The role of education insurance for a thriving future South Africa

Access to quality education remains a challenge for many, particularly in the face of financial uncertainties. In this context, education insurance emerges as a powerful tool for securing the educational journey of our children and fostering a more inclusive and prosperous society; education is the cornerstone of progress, societal advancement and economic growth.

Startup Futurewise firmly believes in the transformative power of education. Dedicated to establishing educational attainment and financial inclusion through innovative solutions tailored to meet the needs of South African families, its sole purpose is clear: to reimagine life insurance so SA’s children can thrive.

Futurewise COO Arno Jansen van Vuuren says by living this purpose, Futurewise provides assistance to parents/guardians, ensuring their children’s futures are secured, regardless of life’s uncertainties: “Futurewise has been built on the belief that equipping our children to be able to complete their schooling ensures a healthy, growing workforce that will play an essential role in South Africa’s economic growth into the future.”

Although a young company, Futurewise has a long history in education via its majority shareholder Kagiso Trust (KT), which was founded in 1985 during a period of intense struggle in South Africa. During this tumultuous time, KT strongly opposed apartheid by providing support to development institutions and initiatives across a range of sectors. After 1994, KT broadened its social vision through the establishment of Kagiso Trust Investments – and for the next decade focused on uplifting communities through targeted education and enterprise development programmes.

KT joined forces with Venture Capitalworks to build Futurewise, an innovative education solution poised to revolutionise the insurance industry by developing a better way to get insurance for education. By serving as “a tutor for today and a trustee for tomorrow”, Futurewise provides access to educational support via educational courses, tutor support and learning tools through the Futurewise Learning Hub, from the moment a policy is taken out.

Jansen van Vuuren explains: “This means our customers get meaningful value for their premium they pay from day one and equips parents and guardians with the resources and knowledge to actively participate in their children’s learning journeys, empowering them to become true advocates for education.

“And our commitment extends beyond mere support. We recognise that education is a lifelong investment with far-reaching implications. That’s why we offer an education insurance policy designed to cover the total cost of a child’s education, including uniforms, books and travel in the event of the death or disability of a parent or guardian. This policy ensures educational expenses are not compromised.”

In the event of unforeseen circumstances, Futurewise is able to step in to become trustees, paying educational institutions directly and managing all educational needs and payments. This not only provides financial security but also peace of mind, freeing caregivers from worry about their children’s educational journey.

The importance of education insurance becomes even more evident when considering the rising cost of education in South Africa. From primary school to high school and three years of tertiary education can cost anywhere between R1.5 million and R3.5 million.

Funeral policies or life insurance, while valuable, may not be specifically designated for educational expenses, leaving families financially vulnerable. Education insurance offers a sustainable solution to these challenges.

“By providing a dedicated policy that ensures direct payments to schools or educational institutions via a trust, we empower families to overcome financial barriers and secure their children’s educational futures. This not only breaks the cycle of poverty but also paves the way for a more equitable and prosperous society,” concludes Jansen van Vuuren.

Image credit: creativeart/Freepik