Education policies in Uganda: how they work and what to ask

An education policy, also called a school fees policy, sets money aside for school fees and pays it out on set dates, for example at the start of secondary school or university. You pay regular premiums until the payout dates.

What happens if the parent dies?

Some policies keep the plan going if the parent dies, so the fees are still paid. Not every policy does this. Ask whether yours does, and get the answer in writing.

What do people commonly watch for?

• Stopping early. If you stop paying before the end, you can get back less than you paid in.
• Fee rises. School fees tend to go up over the years. Check whether the payouts are fixed amounts or rise over time.

What questions are worth asking?

• What do I get back if I stop paying after one, three or five years?
• Do the payouts keep up with fee rises?
• Does the plan continue if I die, and who receives the payouts?
• Is the insurer on the Insurance Regulatory Authority's licensed list?

How does it compare with saving separately?

An education policy is one way to save for fees. Some families compare it with saving in a unit trust or treasury bonds and buying separate term life cover. Our savings goal calculator shows how much to put aside each month for a fees target, and how much life insurance do I need explains term cover.

Our insurance page explains what sets the price of an education policy.