Since whole life insurance is majorly only payable at death, the discussion below will be based on the investment policies with living benefits.

Other than the partial or final maturity payments that a policy offers, a life insurance policy often have riders that enhance the cover benefits. Riders are additional benefits provided in a life insurance policy, most riders come at an additional cost. The various riders are discussed below;

• Waiver of premium- This rider provides a waiver of future premiums if the policy holder is diagnosed with a critical illness or is permanently disabled.
• Disability cover- This rider pays a lump sum amount if the policyholder in case he/she is partially or totally disabled due to an accident or a disease and then future premium is waived till maturity of the policy.
• Accidental death- This rider pays a lump sum amount in event of the death of policy holder due to an accident. This means that the family gets double the policy amount and future premium is waived to the maturity of the policy.
• Critical illness- This rider pays a lump sum amount in case the policy holder is diagnosed with a critical illness since treating such illnesses can be financially draining. The future premium is then waived till maturity of the policy.

• Education policies are the most common types of individual life insurance covers in Kenya. The education of a child/ dependent stretches over a long period of time, mostly from the age of 3 to around 24 years. This requires one to plan adequately for the education of their loved ones. An education policy comes in handy to help one achieve this goal by saving a small amount of money (premium) for a specified period time. This gives you a guarantee that whether you are alive or not, your children’s’ education will not be disrupted.What you need to know about an education policy;
  • The earlier you start the better, it is advisable to take an education policy as soon as the child is born, preferably within the first month. This will ensure that you save for a longer period and pay lesser premiums.
  • Opt for an adequate cover amount- choose a sum assured that will adequately cater for the education of your children. It is also advisable to pick one that you will be able to afford since premium is paid for a long period of time.
  • Education policies are majorly designed to start paying partial maturities some years before the maturity of the policy. For example, you can have a cover paying 15% or 20% of the sum assured annually five years before maturity, then a higher percentage paid as lump sum upon maturity of the policy.
  • Education policies like other life policies, should not be terminated mid- term since the policy holder will be penalized for this. In case a policy is terminated before 3 years, the policy holder loses all his savings and if above 3 years, he/ she can only access a portion of his savings which is referred to as surrender value.