All You Need To Know About Getting An Education Insurance In Nigeria
When Mr. Adio who earns N250,000.00 per month attended University, the cost of fees was just N10,000 per year. He did not even have to worry about accommodation because it was free, after all, this was a Federal University.
Today, Mr. Adio’s child, Tobi is 10 years old, and the same university he attended costs N55,000 per year now. Accommodation is scarce on campus and students have to get off-campus hostels which cost between N450,000 and N500,000 per year. Not to mention that there is still pending cost of feeding a child in a school which is roughly N30,000 naira per month.
Tobi has also taken an interest in pilots and planes, and he says he wants to be an aeronautical engineer. To study this course in the future, Tobi would have to go to the US or Canada or consider studying at the only school taking this course in Nigeria – a private university. The cost of all these would run into millions, and from the looks of it, University for him is just 8 years away.
Mr. Adio is unaware of these expenses, and also, he is unaware of his child’s interest. He still thinks the cost of schooling would be like his good old days, and even if it has increased, it would not be so much.
A child’s education is usually the most important thing for a parent. You want to ensure that they have access to the best education. However, this rarely comes without a cost. In today’s world, the cost of getting an education, much less, a university education, keeps rising.
How then does one ensure that they are able to meet the educational demands of their children when the time comes? You may even want them attending a private school in Nigeria or a University outside the country. Given the inflation rate and uncertainties that plague life itself, how do you ensure your dreams for your child comes to fruition?
The answer is simple! An Education Insurance plan.
What is education insurance?
Education insurance is basically a plan which caters financially to your child’s education in the eventuality you are unable to provide for them in the future.
Who should buy an education insurance plan?
Any parent, guardian, and even grandparent(s) can buy an education insurance plan for their children/wards. If you value the future of your child, you should consider getting an education insurance plan for them.
When should you buy an education insurance plan?
You can buy this anytime. However, it goes without saying that the earlier you buy it, the better. That way, you can pay fewer premiums on the policy.
The FBNInsurance FlexiEdu Plan is an education insurance plan which helps you cater to your children’s education at a said maturity period.
What does the plan entail?
An intending policyholder takes out the plan with a minimum term of 5 years and a maximum term of 20 years. The maximum age in which the policyholder must be at maturity is 65 years and the minimum monthly premium payable is N5,000. Premium payments can be made monthly, quarterly, half-yearly, annually or even at once in one swoop. The policy also provides a minimum benefit of N300,000.00 in the eventuality of death.
Who is eligible to take out an FBNInsurance FlexiEdu Plan?
You must be at least 18 years and at most, 60 years old to take this policy for your child or ward. The benefit assured is only payable for death resulting from an accident. When death occurs due to natural causes, all premiums paid till the day of the death will be returned. When the policy is first taken, there is a 6 month waiting period, following which for subsequent renewals, there are no more waiting periods.
At maturity, the assured benefit is paid either as a lump sum or in 4 annual installments. In the case of death of the policyholder before the maturity, 10% of the sum assured will be payable annually to the beneficiary till 100% of the sum assured is paid.
Why you need to take out an education insurance policy today:
- Life’s uncertainties: Life happens, from death to illnesses. There are a lot of things that can come between your child and the future you have planned out for them. Many times, we think everything would go well, but things do not always go as we have planned. What do you then do in those situations?
- You can provide the education they want, and not just what they need: Tomorrow your child may have the intention of studying at choice universities or even select courses that are rare to find in your home country. This is when education insurance becomes a saving grace and acts as a buffer for the costs at the time. You do not want your child limited to certain schools which may not be good enough, simply because there is a lack of funds.
- Rising inflation rates: These days, inflation rates keep going on the rise. Sometimes, people say, “oh we will just save our money in the bank instead of taking out an insurance policy.” However, that isn’t even a great idea because the value of your money saved does not remain the same. It is always best to take out a policy.
- The rising cost of living: The cost of living keeps increasing. You do not want to get to a point where you are worried about the education of your child at the same time that certain basic needs are becoming even more pressing.
What education insurance is not
- Education insurance is not a life insurance plan: Though benefits are still paid out in the case of death, an education insurance should never take the place of a life insurance policy. Education insurance caters to your ward’s education, while a life insurance caters to your loved ones in the eventuality of your death.
- Education insurance should not take the place of your savings: People sometimes make the mistake of thinking that because they have taken an education insurance plan, then there is no need to save anymore. This cannot be farther from the truth.
- It doesn’t have to be for only one child: As with any other plan, you can name multiple beneficiaries. Simply state in what percentage they should get the benefits and name them individually.
Your will does not trump your education insurance plan: Many times, people do not keep their policies updated and think they can simply name a different beneficiary in their will. It doesn’t work that way. Your beneficiary should be clearly stated and duly updated in the case that it needs to be.