In Summary
  • I insist that you take an education policy for each of your kids and as soon as they are born.
  • I have an education policy running for my yet-to-be conceived second child.
  • I want to take out another one for my third child, Inshallah.
  • Do you have questions for the writer? E-mail:

A reader emailed with a question. Macharia said:

I read your answers to the question on Saccos. It was enlightening.

Therein, you touched on insurance (car, health etc) but not in detail. Please would you advise us, your followers of your articles, on a number of insurance policies/saving plan that one can get themselves into, to take care of an uncertain future, be it an education one for your kids or such.


Thanks and look forward to an educating read.


Thanks for writing in, Macharia.

I’ve said this once before and I’ll say it again: I truly appreciate it when you guys write in with your questions. It’s an opportunity for us to share knowledge and experiences with one another, and to learn from each other.

Ultimately, that’s what this column is for.

I’m a strong believer in insurance.

I mean, life happens – you could lose your primary source of income, you will retire, you could fall ill and be unable to earn your income, your kids will need to go to school, you may decide to return to school or to travel for a year across West Africa or Europe, or you may decide to set up a shop that sells swimwear for toddlers, something along your passions and hobbies... It’s an indefinite list.

Whatever it is that will happen – whenever it will happen, Lord knows – you’ll need cash ready in your hands.

Insurance is one of the ways of planning to have that cash for investment in your hands.


Most insurance products are sold by insurance salesmen. For some reason, most of them are men. (Nothing sexist there, just pointing it out.) These men are like bubble gum that sticks on the bottom of your shoes – they’re annoying, persistent and won’t leave you alone until you address them with all your attention.

They’re persistent for a reason, though: because everyone needs insurance, and no one can ever have enough insurance.

A word of warning – don’t rely on just the word of the insurance salesman. Don’t! They could be selling you scented air simply to meet their target and make a commission.

Before you put your signature down on those insurance forms, make sure to personally go to the office of the insurance company – not a phone call – and sit with one of the customer service administrators for the respective products, respective departments. Let them take you through the ins and outs of the policy.

Make sure to ask all the questions you need to. (On another day, another story, I will tell you which questions to ask before you invest in a particular policy.)

At the very basic level, Macharia, here are four personal insurance policies you must have in your investment portfolio:

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