Insurance Savings Plans Kenya 2026
Combine life protection with guaranteed savings - compare endowment, money-back, and education policies
What Are Insurance Savings Plans?
Insurance savings plans combine life insurance protection with a savings component. You pay regular premiums, and at the end of the policy term, you receive your savings with guaranteed returns - plus you're protected throughout the term.
Types of Insurance Savings Plans
Endowment Plans
Pay premiums for a fixed term (10-25 years). At maturity, receive sum assured plus bonuses. Ideal for long-term wealth building with life cover.
Money-Back Plans
Receive periodic payouts (e.g., 20% every 5 years) during the policy term. Great for regular milestone needs while maintaining life cover.
Education Savings Plans
Structured payouts aligned with school milestones. Premium waiver if parent dies. Ensures children's education regardless of circumstances.
Compare Insurance Savings Plans
| Company | Plan | Type | Min Premium | Term | Returns |
|---|---|---|---|---|---|
Jubilee Insurance⭐⭐⭐⭐⭐Market Leader | Fanaka Endowment Plan | Endowment | KES 3,000/month | 10-20 years | 4-6% guaranteed |
| Education Savings Plan | Education | KES 2,500/month | 5-18 years | 5% guaranteed | |
Britam Insurance⭐⭐⭐⭐Affordable Options | Britam Endowment Plus | Endowment | KES 2,000/month | 10-25 years | 4-5% guaranteed |
| Elimu Plan | Education | KES 1,500/month | 5-15 years | 5% guaranteed | |
CIC Insurance⭐⭐⭐⭐Low Minimums | CIC Smart Savings | Endowment | KES 2,000/month | 10-20 years | 4-5% guaranteed |
| Junior Achievers Plan | Education | KES 1,000/month | 5-18 years | 5% guaranteed | |
ICEA Lion⭐⭐⭐⭐Strong Returns | ICEA Endowment Plan | Endowment | KES 3,500/month | 10-25 years | 5-6% guaranteed |
| Child Education Policy | Education | KES 2,000/month | 5-15 years | 5% guaranteed | |
Sanlam Kenya⭐⭐⭐⭐International Backing | Sanlam Savings Plan | Endowment | KES 2,500/month | 10-20 years | 4-5% guaranteed |
| Sanlam Education Plus | Education | KES 2,000/month | 5-18 years | 5% guaranteed | |
UAP Old Mutual⭐⭐⭐⭐Money-Back Options | Money Back Plan | Money-Back | KES 3,000/month | 15-20 years | 15-20% of sum every 5 years |
| Education Protector | Education | KES 2,500/month | 5-15 years | 5% guaranteed |
Why Choose Insurance Savings Over Bank Savings?
Life Protection
Your family receives the full sum assured even if you pass away early in the policy, unlike bank savings.
Disciplined Savings
Commit to regular premiums with penalties for early withdrawal - helps you stay on track.
Tax Benefits
Insurance premiums qualify for tax relief under Kenya's Income Tax Act (Section 22B).
Guaranteed Returns
Unlike investment-linked plans, traditional savings plans offer guaranteed minimum returns.
How to Choose the Right Plan
Define Your Goal
Education funding? Retirement? General savings? Different goals suit different plan types.
Determine Your Budget
Only commit to premiums you can sustain for the full term. Early surrender loses value.
Compare Returns
Look at guaranteed returns vs. projected returns. Guaranteed is safer.
Check Company Ratings
Choose insurers with strong financial ratings and good claims settlement history.
Frequently Asked Questions
What is the minimum investment for insurance savings plans in Kenya?
Most insurance savings plans in Kenya start from KES 1,000-3,000 per month depending on the insurer and plan type. CIC offers some of the lowest entry points at KES 1,000/month for education plans.
Are insurance savings plans better than fixed deposits?
Insurance savings plans offer lower returns (4-6%) compared to fixed deposits (9-12%), but provide life cover as a bonus. They're ideal for long-term goals where protection is important. For pure savings with higher returns, fixed deposits are better.
Can I withdraw money from my insurance savings plan early?
Yes, but early surrender typically results in significant penalties. Most plans only return a portion of premiums paid if surrendered in the first few years. It's best to only commit to amounts you can sustain for the full term.
What happens if I miss premium payments?
Most insurers offer a grace period (30-60 days). If you continue missing payments, the policy may lapse or convert to a paid-up policy with reduced benefits. Some plans allow premium holidays after a certain period.
Are insurance savings plan returns taxable in Kenya?
Maturity proceeds from life insurance policies are generally tax-free in Kenya. Additionally, premiums paid qualify for tax relief under Section 22B of the Income Tax Act, up to KES 60,000 per year.
Need Help Choosing?
Compare fixed deposits for higher short-term returns, or use our savings calculator to plan your goals.