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Investing in an education policy
Rank: Member Joined: 2/20/2007 Posts: 767
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The only insurance worth taking is commodity insurance ( e.g house, vehicle, machinery) , health insurance and life assurance ( pure whole life or pure term life). All other forms of insurance are a rip off. They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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Rank: Member Joined: 1/27/2012 Posts: 851 Location: Nairobi
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If one knows when they will die/be permanently incapacitated, no need for insurance.
But for the mere mortals like me, i don't want "THINGS TO TAKE CARE OF THEMSELVES" when i'm gone.
That's just being too irresponsible.
Do what you can, the rest God will take care. Just as the insurance co. could collapse, so do the plots, they could be grabbed or turn into another "Karen land".
After one has died, there are succession issues, getting grant. How long does that take? 6 months at the earliest? Then a few more months before actaul selling of the plot?
Where will the kid[s] be all that while? Hibernating?
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Rank: Elder Joined: 9/15/2006 Posts: 3,905
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radio wrote:muganda wrote:An education policy can be translated as - discipline + life insurance (if you die). Poor investment if you ask me. So I'd say put the money monthly by standing order (exercise discipline) into a market equity fund of your choice (e.g. Stanlib) then buy a small life insurance package (if you don't have one) Your children should appreciate their parents wisdom in time  @muganda, can you tell me a little more about this STANLIB Equity Fund. From their website, they have not mention the interest rates. Do you know how much interest rate they are paying? Ooops @radio, missed your query. Oh just picked an equity fund from the top of my head. StanLib were advertising, well backed, strong organization... http://www.stanlib.com/Kenya/Pages/Products.aspx (click on Equity Fund) http://www.stanlib.com/K.../Brochures/Brochure.pdf (Brochure)
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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mkeiy wrote:If one knows when they will die/be permanently incapacitated, no need for insurance.
But for the mere mortals like me, i don't want "THINGS TO TAKE CARE OF THEMSELVES" when i'm gone.
That's just being too irresponsible.
Do what you can, the rest God will take care. Just as the insurance co. could collapse, so do the plots, they could be grabbed or turn into another "Karen land".
After one has died, there are succession issues, getting grant. How long does that take? 6 months at the earliest? Then a few more months before actaul selling of the plot?
Where will the kid[s] be all that while? Hibernating? These people rubbishing insurance are single men and women of wazua who do not have kids! If Obiero did it, Who Am I?
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Rank: Elder Joined: 12/17/2009 Posts: 3,583 Location: Kenya
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mkeiy wrote:If one knows when they will die/be permanently incapacitated, no need for insurance.
But for the mere mortals like me, i don't want "THINGS TO TAKE CARE OF THEMSELVES" when i'm gone.
That's just being too irresponsible.
Do what you can, the rest God will take care. Just as the insurance co. could collapse, so do the plots, they could be grabbed or turn into another "Karen land".
After one has died, there are succession issues, getting grant. How long does that take? 6 months at the earliest? Then a few more months before actaul selling of the plot?
Where will the kid[s] be all that while? Hibernating? mambo ya kifo wachana nayo
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Rank: Veteran Joined: 11/15/2013 Posts: 1,977 Location: Here
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Swenani wrote:[quote=mkeiy]If one knows when they will die/be permanently incapacitated, no need for insurance.
But for the mere mortals like me, i don't want "THINGS TO TAKE CARE OF THEMSELVES" when i'm gone.
That's just being too irresponsible.
Do what you can, the rest God will take care. Just as the insurance co. could collapse, so do the plots, they could be grabbed or turn into another "Karen land".
After one has died, there are succession issues, getting grant. How long does that take? 6 months at the earliest? Then a few more months before actaul selling of the plot?
Where will the kid[s] be all that while? Hibernating? These people rubbishing insurance are single men and women of wazua who do not have kids ] or could be those who's family medical is covered by employer. Dont think that your choice is best. Shake your head and read the title of topic again. "investing in an education policy" Insurance is a BAD investment. Read we all know commodity and medical insrnc are necessary. also depends with age and ability of your children and capabilities next of keen. @sewani .... Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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Rank: Member Joined: 1/16/2010 Posts: 672 Location: nairobi
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Amani254 wrote:Mjuaaji wacha ujuanji!!!
Why are you comparing apples with nuts? A policy is a form of protection against a risk and that is different from an investment. Of course the same end is met holding all factors constant. Who says plots will forever be lucrative, they are for now and in the foreseeable future but long term, not so certain - money is shifting towards soft businesses.
I say if you can, do both a policy and investments. A policy safegaurds your child's education if you pop today, even before you accumulate enough to buy your plot. Please buy from either Jubilee or CIC .... i will be assured of dividends atleast! Ever wondered why only afew are rich and many poor and middle class? This is the reason ....... Why buy a policy if i can buy the insurance company? God gave me the power to make wealth ... Blessed the work of my hands & enabled be A SELF MADE BILLIONAIRE ...... TO GOD THE FATHER OF MY LORD JESUS CHRIST; BE THE GLORY NOW & FOREVER MORE!
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Rank: New-farer Joined: 5/25/2010 Posts: 27 Location: Nairobi
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Hi Wazuans,
Insurance and Investment are completely different things. Apples and nuts as has been said. The confusion is that the insurers / brokers try to offer a monetary benefit in case the risk does not materialize. The real benefit is if the risk materializes. Ofcourse such monetary benefit is negligible if you consider purely ROE. It only serves to talk about something else other than just dishing premiums and waiting years to get it back with a small thank you for diligently offering capital for another persons investment.
Insurance transfers obligation to the insurer when a risk materializes. If you will be there to meet your child's education expenses fully when they are of age, don't take a policy. If there is a chance (seeing we are mortals) of things not going according to plan, consider a policy.
As has been more wisely said, consider both actually. Don't put all your eggs in one basket.
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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mjuaji wa stocks wrote:Amani254 wrote:Mjuaaji wacha ujuanji!!!
Why are you comparing apples with nuts? A policy is a form of protection against a risk and that is different from an investment. Of course the same end is met holding all factors constant. Who says plots will forever be lucrative, they are for now and in the foreseeable future but long term, not so certain - money is shifting towards soft businesses.
I say if you can, do both a policy and investments. A policy safegaurds your child's education if you pop today, even before you accumulate enough to buy your plot. Please buy from either Jubilee or CIC .... i will be assured of dividends atleast! Ever wondered why only afew are rich and many poor and middle class? This is the reason ....... Why buy a policy if i can buy the insurance company? @Mjuaji. Buy Pan-Africa shares as well and advise accordingly! The opposite of courage is not cowardice, it's conformity.
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Rank: Member Joined: 1/16/2010 Posts: 672 Location: nairobi
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bizbyte wrote:Hi Wazuans,
Insurance and Investment are completely different things. Apples and nuts as has been said. The confusion is that the insurers / brokers try to offer a monetary benefit in case the risk does not materialize. The real benefit is if the risk materializes. Ofcourse such monetary benefit is negligible if you consider purely ROE. It only serves to talk about something else other than just dishing premiums and waiting years to get it back with a small thank you for diligently offering capital for another persons investment.
Insurance transfers obligation to the insurer when a risk materializes. If you will be there to meet your child's education expenses fully when they are of age, don't take a policy. If there is a chance (seeing we are mortals) of things not going according to plan, consider a policy.
As has been more wisely said, consider both actually. Don't put all your eggs in one basket. How about putting your eggs in ONE basket and watching that basket? Spreading yourself too thin doesn't help either. God gave me the power to make wealth ... Blessed the work of my hands & enabled be A SELF MADE BILLIONAIRE ...... TO GOD THE FATHER OF MY LORD JESUS CHRIST; BE THE GLORY NOW & FOREVER MORE!
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Rank: Veteran Joined: 2/21/2012 Posts: 1,739
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Very biased opinions posted here, depending on whether one has a policy currently or not. Of course a Kids policy is Good if one can afford it. My advise is spread all - buy Kids Insurance, personal accident policy etc, invest in land/stocks etc etc etc. Do not be anxious about anything, but in everything, by prayer and petition, with thanksgiving, present your requests to God..
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Rank: Member Joined: 1/27/2012 Posts: 851 Location: Nairobi
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Rank: Elder Joined: 12/13/2006 Posts: 2,589
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The purpose of these forums is to educate people, especially those who know what they know and don't care to know anything else... Insurance is not Investment and vice versa. Financial Quadrant = 4 key areas of finances that leads one to Financial freedom. 1. Manage Expenses 2. Once you Manage Expenses you're able to have enough to save (savings a/c, contingency fund etc) and invest (Land, Money Markets, Equities, Biz etc) 3. Protection - Risk Management (education policies, property insurance, life insurance etc). What happens if you ram a stationery lorry tomorrow? God Forbid! 4. Retirement - Longest holiday in your life. You're not working but you still need to eat and pay mounting health bills. Ni hayo tu... BEER IS LIVING PROOF THAT GOD LOVES US AND WANTS US TO BE HAPPY!
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Rank: Elder Joined: 12/17/2009 Posts: 3,583 Location: Kenya
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so after all the advice, for and against - who has benefited from an education policy, at least we see the reality on the ground - if whoever has benefited either as a student ama as a parent, please give the details.
when the policy was undertaken
the amounts involved
the process involved in the payouts
how much was paid for the fees ...
at least that will better arm those still undecided.
as for me I have never come across a beneficiary nor was I, tulisoma na loans, na bursaries plus parents pleading with the headmaster to allow the kids to stay in school.
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Rank: Member Joined: 2/20/2007 Posts: 767
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smano wrote:The purpose of these forums is to educate people, especially those who know what they know and don't care to know anything else...
Insurance is not Investment and vice versa.
Financial Quadrant = 4 key areas of finances that leads one to Financial freedom.
1. Manage Expenses
2. Once you Manage Expenses you're able to have enough to save (savings a/c, contingency fund etc) and invest (Land, Money Markets, Equities, Biz etc)
3. Protection - Risk Management (education policies, property insurance, life insurance etc). What happens if you ram a stationery lorry tomorrow? God Forbid!
4. Retirement - Longest holiday in your life. You're not working but you still need to eat and pay mounting health bills.
Ni hayo tu...
Good points. However , under protection, I don't think education policy should appear there. Those are a rip off and actually retard your journey to wealth. Same as for any endowments policy. Only a pure life or whole life offers value for money while giving the necessary protective assurance. They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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Rank: Veteran Joined: 2/21/2012 Posts: 1,739
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nakujua wrote:so after all the advice, for and against - who has benefited from an education policy, at least we see the reality on the ground - if whoever has benefited either as a student ama as a parent, please give the details.
when the policy was undertaken
the amounts involved
the process involved in the payouts
how much was paid for the fees ...
at least that will better arm those still undecided.
as for me I have never come across a beneficiary nor was I, tulisoma na loans, na bursaries plus parents pleading with the headmaster to allow the kids to stay in school. Do not be anxious about anything, but in everything, by prayer and petition, with thanksgiving, present your requests to God..
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Rank: Elder Joined: 6/8/2013 Posts: 2,517
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In totally unrelated news the annual tax waiver from insurance premiums is way much more than the dividends from some counters I care not list here..  Ni hayo tu Anybody taken a loan against premium(policy) as security ? "😖😡KQ makes money for everyone except the shareholder 😏😏 " overheard in Wazua
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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mkeiy wrote:mugz wrote:i was also considering the same thing...only that i knew opening an education policy was a no no! after reading this, shares here i come! Why can't you do both? insure and invest in stocks? I do both. I have two policies from Britam and one from Pan Africa. For Britam, you get annual payments from class one all through university and the sum assured on maturity. The temptation of doing something else with the premiums' money and the fact that the future is always uncertain, it's good to ensure that kids will be okay long after one is gone. How much does one earn from INVESTING in motor insurance? #It'sInsuranceNotInvestment! Eti annual pay from class one? What is "sum assured"? If I decide to pay kes.5000 per month for 10 years,what are options for "sum assured" for Britam? If I stop remitting monthly premiums at say 14th month,what will I get back? Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Veteran Joined: 9/11/2015 Posts: 1,024
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Impunity wrote:mkeiy wrote:mugz wrote:i was also considering the same thing...only that i knew opening an education policy was a no no! after reading this, shares here i come! Why can't you do both? insure and invest in stocks? I do both. I have two policies from Britam and one from Pan Africa. For Britam, you get annual payments from class one all through university and the sum assured on maturity. The temptation of doing something else with the premiums' money and the fact that the future is always uncertain, it's good to ensure that kids will be okay long after one is gone. How much does one earn from INVESTING in motor insurance? #It'sInsuranceNotInvestment! Eti annual pay from class one? What is "sum assured"? If I decide to pay kes.5000 per month for 10 years,what are options for "sum assured" for Britam? If I stop remitting monthly premiums at say 14th month,what will I get back? Prices of things 'appreciate'. Or to put it another way, the value of money 'depreciates'. 100,000 now will pay more school fees - but less school fees in 10 years time. Consider that when that 'financial adviser' comes along.
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Rank: Member Joined: 2/28/2014 Posts: 188 Location: Nairobi
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Every parent wants the best for their children. Hence, we tend to be emotional when it comes to choices on their learning. Education insurance policies use these emotions to profit from us. My goal is to help you make better choices. https://nashthuo.com/edu...rance-policies-in-kenya/Offering my personal finance knowledge for free
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