Education insurance offers various advantages including a guarantee the insured’s children attain a relevant education, according to Alphonse Ntwali, responsible for commercial services in SONARWA.

"In the first place, it’s an alternative way of saving because you don’t use your money in wasteful ventures” he said.

This means that if one took up an education insurance policy for the secondary school level, the child has to complete the primary level as well even if he/she lost their parents.

The policy is part of life insurance and is aimed at helping all classes of society who at least earn a certain level of income.

Life insurance, also called investment life insurance, whole life insurance, or permanent life insurance, is a policy to cover the eventual or immediate death of the insured. 

It is insurance against an event that will happen. Premiums are often much higher than with term life insurance, but they guarantee payout upon maturity because these policies are not term limited.

The policy matures upon financial payout at the time of death.
The insurance companies provide retirement packages, medical funds, and assurance of property coverage, but not many people here have recognized the advantages of education insurance.

Vicky Uwamurera is in charge of marketing life insurance in CORAR SA and says they accept insuring children at the nursery level.

Jean d’Aman Nibabyare however, chief of technical services in Soras, says they only accept insuring at the primary, secondary and university levels.

"In case of say death we proceed to educate the child regardless of the level the child is at,” he said. 

"For instance if a parent takes up insurance for the secondary level but unfortunately dies before the child actually reaches the secondary level, we pay 50 per cent of the child’s  primary fees.”

Uwamurera says a primary teacher at Kibungo is already benefiting from this insurance and explains a case involving a parent who goes blind.  

"She took up insurance for her child in primary so that if the child joins the secondary level, we start contributing to her school fees,’’ she said.

‘’Unfortunately she became blind when her child was still in primary three, the parent lost her job, so we are helping her by contributing 50 per cent of the child’s school fees”.

After the primary level, the insurance company starts paying the full amount that the child is supposed to get.

Nibabyare says the only challenges they face are appealing to people in low developed nations who generally fear to insure themselves.

"When you look at our population, the concept of insurance seems to be new, ‘’ said Ntwali.

‘’The other thing is the rich businessmen who think it’s better to invest their money elsewhere, than taking up education insurance.”

He added that it is better than banking your money in an account because with insurance there’s always a guarantee of receiving that money. 

Ntwali recognizes however, that banks offer higher interest rates than them.

In calculating the amount to be given to the clients every year, insurers say they consider some one’s age.

As one’s age increases, the risk also becomes high because death comes closer every year.

Therefore, considering the government’s strategy of having free education to all, education insurance is offering another alternative to accessing basic education in Rwanda. 

Ends