Britam’s Boresha Elimu is an education policy designed to align with CBE Junior and Senior Secondary levels and IGCSE Lower Secondary level. It is an endowment plan, meaning it is a hybrid policy combining life coverage and a disciplined savings component.
The plan might appeal to you as it is tailored to meet the needs of individuals who are saving to meet some future education costs while still providing significant protection cover against death and total permanent disability.
Why is Boresha Elimu’s education policy suitable for the IGCSE and CBE curriculum systems? The policy pays 3 bonuses at maturity in the last 3 years of the plan. Each bonus is equal to the sum assured. So, if the sum assured is KES 1,000,000, each yearly bonus is equal to KES 1,000,000. In total, you shall get 3,000,000, equivalent to the 3 bonuses, spread across the last 3 years of the policy.
Under this policy, you do not pay the monthly premiums in the last 2 years of the plan. That means, for instance, if your policy has a term of 10 years, you only pay for the first 8 years. You get the bonus at the 8th, 9th, and 10th years.
Expected Payout Schedule
Bonus A: Year 8
Bonus B: Year 9
Bonus C: Year 10
Death Benefit = Bonuses (A+B+C)
Permanent Disability Benefit = Bonuses (A+B+C)
To get a feeling of it, use the education planning calculator provided here. The calculator gives you a demonstration of how a 3-bonus education policy works. The amounts provided by the calculator are for demonstration purposes. If you need the actual figures, a link is provided for requesting a free quote or advice.
Request Boresha Elimu Education Plan Quote
Boresha Elimu Education Savings Plan Quote Request
Please submit your child’s exact educational details below. A customized education savings plan proposal will be structured and sent directly to your WhatsApp.
The education savings plan gives desirable returns, catering for inflation over the years and at the same time, life protection.
Boresha Elimu’s Life Protection
What kind of life protection? Besides the maturity benefit, some of your savings go to your life protection against the unfortunate events of permanent disability due to illness or accident and death.
In case of these two events, where they occur, you stop paying the monthly premiums. This is known as the premium waiver. Britam pays your premiums until maturity. When the maturity time comes, the maturity payout is made as promised.
The policy also allows for an optional death cover where, besides being paid the maturity payout in the event of death, your family gets an immediate payout if the death of the policyholder occurs as they wait for the maturity benefit.
Boresha Elimu Entry Age & Policy Term
This education plan has a minimum entry age of 18 years and a maximum age of 60 years. This is one of the most generous entry ages in education policies, as we shall see later on as we cover more and more education plans, such as Msingi Poa.
The policy term of this cover ranges from 6 to 18 years. In simpler terms, you can save for your child’s future education for a period ranging from 6 years to 18 years, not more, not less.
The maximum age on cover in this plan is 70 years. What does this mean? It means that if you enter at age 60, you can only take a policy of 10 years or less and not more. If you are at the age 55 years old, you can only get a plan of 15 and below and not more, since you will be more than 70 years old while on cover.
We can develop a simple equation to give meaning to the entry age and policy term (years you intend to save for education) constraint/challenge.
Let:
a = age of the policy holder
b = the number of years you intend to save
It therefore implies a+b≤ 70
I hope this is clear and easier to understand.
Options: Without Medicals or With Medicals
If you adopt this education policy, you can choose either of the two options. Either without going through a medical checkup (without medical underwriting option) or going through a medical checkup (with medical underwriting option).
The key advantage of going through a medical checkup is that the total amount you can receive as bonuses has no ceiling.
The option of not going for a medical checkup caps the total amount you receive as bonuses at KES 15,000,000. Each bonus (sum assured) is capped at KES 5,000,000.
Rarely will you need a policy going above KES 15,000,000 in any education system.
What Happens When You are Unable to Meet the Monthly Contributions
If you are unable to contribute monthly to your education plan under Boresha Elimu, there are various options available to you depending on the stage of your policy.
If the plan is under 25 months and you are unable to pay and the policy lapses, you can decide to pay the arrears when you become financially stable again, and the policy becomes active again. If the arrears have accumulated a lot, you can request a policy redating, and you can start again.
If the policy is over 25 months and you are unable to meet your monthly contributions, three scenarios are possible. You can resume the policy at a later date and pay the arrears.
You can also choose the surrender value option to have your money back. The Britam insurance underwriters are the ones who determine that value.
The third option is to go for a paid-up option, where you let the money sit in your account up to the maturity period. In this case, you will receive lesser bonuses’ amounts since you didn’t save for the full period.
Why should you adopt the Boresha Elimu Education Plan?
- Higher Returns: Compared to most education plans, Boresha Elimu has high returns. It is sufficient to cater for inflation.
- Lower Policy Term: Boresha Elimu has a lower savings term (6 to 18 years) compared to many education plans. That means it accommodates even the latecomers, those who didn’t start to save earlier.
- Entry Age: The plan has a considerate maximum entry age of 60 years and a maximum age on cover of 70 years. This means it accommodates a wide range of age groups.
- Lower Cash Surrender Value Term: Policy has a lower cash surrender value term of 25 months. As I explained above, that means if you are unable to contribute monthly due to financial hiccups, you can opt out and ask for a cash surrender value. Many policies have a higher cash surrender value term of over 36 months.
- Accommodates All School Systems: You can use this plan to save for both IGCSE and CBE curriculum systems. You can also use it to save for tertiary level.
- High Sum Assured Without Medicals: If you choose to adopt the plan without going for a medical checkup, the capping of KES 15,000,000 is generous enough to cover any education level, either in CBE or IGCSE.
Key Notes You Should Consider Before Adopting It
- Requires Steady Income: If you have an unsteady income where your income flow is irregular, unless your irregular income is high enough that you can pay in advance until the next cheque, it will lead to a policy lapse. This is not good, especially when the policy is under 25 months.
- Savings Access: Like most education policies, you cannot access your money until maturity, unless you terminate the plan, which would be a very bad Idea. If you terminate the plan before maturity, you will get a cash surrender value that includes a penalty/charges.
- Does Not Cover All Education Levels: This plan does not cover education levels that take more than 3 years, since it offers 3 bonuses at maturity. This is where you turn to education policies such as Msingi Poa.
If you want to know more about the Boresha Elimu education plan, you can direct your question to the WhatsApp link provided or call. At the same time, you can request free quotes.
Next, we dig deep into Britam’s Msingi Poa Education Policy and find out what it offers.
