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Investing in an education policy
tom_boy
#21 Posted : Tuesday, December 02, 2014 10:11:15 AM
Rank: Member


Joined: 2/20/2007
Posts: 732
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.
mkeiy
#22 Posted : Wednesday, December 03, 2014 10:35:44 AM
Rank: Member


Joined: 1/27/2012
Posts: 851
Location: Nairobi
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?
muganda
#23 Posted : Wednesday, December 03, 2014 10:46:47 AM
Rank: Elder


Joined: 9/15/2006
Posts: 3,865
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 smile


@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)

Swenani
#24 Posted : Wednesday, December 03, 2014 12:44:44 PM
Rank: User


Joined: 8/15/2013
Posts: 13,042
Location: Vacuum
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?

smile smile smile

These people rubbishing insurance are single men and women of wazua who do not have kids!
Poverty is the root of all evil
nakujua
#25 Posted : Wednesday, December 03, 2014 1:15:09 PM
Rank: Elder


Joined: 12/17/2009
Posts: 3,583
Location: Kenya
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
Boris Boyka
#26 Posted : Thursday, December 04, 2014 7:39:05 AM
Rank: Veteran


Joined: 11/15/2013
Posts: 1,976
Location: Here
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?

smile smile smile

These people rubbishing insurance are single men and women of wazua who do not have kids![/quotShame on you ] 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. !!!
mjuaji wa stocks
#27 Posted : Thursday, December 04, 2014 5:46:41 PM
Rank: Member


Joined: 1/16/2010
Posts: 671
Location: nairobi
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! smile

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!

bizbyte
#28 Posted : Thursday, December 18, 2014 3:18:08 AM
Rank: New-farer


Joined: 5/25/2010
Posts: 27
Location: Nairobi
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.
jerry
#29 Posted : Thursday, December 18, 2014 2:34:54 PM
Rank: Elder


Joined: 9/29/2006
Posts: 2,570
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! smile

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.
mjuaji wa stocks
#30 Posted : Thursday, December 18, 2014 5:43:48 PM
Rank: Member


Joined: 1/16/2010
Posts: 671
Location: nairobi
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?
smile

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!

Am
#31 Posted : Tuesday, December 23, 2014 8:23:40 AM
Rank: Veteran


Joined: 2/21/2012
Posts: 1,739
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..
mkeiy
#32 Posted : Tuesday, December 23, 2014 9:35:08 AM
Rank: Member


Joined: 1/27/2012
Posts: 851
Location: Nairobi
Am wrote:
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.



Way to go.Applause Applause Applause Applause
smano
#33 Posted : Tuesday, December 23, 2014 11:55:01 AM
Rank: Elder


Joined: 12/13/2006
Posts: 2,589
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!
nakujua
#34 Posted : Tuesday, December 23, 2014 12:52:59 PM
Rank: Elder


Joined: 12/17/2009
Posts: 3,583
Location: Kenya
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.
tom_boy
#35 Posted : Friday, December 26, 2014 9:38:21 PM
Rank: Member


Joined: 2/20/2007
Posts: 732
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.
Am
#36 Posted : Saturday, December 27, 2014 9:54:01 AM
Rank: Veteran


Joined: 2/21/2012
Posts: 1,739
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.


smile smile smile
Do not be anxious about anything, but in everything, by prayer and petition, with thanksgiving, present your requests to God..
Siringi
#37 Posted : Sunday, December 28, 2014 6:32:46 AM
Rank: Elder


Joined: 6/8/2013
Posts: 2,515
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..Sad Sad Sad

Ni hayo tu

Anybody taken a loan against premium(policy) as security ?
"😖😡KQ makes money for everyone except the shareholder 😏😏 " overheard in Wazua
Impunity
#38 Posted : Saturday, March 19, 2016 4:12:58 PM
Rank: Elder


Joined: 3/2/2009
Posts: 26,183
Location: Masada
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.

Anti_Burglar
#39 Posted : Tuesday, March 22, 2016 10:04:14 AM
Rank: Veteran


Joined: 9/11/2015
Posts: 1,024
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.
nashx
#40 Posted : Wednesday, October 23, 2019 10:07:26 PM
Rank: Member


Joined: 2/28/2014
Posts: 185
Location: Nairobi
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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