Chief Executive Officer of Allianz Life Insurance, Gideon Ataraire, has stated that parents seeking to cater for the educational needs of their children in the future must do so using insurance rather than turning to their savings.

Mr. Ataraire speaking at the launch of Allianz Life Insurance Eduflex plan stated that with the right insurance policy, parents would have the means of taking care of their children’s education even in the event they pass on.

“People always confuse insurance and savings. Each individual may have investment or savings or retirement needs. They usually take care of all these, forgetting that they have to protect their savings or investment.

And you protect these things by buying insurance so that in the event something happens, you don’t go take money from your savings or investment but the allow the insurance to take care of it,” he said.

According to the CEO, the Eduflex plan allows the policyholder to save towards their children’s education and also protects their savings from any exigencies as may arise.

Explaining how the plan works, Jane Kitome, Chief Retail and Marketing Officer at Allianz Life Insurance said Eduflex provides financial security by helping one meet education goals for their children.

The policyholder, she said, can choose a guaranteed death benefit that will be paid to his beneficiary and the payments that are made above the cost of insurance can grow in a savings fund.

“The insured and the beneficiary/beneficiaries enjoy life insurance protection during the term of the policy and an additional accidental injury cover for the beneficiary. This education savings plan is intended to accumulate funds for the sole purpose of funding the education of your children,” she added.

Mrs. Kitome commenting on the distinctiveness of Eduflex on the market said apart from the cover the policy provides, policyholders can access a percentage of the total insurance premium contribution after two years if no claim is paid on the policy and every two years thereafter if no claims are made.

The Deputy Commissioner of the National Insurance Commission, Michael Andoh, also speaking at the launch said insurance companies must task their sales agents to clearly define the benefits of insurance policies before selling them to their clients.

A detailed definition, he said, would engender trust between insurance companies and their clients.