Alternatively, you can decide how much and how frequently you want to pay and we will advise you on the resulting Sum Assured. Below is a summary of what you would earn should you start out with Kes 2,005/- per month for 8 years.

To help you along, click here to watch a video that explains how you can decide on the ideal investment to make for your child.

Now that you understand the basics of our ICEA LION Education Insurance (UsomiBora) and would like to insure with us, click here to get a quote. If you would like to talk to us in person, you can call us on +254 719 071 999 or request a call back by clicking here.

 

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