How to plan for your child's education: endowment and education plans in Ghana

A step-by-step way to save for school or university fees, how education and endowment plans work, and the questions to ask before you pay.

Before we begin

Quick answer: an education or endowment plan is one way to save for a child's future costs. It combines regular saving with life insurance protection. Whatever you choose, the plan only works if you give it a date, a target amount and a way to keep paying.

By the end, you should be able to:

• Turn "I'm saving for my child" into a goal with a date and an amount.
• Allow for inflation when you set the target.
• Work out roughly what you need to save each month.
• Compare plans with the right questions, and know what to ask about exit and death.
• Check that the insurer is licensed before you pay.

We will follow Ama, a fictional parent in Accra, and her five-year-old son Kwame. The names and figures are made up for teaching. They do not describe a real family or a real policy.

What is an endowment or education plan?

An endowment plan is a life insurance policy that also saves money. You pay premiums for an agreed period, called the term. When the policy matures at the end of the term, you receive a maturity benefit according to the policy terms.

Many insurers sell versions designed for school and university costs, often called education plans. A plan usually has two parts:

1. Saving: your premiums build a fund or a promised amount that is paid at maturity, or in stages.
2. Protection: if you die before maturity, the plan may pay a benefit, or may continue or waive future premiums, so the money for your child can still be there. The details depend on the plan.

Plans from different insurers are not the same. They differ in what is guaranteed, what is only projected, what is charged, how the money is paid out, and what happens if you stop. That is why the steps below matter more than any one product.

An education plan is an insurance product, not a bank account. Your premiums pay for the cover and for the insurer's costs, and what remains builds the savings. Read the terms to see how.

Step 1: choose when you want the money

"I'm saving for my child" is a wish. "I need GHS X in 13 years" is a plan.

• If Kwame is 5 and Ama wants the money when he turns 18, she has about 13 years, or 156 monthly payments.
• If her target is age 22, she has about 17 years.

Think about the dates when the biggest bills arrive. They might be senior high school, university entry, or the first year of accommodation. A single date is simpler. Some families set two: a smaller target for one milestone and a larger one for the next.

Step 2: decide what you are funding, and set a target

Write down what the money is for. For example:

• tuition and university fees
• accommodation
• books, a laptop and living costs

Then put a number on it, in today's prices. Suppose Ama thinks all of this would cost about GHS 100,000 today.

Now allow for inflation. Prices rise, so the same bill costs more cedis later. This is the figure many parents forget.

These are illustrations, not forecasts. Real inflation moves up and down, so check the latest figure from the Ghana Statistical Service. For her plan, Ama uses 8%, so her target is about GHS 271,962. See what inflation is and try the real return calculator.

Step 3: work backwards to a monthly amount

Once you have a target and a date, you can estimate what to save each month. The answer depends on how much your savings might earn. Ama's target is GHS 271,962 over 156 months:

The higher the growth, the lower the contribution, but growth is never certain, and a plan's charges reduce what you keep. Treat the middle and higher rows with caution. You can try your own numbers in the savings goal calculator, which has an interest field.

Then ask the insurer for a policy illustration. This is a document that shows, for your age and term:

• the premiums you would pay,
• the benefits and life cover,
• the guaranteed values and the projected values,
• the charges,
• what the plan would return at maturity, and what it would return if you stopped earlier.

An illustration is not a promise. It is a way to compare plans on the same page.

Step 4: compare plans, not promises

Do not choose a plan because someone says, "This one is good." Ask each insurer the same questions and compare the written answers.

Compare at least two or three plans. Put the answers in one table so you are comparing like with like. The next section shows what real plans look like, so you can see why these questions matter.

Real examples: education plans offered in Ghana

To make this concrete, here are education and endowment-style plans that Ghanaian life insurers and banks describe on their own websites. I read each provider's public page on 17 October 2026.

Please read this first.

• These are examples to learn from, not recommendations or rankings. MINT Digital has no link with any of these companies and is not paid by them.
• Web pages go out of date, and your own quote depends on your age, the term and your target. Always confirm the current terms in writing.
• Where a page does not say something, such as charges, this table says "not stated". That is not the same as "none". Ask.

At a glance

Plans sold by life insurers

SanlamAllianz Life: Education Plan

• How it works: savings premiums build a fund value, alongside life cover.
• Payout: the maturity benefit is paid in instalments over the last four years. The page lists 30%, 40%, 55% and then 100% at maturity. You can withdraw up to 50% of the fund value each year after the first three years.
• Cover: you choose a cover amount (minimum GHS 10,000). On death or total disability, the cover amount is paid in addition to the fund value. A retrenchment waiver pauses premiums for 3 months.
• Waiting periods: 6 months for death and disability cover, and 12 months for retrenchment.
• Inflation: a standard 10% automatic inflation protector applies.
• Other points: the minimum term is 10 years, and premiums start from GHS 100 a month. The child is the beneficiary, and the parent acts as trustee while the child is under 18.

Enterprise Life Assurance: Educare

• Payout: five yearly payments in the last five years of the term. The page gives them as 25%, 30%, 35%, 50% and then 100% of the fund value.
• Term: 7 to 18 years.
• If the policyholder dies: future premiums are waived. There is a 6-month waiting period on that waiver for accidental death. A nominated trustee makes the claim.
• Ages: the insured person must be 18 to 60 at entry, and cover ends at 70.
• Check: the page shows very small minimum premiums that may be out of date, so ask for the current figure.

SIC Life: Education Plan Plus

• Purpose: designed to fund education for you or your children.
• Term and entry: 10 to 20 years, subject to age 60. Entry age 18 to 50.
• Minimums: GHS 60 a month, and a minimum benefit of GHS 5,000.
• Withdrawals: partial withdrawals up to 60% of the accumulated fund.
• Inflation: an "Inflation Protector Factor" raises the sum assured when you raise the yearly premium by 5% to 30%.
• Not stated: disability cover, any waiver, charges and how the maturity benefit is paid. Ask.

Star Life Assurance: Child Lifeline Plus

• What it is: an endowment plan. A maturity benefit is paid at the end of the term, and a death benefit is paid to beneficiaries.
• Optional extras (riders): critical illness, total and permanent disability, retrenchment with a 12-month premium waiver, and personal accident cover for the child.
• Inflation: yearly premium increases can help you keep pace with rising costs.
• Policy loan: available after 24 months of steady premiums.
• Not stated: the minimum premium and the term. Ask.

Prudential Life Insurance Ghana: Education Continuity Assurance

• What it is: described as protection for a child's schooling. If a parent dies, an agreed amount is paid to support the child's education for a period of time.
• Disability: also covers total permanent disability. If a parent is temporarily disabled by an accident and cannot pay fees, Prudential says it will pay for the child's education for an academic year.
• Not stated: the amounts, the term and the premiums. The page does not describe a savings fund. It is listed under group insurance products, so ask whether an individual parent can join.

Plans sold through banks (bancassurance)

A bank sells these plans, and an insurer carries the risk. The bank is regulated by the Bank of Ghana, and the insurer must be licensed by the NIC. Always ask which insurer underwrites the plan. Neither page below names the insurer.

Stanbic Bank Ghana: Education Plan

• What it is: described as a protection and investment plan.
• How you set it up: choose a target of GHS 3,000 to GHS 200,000 and a monthly contribution from GHS 25. The term is 3 to 18 years.
• Death or disability: the target amount is paid on death or permanent disablement.
• Children: you can name up to six children, each with a percentage share.
• Withdrawals: after 12 months, up to 50% of the balance once a year for education costs.
• Surrender penalties: 50% of the investment balance in year 1, 10% in year 2 and 5% in year 3.
• Also: no medical exam is needed.

Absa Bank Ghana: Enhanced Education Policy

• What it is: a savings and life insurance plan.
• Minimums and ages: from GHS 100 a month, for customers aged 18 to 70.
• Death or total permanent disability: pays 12 months of the current premium plus the accumulated investment value.
• Options: a premium waiver and a retrenchment benefit are optional.
• Withdrawals: up to 50% of the cash value after a qualifying period that the page does not specify.

GCB Bank: Child Education Plan

GCB lists a child education plan in its bancassurance section. I could not read its full terms, so ask GCB which insurer underwrites it and request the details in writing.

Are these companies licensed?

The National Insurance Commission (NIC) licenses insurers in Ghana. Enterprise Life, Prudential Life, SIC Life and StarLife were all on the NIC's published list of companies in good standing in 2020, and a 2026 directory that checks against the NIC register lists SanlamAllianz Life, Prudential Life and Enterprise Life. The only authority is the NIC's current register. Companies merge and change names, so check it yourself before you pay.

What these examples teach you

1. Payout patterns differ. Some plans pay in instalments in the last years and some in one lump sum. When a page says "a percentage of the fund value", ask for an illustration that shows the cedi amounts and the dates. Your bills will come at particular times.
2. Death cover works differently. One plan pays a cover amount on top of the fund. Another waives future premiums. Another pays a target amount. Another pays for the child's schooling for a period. These are very different protections.
3. Leaving early can cost a lot. Stanbic's page states penalties of 50%, 10% and 5%. Suppose a balance of GHS 5,000 is surrendered in the first year: a 50% penalty would leave GHS 2,500. In the third year, a 5% penalty would leave GHS 4,750. Most pages do not state surrender terms at all, so you must ask.
4. Cover may not start straight away. SanlamAllianz lists waiting periods of 6 and 12 months, and Enterprise Life lists a 6-month waiting period on its accidental-death waiver. Ask what is covered in the first months.
5. Inflation features cost money. SanlamAllianz has a standard 10% inflation protector, Star Life offers yearly premium increases, and SIC Life has an inflation protector factor. They help your cover keep up, but your premium rises too. Make sure you can afford the higher payment.
6. Charges are rarely on the page. Most pages do not state them. Ask in writing how charges reduce your fund each year.

Where to go from here

1. Shortlist two or three providers, from this list or the NIC's register.
2. Give each of them the same inputs: your child's age, the date you want the money, your target in cedis (with inflation), and what you can pay each month.
3. Ask for a written policy illustration and the full policy terms.
4. Compare them side by side with the questions in Step 4, and check what happens if you stop (Step 5).
5. Verify the insurer and the agent with the NIC before you pay.
6. Pay only to the insurer's or bank's official account, and keep every document.

Step 5: ask what happens if life changes

Plans run for many years, and life changes. Before you sign, ask:

• If I stop paying in year four, is there a surrender value? How much, and what charges apply?
• Does the plan lapse, or become paid-up with a lower benefit?
• Can I increase or decrease my contribution?
• Can I withdraw or borrow against the plan early, and at what cost?
• If I miss a payment, is there a grace period?
• If I die or become permanently disabled, who receives the benefit, and what documents are needed?
• Is there a free-look or cooling-off period after I sign, when I can cancel? If so, how long is it?

These questions matter because a plan that looks good today can work very differently if you leave halfway through. In the early years, some plans return less than you paid. As the examples above show, some plans publish their penalties and some do not.

Step 6: automate it, and review it every year

Once you choose a plan, make it hard to forget.

• Set up a standing order or an automatic payment for the day after payday.
• Keep the policy documents and your contact details with the insurer up to date.
• Ask whether the plan has a built-in way to raise your cover as costs rise, such as a yearly increase. Check what it does to your premium.
• Review once a year: is the plan on track? Have school costs or inflation changed? Has your income changed?

A contribution that looked enough when Kwame was five may not be enough when he is fifteen. If costs rise faster than expected, you can top up, extend the plan, or add separate savings.

Your turn: work out another target

Kofi's daughter is 6. He wants money for her at 18. He thinks the cost is GHS 80,000 in today's prices, and he assumes 5% yearly inflation. About how much does he need, and what is the monthly amount if his savings earn nothing?

Before you pay: check the insurer and the paperwork

• Confirm the insurer is licensed by the National Insurance Commission (NIC). Use the NIC's register and verification tool, not a link sent in a message.
• Check that the agent or broker is licensed too, and ask to see it.
• Read the full policy terms, not just the brochure. Look at the guaranteed values, charges, exclusions and surrender terms.
• Never pay to a personal mobile money number. Pay to the insurer's official account and keep the receipt.
• Keep copies of the application, the illustration and the policy.

Other ways to save for education

An education plan is one option, not the only one. Others include:

• a bank savings account or fixed deposit,
• Treasury bills, bought through a bank or licensed broker (see how T-bills work),
• a mutual fund or unit trust from an SEC-licensed manager (see mutual funds explained),
• a susu or savings group.

These can be more flexible, and some cost less, but they do not come with life insurance built in. Some families save separately and buy a basic life policy for protection. Which is best depends on your goal, time frame, discipline and how much protection you want. Compare the costs and rules in writing. See saving vs investing and investment types in Ghana.

Common mistakes to avoid

• Saving with no date and no target.
• Ignoring inflation when you set the amount.
• Choosing a plan because someone said it is good.
• Confusing a projected figure with a guaranteed one.
• Not asking what happens if you stop paying.
• Overcommitting to a premium you cannot keep up for the whole term.
• Never reviewing the plan as costs and income change.

Put it into practice this week

1. Write down your child's age and the date you want the money.
2. List what the money is for, and estimate the cost in today's prices.
3. Add inflation to get a target. Use the real return calculator.
4. Use the savings goal calculator to estimate a monthly amount.
5. Ask two or three licensed insurers for illustrations, and compare them with the table above.
6. Check each insurer on the NIC's register before you pay.

Figures as of 17 October 2026. Plan details are taken from each provider's own public web page on that date. They change, some pages are dated, and your quote will depend on your age, term and target. The calculations are illustrations.. Sources: National Insurance Commission: register of licensed insurers and verification tool, National Insurance Commission: licensed intermediaries, Graphic Online: NIC list of insurance companies in good standing (2020), Insurers Global: licensed insurance companies in Ghana, checked against the NIC register (secondary source), SanlamAllianz Ghana: Education Plan, Enterprise Life Ghana: Educare, SIC Life: Education Plan Plus, Star Life Assurance: Child Lifeline Plus, Prudential Life Insurance Ghana: Education Continuity Assurance, Stanbic Bank Ghana: Education Plan, Absa Bank Ghana: Enhanced Education Policy, GCB Bank: Child Education Plan, Ghana Statistical Service: inflation, Bank of Ghana: Treasury bill rates, SEC Ghana: licensed fund managers

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