The main idea of SESS is that families may start accumulating funds for education at child’s early age, which allows them to ensure access to high-quality education in the future. This approach helps parents to more consciously and effectively plan the financial side of the educational process and ease the financial burden later, when the child reaches the age of studying in educational institutions.
13,744 educational deposits for a total amount of 24.2 billion tenge have been opened under educational savings deposit agreements within the SESS framework. Since the beginning of 2023, the number of endowment insurance contracts within the SESS framework was 748. The amount of collected insurance premiums on them is 153.3 million tenge.
According to the insurance contract, if the insurance event with the insured parent occurs, due to which they will not be able to continue paying premiums to the insurance organization, the amount that the parent planned to save for the child’s education will be paid by the insurance organization under the contract to the educational organization, including return on investment and state premiums. The payment made by the insurance organization will not depend on how many contributions the policyholder has made to the insurance program.
The state premium is annually accrued under insurance contract for a period of no more than 20 years in the amount of 7% for the vulnerable social groups and 5% - for other categories of citizens, but not more than 100 MCI.
If the child gets a fellowship, the parent will receive all the money invested, including the state premium and investment return.
On the other hand, the parent and child are given the opportunity to continue saving for other educational services or to transfer the accumulated funds under insurance agreement in favor of another person. If the amount accumulated by the parent is higher than the cost of education, the balance is paid to the parent.
Agreements with LICs are concluded for a period of at least 3 years, same as bank deposit agreements.
Photos are from open sources.
