Last reviewed: 25 October 2026
Education insurance is one of the few products built specifically for one worry most Kenyan parents share: what happens to a child’s schooling if the parent who pays the fees dies, becomes disabled or loses their income. Every major life insurer in Kenya sells some version of it. This guide explains how education policies work, what Jubilee and Britam publish about their current plans, and how to judge whether one makes sense for your family.
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How an education policy works
An education policy is a life insurance contract. The parent or guardian is the life assured and pays premiums, monthly, quarterly, yearly or as a lump sum, for a set number of years. In return the insurer promises payouts timed for when school or university fees fall due, plus protection if the parent dies or is permanently disabled before the policy ends. In most plans, if that happens, the insurer stops collecting premiums but keeps the policy running, so the child still receives the planned payouts. That waiver of premium is the main thing that separates an education policy from an ordinary savings account.
Plans fall into two broad types:
- Traditional (endowment) plans: pay fixed, guaranteed amounts, usually a percentage of the sum assured, in the final years, sometimes with bonuses on top.
- Investment-linked plans: put your premiums into a fund. The payout depends on how the fund performs, sometimes with a minimum guaranteed return.
What Jubilee publishes
Jubilee Insurance lists two education plans in Kenya. Its Smart Scholar page describes a traditional education plan with premiums from KES 2,000 a month or KES 100,000 as a single premium, policy terms of 8 to 18 years and a minimum sum assured of KES 200,000. Annual bonuses of up to 4% of the sum assured may be declared, plus a terminal bonus at maturity. On the policyholder’s death, 50% of the sum assured is paid immediately and the policy continues with premiums paid by the insurer. Applicants must be aged 18 to 50.
The second plan, Faida Elimu, is investment-linked. Jubilee lists premiums from KES 5,000 a month or KES 100,000 one-off, terms of 5 to 15 years, a KES 100,000 last-expense payment, and 100% of the fund value at maturity. Its brochure lists a 4% fund management fee and reduced payouts on withdrawals in the first 36 months.
What Britam publishes
Britam’s education plans page covers several products. Msingi Poa, for example, pays four guaranteed cash payouts in the last four years of the policy, each equal to 100% of the sum assured. Premiums stop in the last three years, and terms run from 8 to 22 years for applicants aged 18 to 55. Britam’s investment-linked Soma Sure plan starts at KES 20,000 a month and states a minimum guaranteed return of 5% a year. It pays out 35% of the fund two years before the end, 50% one year before, and the balance at maturity.
Tax relief
Kenya gives insurance relief on qualifying life and education policies. Britam’s Soma Sure page puts it at 15% of premiums, up to KES 60,000 a year, for policies running 10 years or more. Confirm your eligibility with the insurer and claim the relief through your employer’s payroll.
Questions to ask before you buy
- When does it pay? Match the payout years to when your child joins senior school or university.
- What is guaranteed? Bonuses and fund returns are not promises. Plan on the guaranteed amounts.
- What if you stop paying? Ask what you would get back if you surrendered in year two or year five. Early exit values are often well below what you have paid in.
- What are the charges? Fund management fees, withdrawal fees and policy fees all reduce the final payout.
- Is the cover enough? Compare the sum assured with what four years of secondary school will realistically cost by then.
Is it right for you?
Education insurance suits parents whose income the family depends on, who want enforced saving, and who can keep paying for the full term. If cover against death is your main concern, a simple term life policy plus a separate savings plan may cost less. Our comparison of education savings plans and savings accounts sets out the trade-offs. For a sense of the fees you are planning for, see what parents pay for senior school.
This guide is general information, not financial advice. Product details are as published by the insurers in October 2026. Read the policy document before you sign.