Photo: Sagiomhza, Wikimedia Commons, CC BY-SA 4.0Education policy in Uganda
How school fees insurance plans work
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How an education policy works
Behind the marketing names, an education plan has three parts:
- Savings — premiums are accumulated and credited with interest or bonuses. Old Mutual describes a first phase of 5 to 10 years where contributions accumulate, then a payment phase of 1 to 5 years when the child joins the chosen school (Old Mutual).
- Life cover on the parent — a payment on death, plus a waiver of premium so the savings continue without the parent.
- Payout — a lump sum at maturity or instalments timed to school years.
Because it is a life policy, the Insurance Act's rule on insurable interest applies: section 133 of the Insurance Act, 2017 lets a parent or guardian insure the life of a minor, a husband or wife insure each other, and any person insure someone on whom they depend for support or education.
The plans insurers publish, side by side
From each insurer's own product page, seen on 28 October 2026. These are the insurers' statements, not Tulinde's assessment, and not a ranking:
| Old Mutual — SOMESA Plus | Prudential — Pru Edusave | Prudential — Pru EduSavePlus | Jubilee — Education Plus Plan | |
|---|---|---|---|---|
| Saving period | 5–10 years, then 1–5 years of payments | 5–20 years | 5–15 years | 5–20 years |
| Age of the parent (policy owner) | 18–65 | 18–60 | 18–60 | Up to 60 |
| Age of the child | 0–18 | Not stated | Not stated | Not stated |
| Minimum premium | Not stated | UGX 100,000 | Not stated | UGX 100,000 a month |
| If the parent dies | Future contributions waived (waiver of premium is listed as an optional benefit); optional life cover and child income benefit | 50% of the sum assured paid; 100% at maturity; premiums waived | 20% of the sum assured (up to UGX 10 million) as last-expense support, then 20% each year to maturity; premiums waived | 50% of the sum assured paid at once; premiums waived; 100% plus bonuses at maturity |
| At maturity | Regular pre-set payments until graduation | Lump sum including bonus | 100% of the sum assured plus bonuses, lump sum or instalments | 110% of the sum assured plus bonuses, lump sum or yearly instalments |
Sources: Old Mutual, Pru Edusave, Pru EduSavePlus, Jubilee. Jubilee also states a minimum sum assured of UGX 7 million to 10 million depending on duration, and that "all policy benefits are tax-free". Prudential says EduSavePlus bonuses are discretionary and not guaranteed.
If you stop paying: surrender and paid-up values
This is where education plans hurt families most, so read it before signing:
- Old Mutual: after 3 consecutive years in force the plan has a cash value; if you stop, a reduced paid-up plan is activated automatically, or you can borrow against the cash value or surrender it.
- Prudential EduSavePlus: a surrender value only after two full years of premiums; early surrender may result in a lower value than the premiums paid; a 90-day grace period, and a lapsed policy can be reinstated within 24 months.
- IRA: a lapsed life policy can be surrendered once it has acquired a surrender value, and the waiting period varies by company; some insurers give a 30-day cooling-off period to cancel a new life policy, as a company practice rather than a legal right (IRA FAQ).
How big this market is
IRA's Q4 2025 workbook does not report education plans separately; they fall under individual life, which brought in UGX 457,370.0 million of premium in 2025 — 46.7% of all life premium (our calculation). The life insurers licensed to sell these plans are listed in life insurance in Uganda and in IRA's list of insurance companies.
Before you sign an education policy
- Check the company is a licensed life insurer and the agent is on IRA's licensed agents list.
- Match the maturity date to the school calendar: when will the first payout come, and in how many instalments?
- Ask what is guaranteed (sum assured) and what is not (bonuses).
- Ask what is paid if the child dies — Old Mutual, for example, terminates the contract and pays a pro-rata sum assured.
- Get the surrender value table and the grace period in writing, and pay premiums to the insurer, not in cash to an individual.
- Keep the policy document: insurers ask for the original at maturity (Old Mutual and Prudential both say so).
If an insurer refuses to pay at maturity or after a death, follow how to complain to IRA Uganda.
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Frequently asked questions
What is an education policy in Uganda?
A life insurance savings plan for school fees: you pay premiums for 5 to 20 years, the insurer pays back with bonuses when fees fall due, and premiums are waived if the parent dies or is permanently disabled.
What is the minimum premium for an education policy?
Jubilee publishes UGX 100,000 a month for its Education Plus Plan and Prudential UGX 100,000 for Pru Edusave; Old Mutual does not print a minimum for SOMESA Plus. Ask for a quote for your target sum.
What happens to an education policy if the parent dies?
In the plans published by Old Mutual, Prudential and Jubilee, future premiums are waived and the plan continues to maturity; Jubilee and Pru Edusave also pay 50% of the sum assured immediately.
Can I get my money back if I stop paying?
Only once the policy has a surrender value — after 3 years at Old Mutual, after two full years of premiums for Pru EduSavePlus — and early surrender can return less than you paid.
Are education policy payouts taxed in Uganda?
Jubilee states that all benefits of its Education Plus Plan are tax-free and paid without deduction. Ask your insurer to confirm in writing for its own plan.
Sources
- Old Mutual Uganda — SOMESA Plus education plan (product page, seen 28 October 2026)
- Prudential Uganda — Pru Edusave (product page, seen 28 October 2026)
- Prudential Uganda — Pru EduSavePlus (product page, seen 28 October 2026)
- Jubilee Insurance Uganda — Jubilee Education Plus Plan (product page, seen 28 October 2026)
- Insurance Act, 2017 — IRA Uganda
- IRA Uganda — frequently asked questions (cooling-off and surrender value of life policies)
- IRA Uganda — Industry Performance Q4 2025, life and non-life workbook (Summary, Non life, Life, HMO's and Micro insurance sheets)
- IRA Uganda — licensed agents as of 9 August 2026