Consider Getting an Education Policy for Your Child

All parents strive to provide their children with the best of everything, and that includes a good education. And an education policy is a necessity in case you are not around to fund such an education.

In South Africa today, the cost of a good education can run into hundreds of thousands of rand over the school and university career of a child. Most salary earners find it impossible to absorb education costs – not to mention all the associated extras – via their monthly income.

Education PolicyMore than ever before it is important to plan for your child’s education with accuracy and dedication.

Fortunately there are many structured investment plans and education policies available for your child’s education, which are obtainable from your life insurance company. If you hold life cover then it is easy to add a savings plan. Also you should provide cover for your child’s education in the case of your untimely death. Start your education planning as soon as your child is born.

Education Policy – What does it cost to educate a child?

While school, college and university fees comprise a large chunk of educational expenses, these are not the only expenses, by far! You must include school lunches, books, stationery, sports equipment, all of which are ongoing, repeat expenses. You must also take into account school hostel and university residence fees.

The cost of college and university is likely to soar in future. University fees and residence fees are a lot higher than the price of state schools and higher than many private school prices. Apart from fees and all the extras you are likely to need, you must include expenses relating to petrol costs, spending money, computer, cell phone, etc. etc. for the entire period that your child studies.

Education Policy – Get your financial advisor involved

Financial advisors are often confronted with parents puzzling about how they are going to fund their children’s education. Take into consideration the following:

  • The age of the child
  • The year he will start school and the year he will finish
  • The year he will start a four year college or university course and the year he will finish
  • What kind of schools you want your child to attend
  • Whether or not you want to include post-graduate studies in your calculations
  • If your child will be living at home or at a hostel / residence

Your financial advisor will assist you in coming up with a total amount you will have to raise in order to educate your child properly. It will be a huge amount, but don’t be daunted. Based on that, he will come up with the monthly amount you will have to put away.

Bottom line: Start investing early in your child’s education to have the best chance of covering all the expenses.

Education Policy – Time is the best friend of investment

Time is money, as all wise investors know. Start on the day your child is born to put away money for his education. You don’t want to be providing your child with education a burden. It should be a pleasure. It’s never too early to start saving for your child’s education. Get a quote now!


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All info was correct at time of publishing