Education protection

What can education protection do for your child?

Education protection

A good education is one of the most valuable things a parent can pass onto a child. By educating the next generation we make it possible for them to find better paying jobs and more opportunities in the workplace. Education can improve individual lives by raising standards of living and increasing access to healthcare and housing. It can also bring big-picture benefits such as boosting the economy and increasing equality and security.

Whichever way how you look at it, giving your child the best education you can afford, is the gift of a lifetime. This is where education protection could prove extremely valuable. Life is sometimes unpredictable. Should circumstances arise where you can no longer provide for them, you would want to rest assured that you have done all you can to protect your children.

What is education protection?

Education protection is a form of education cover that provides a financial safety net to cover school fees and other educational expenses, should you not be around to pay for these yourself. Education protection gives your children greater chances at success in life because it provides a dependable way of ensuring their education can continue without disruption due to financial constraints, and potentially making a huge difference to their lives. 

Specifically geared to provide for your kids’ tuition if you pass away, education cover is not the same as an education savings plan. 

Not being around to see your children grow up is a very difficult prospect for any parent to contemplate, but it is important to put a plan in place and once you’ve done that you can enjoy peace of mind.

Benefits of education cover

It is an effective way to protect your children because it ensures their continued education by ring-fencing funds for their future educational needs. Education protection could be used to cover school fees, it can take care of personal care needs, stationery, food, transport and even tertiary education.

Children’s trust

If you are the parent of minors, it’s a good idea to establish a children’s trust, in addition to taking out education cover. A children’s trust is a type of testamentary trust, so you include it when drafting your last will and testament.

Establishing a children’s trust in your will means you have a legal arrangement in place where your assets will be managed for the benefit of your children by a trustee or trustees, who must also be named in your will.

Under South African estate law, a children's trust can release funds at specific times or for specific purposes, such as to cover school fees or for extracurricular activities that require things like specialised sports equipment or a musical instrument. A children's trust is widely considered a reliable way of making sure that the money in your estate will be used as you had intended. You can also decide the age your children must reach before they have direct access to the funds in your estate – the law does not stipulate this age, it is at your discretion.

If you have children, education protection is a vital part of financial planning because it can help secure your children’s future, no matter what life may bring. More than an investment, it is a gift that could pave their path to success.

Whether you’re in need of a will, life insurance, education cover,
or the power of all three, we have got you covered.