How to Protect Your financial future with Insurance

How to Choose the Right Life Insurance Policy in Kenya

Several life insurance products in Kenya are designed to achieve different purposes (e.g., Level Term, Value Added Term, Education Policies, Endowment Investment policies, Anticipated and whole life, and Keyman Life Assurance ).

Each is unique based on an individual’s age, financial situation, and personal and family needs.

(1)Endowment Investment Policy

An endowment Investment policy is the most common in Kenya since it’s used to achieve both investment and pension alternatives. Sometimes, it is used in place of education due to its high return on investment and life cover.

It’s best for long-term savings in Kenya for both young and middle-aged individuals.

An Endowment With Profits investment policy is insurance that gives you a platform to lock and grow your savings by making regular payments over a specified period. An Endowment With Profits policy is best for anyone who wants to save up for a long-term goal and wishes to have a disciplined way to Save.

It’s also suitable for Kenyans abroad to invest in the period they plan to be away to achieve a disciplined way of saving and safety for their income.

It also gives a 15% tax relief every month. It also provides a tax-free maturity payment.

It’s good to consider a stable and very flexible company that will not lose your money in case of a lapse.

It’s also good to consider companies that have very little or no complaints launched against them through the Insurance Regulatory Authority(IRA)

(2)Education Policy Insurance

An education insurance policy is a type of life insurance that allows you to invest in your child’s education. The plan enables you to set aside a given amount every so often, monthly, quarterly, or annually for a specified period to have sufficient funds to invest in the quality of education you desire for your child.

It has a protection component that pays out the amount you intend to your child in the unfortunate event of your demise so that the education dreams you have for them continue uninterrupted.

What to consider when investing in an education policy in Kenya.

Step 1: Confirm the age of the child and how many years it will take him/her to start High school/ university.

Step 2: Identify the university you would wish to take him/her to.

Step 3: Confirm the annual cost of education at this university and multiply it by the number of years he/she will be there.

Step 4: Factor in inflation at 7 or 8% based on the years the child has left to go to university and determine the future cost of education.

Step 5: Work backward and determine the lump sum amount you would need today that, if you invest, will have grown to the future cost of education identified in Step 4.

Step 6: If you cannot afford the lump-sum amount, identify the monthly savings you need between now and then that would grow to the amount determined in Step 4

How to buy Life insurance in Kenya

What’s Value Added Term Life Assurance?

This term insurance is offered by only one company in Kenya. It rewards life. If the individual contributing survives the term, the premiums are paid back at the end of the term.

Key Man Assurance Policy

A key man Insurance Policy is a “Life Policy” that compensates a registered company or organization for the death of a director.

The proceeds may be used as a payoff to the company to help hire a new director or to their dependents as they determine the organization’s future.

It is vital to have a good Keyman Policy on directors, as the continuity of the business would be at stake if the directors died or became permanently disabled.

It is the company’s interest to ensure each director has this key Policy to protect the organization’s interest.

How to Use Investment Policies to Secure Your Future

Investment-linked policies can help clients grow wealth over time while offering life coverage.

We advise individuals to invest less than 10% of their income in an investment policy to secure their future.

Investment life insurance paired with investments protects family wealth in the event of a tragedy.

How to Leverage Endowment Investment Policies for Financial Goals

Endowment policies help individuals save for future expenses like home purchases, weddings, or retirement.

How to Plan for Your Child’s Education Using Education Policies

In Kenya, the cost of higher education is ever-increasing, and there are regular predictions and threats that student loans are about to be abolished. This calls for a planned way to see your children through campus.

Also, the best private universities in our country are costly and can make parents unaware. This calls for a good education policy with outstanding returns, provision of tax relief and tax-free maturities.

The best way to go around this is to start as early as when the plans to get children are put in place rather than when the children are born and already at school.

Starting early helps in selecting the right policy.

⁠How to Create a Secure Retirement Plan with Pension Plans

Pension plans provide financial stability during retirement.

With the above employer contributions, people can supplement their pension with other savings vehicles.

The higher the amount you retire with, the better Annuity you get in monthly payouts in Kenya.

This requires discipline and knowledge of who offers the best, most stable guaranteed returns or flexibility in payouts. Pension Transfers, Pension consolidation, and NSSF Tier 2 Contracting out for maximum benefits. We also advise and help with pension consolidation.

How to Maximize Your Retirement Income with Annuity Payment Plans

An annuity is a contractual agreement between you (the Annuitant) and an insurance company in which you make a lump-sum payment(s) and, in return, receive regular payouts, beginning immediately or at some point. The payouts continue as a regular income stream to you as the annuitant and cease in the event of your unfortunate demise.

The lump sum used to purchase an annuity could be accumulated savings during active working years in investment solutions such as a Personal Retirement Scheme or endowment policies.

“How to Protect Your Family’s Future with Life Insurance”

Life insurance can act as the foundation of any financial plan.

Whether you’re a young professional, at each stage, life insurance for new parents, homeowners, or retirees is necessary.

By James Wanyugi is a licensed Financial Advisor in Kenya.

He trains Individuals and organizations to achieve Financial wellness, planning, and advising on tools available to individuals and employees to achieve their financial goals.

His contacts to book for consultations are 0702391035 ; 0106672998

Jimmywanyugi@gmail.com.