Children from birth to their age of 16 can become beneficiaries of the policy. The policy matures at the age 21 of the child. The maximum term of the policy is 21 years and minimum term 5 years.

The lump sum deposited with Kenindia is invested in various instruments to earn best return and these earnings every year are added to the capital invested. The latest interest rate that was declared after the valuation for the year 2022 was 11%. (The returns will vary according to the experience of the company from year to year and will be declared after that year’s valuation)

• The child (11th birthday onwards) is provided with a life insurance cover of three times of the initial amount deposited, but limited to Kshs. 250,000/- under a policy. Thus the plan has the double benefit of investment linked with life cover. The premiums for the risk cover are charged to the interest earned by the fund @ Kshs. 2/1000 of sum assured. Child cover is automatic and no medical report is necessary.

• The parent too can purchase the same amount of cover by paying Kshs. 7/1000 of sum assured. This is optional. Medical report is compulsory for the parent if the parent opts to get the life cover. The maximum entry level of parent should not exceed 50 years, when the parent life cover is co-opted in the policy. Consequently the parent’s life cover ceases at age 55.

• However, where multiple policies are issued on the same life (this applies in the case of both child and parent), the total aggregate insurance cover under all such policies will be restricted to Kshs 1,000,000.00 only, subject to fulfillment of the underwriting criteria.

• The premiums for both the child and the parent (if opted) will be deducted from the interest earned by the company on the amount deposited. Therefore there is no insurance premium paid up-front.

The amount can be withdrawn after 5 years without any penalty, for earlier withdrawals the costs to the company will be recovered.