How to plan your child’s school fees

Like most parents, you want your child to get quality education starting from preschool up to college. However, financing a child’s education might be challenging; you have other bills to pay but less income, especially in the wake of COVID-19 pandemic. To help ease the payment of school fees for parents, Cornerstone Insurance Plc has come up with education savings plans.

These plans help ensure parents don’t struggle in paying for their child’s education, in addition to that, some of the education savings plans cover the payment of child’s/children’s school fees in the situation of the demise of the parents.

Meanwhile, there are various ways to plan for children’s school fees. It could either be through a savings policy or purely protection where the wards are covered in the event of the death or job loss of a school-fees-paying parent in line with terms and conditions of the policy.

Therefore, the aim of this article is to briefly explain what education savings plans you should consider for your children. I will touch on two plans namely Children Education Fund (CHEF) and School Fees Guarantee (SFG).

  1. Children Education Fund

This is mainly a savings plan that assists in providing a lump sum over a period for the education of one’s children/dependants. However, if the policyholder dies during a specified period, the account fund balance plus the sum assured on the plan (outstanding premium as at the date of death) is paid to the named beneficiary; but if there is no death, the policyholder gets his total contribution with accrued interest at the expiration of the agreed period.

It can also be used as collateral for a loan during the policy period from any financial institution and has a cash value during the policy period subject to policy terms and conditions.


  • Policy can be surrendered after a minimum of one year in force, subject to policy terms and conditions
  • Policy loan, subject to a maximum of 70% of the fund balance after a minimum of one year in force
  • Policy can be tendered as collateral with any financial institution
  • Attractive interest rate
  • Annuity option at Maturity
  • The policy offers Tax exemption on proceeds of investment.


  • Minimum annual contribution of N60,000.00
  • Flexible payment of contribution (monthly, quarterly; half yearly and yearly)
  • Medical examination, at our expense, may be required where necessary for underwriting purposes
  • Minimum policy period is five years
  • Maximum age at entry is 50 next birthdays.
  • Death benefit equals future unpaid annual premium plus Policy Holder balance.

 2.  School Fees Guarantee

This product provides for the payment of a specified death benefit (guaranteed sum assured) provided death occurs within a specified period.


  • The policy is yearly renewable.
  • The policy will be written on non-medical basis
  • Maximum age at entry is currently fixed at 60 years.

Rider Benefits

In the event of the policyholder losing his/her job (especially now that COVID-19 pandemic is ravaging the world), the policy provides cover for the payment of the policyholder children’s education.

Benefits Payable

  • The policy will be a 1-year renewable term assurance product with a nominal death benefit e.g. N1,000,000.00 payable directly to the service provider e.g. School in case of school fees.
  • Job loss:
    • Payable to the child’s school directly
    • Job loss pay-out is for tuition only and excludes boarding fees, transportation and other fees
    • Benefit pays the next term’s school fees only and up to the limit of the benefit
    • Payable only if the start of the term + 14 days falls during the period of unemployment which shall not be for a period longer than 3 months
    • Policy will not settle any previously outstanding school fees due
    • Policy will use school invoice for tuition and other costs in claim settlement

Death Benefit

  • The death benefit will be cover under the main term assurance policy. The death benefit also has a 3month waiting period, but accidental death claims will be settled during this period.

Surrender Value Benefit

  • The product attracts no surrender value. Thus, no benefit is payable if premium payment on the product is discontinued.

Let’s discuss education saving plans suitable for your children; click HERE.

More importantly, ensure you keep safe.

If you have any symptoms such as Dry Cough, Shortness of Breath, or Fever. Please contact Nigeria Centre for Disease Control on 080097000010.


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