As businesses face growing pressure to attract and retain skilled employees, many are reassessing whether their employee benefits still reflect the realities facing most working families. While retirement and medical aid remain employee benefits core offerings, forward-thinking employers are looking to provide benefits to their employees that address long-term financial risks beyond the workplace.
Education is one of the most significant long-term financial commitments for working families, so education protection is emerging as an attractive option to address one of the most pressing concerns of most employees. In response to this need amongst most working families in South Africa, FNB Employee Benefits now offers its Education Protector solution to businesses that recognise the importance of adding a further layer of protection onto their life and disability cover offerings.
The FNB Education Protector is designed to ensure that, should an employee pass away, their children’s education will continue uninterrupted – from school through to tertiary studies. “Group risk cover has traditionally focused on income replacement and lump-sum payouts,” explains Chris Cooke, Product Head at FNB Employee Benefits. “Education protection builds on that foundation by addressing a very real concern for working parents – ensuring their children’s education can continue, even if they’re no longer there to provide for it.”
FNB’s education protection solution does not aim to fund education upfront, but rather to safeguard it if the unexpected happens. If an employee holding the cover passes away, the school or tertiary fees for their children are paid directly to educational institutions, with additional annual top-up payments to assist with non-tuition costs like books, uniforms and transport.
The benefit covers up to five children per employee, from pre-primary through to tertiary education. School fees are covered up to R70 000 per year for pre-primary, R115 000 for primary school and R135 000 for secondary school. At tertiary level, the benefit pays up to R100 000 per year for local universities or R150 000 for international studies, with an additional R60 000 available for residence costs. An annual top-up benefit of R5 000 (for school-going children) or R15 000 (for tertiary students) is paid directly to guardians or students to cover expenses like registration fees, uniforms, books and transport.
The cover also accounts for natural fee increases as children progress through their education, with built-in allowances when they transition from primary to secondary school or from school to university. It even extends to honours degrees for students who enrol for a 3-year undergraduate qualification and accommodates one gap year after matric. All benefit limits undergo annual inflation-linked increases to ensure sufficient cover over time.
“It’s a risk benefit that employees place a lot of emotional value on,” Cooke explains, “and they take comfort in knowing it’s there. That sense of security builds trust and loyalty, which ultimately benefits the employer as well. And because the benefit is implemented at scheme level as a rider to life cover, it can be offered to an entire workforce at a low cost.”
There are also practical business considerations. For employers, the FNB Education Protector delivers tangible, outcome-based protection without adding complexity or extra administrative burden. And it alleviates the pressure they could otherwise face to support the education needs of families after the death of an employee. Cooke points out that Education Protection provides a clear, insured mechanism to manage that risk, offering certainty for both employers and the dependants of their employees, and creating an employer value proposition that can help attract and retain top talent.
“In today’s skills-challenged environment, employers have to do more than offer basic cover,” says Cooke, “they’re also expected to show understanding and compassion. FNB’s Education Protector benefit protection allows employers to go beyond standard risk cover offerings and demonstrate genuine care for employees’ families, without complicating their benefits framework.”
The Education Protector is available to businesses of all sizes and can also be accessed through independent financial advisors. For more information, employers and IFAs can contact FNB Employee Benefits at employeebenefits@fnb.co.za or call 087 312 1947.
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