Life insurance under the SEAS
The State Educational Accumulative System (SEAS) is a special program of state support aimed at the formation of accumulative educational capital for children. Under this system, the State provides parents or legal representatives of children with the opportunity to organize savings accounts or investments to pay for the child's future education both domestically and abroad. The program provides for the allocation of a state premium in the amount of 5% or 7%.
The main idea of the SEAS is that families can accumulate funds for education at an early age of the child, which allows them to ensure access to high-quality education in the future. This approach helps parents to plan the financial side of the educational process more consciously and effectively and ease the financial burden later, when the child reaches the age of study in educational institutions.
In Kazakhstan, SEAS has been operating since 2013 with the participation of 4 second-tier banks, and since 2023, 5 life insurance companies have joined this system, which offer their individual savings products under the SEAS program.
Currently, 13,744 educational deposits totaling 24.2 billion tenge have been opened under educational savings deposit agreements within the framework of the SEAS.
Since the beginning of 2023, the number of cumulative insurance contracts under the SEAS has amounted to 748. The amount of collected insurance premiums for them is 153.3 million tenge.
The insurance program has a significant difference from similar products offered by the STB.
The educational accumulative insurance contract within the framework of the SEAS provides additional insurance protection, which is a significant advantage over the banking product.
Under the insurance contract, if an insured event occurs with the insured parent, due to which he will not be able to continue making contributions to the insurance organization, the amount that the parent planned to accumulate for the child's education will be paid by the insurance organization under the contract to the educational organization, taking into account investment income and the state premium. The payment made by the insurance company will not depend on how many contributions the policyholder has made to the insurance program.
The state premium is accrued annually under an insurance contract for a period of no more than 20 years in the amount of 7% for the socially vulnerable segment of the population and 5% for other categories of citizens, but not more than 100 MCI.
If the child is enrolled in a grant, the parent will receive all the invested money, including the state bonus and investment income.
At the same time, the parent and child are given the opportunity to continue saving for other educational services, or transfer the accumulated funds under the insurance contract in favor of another person. If the amount accumulated by the parent is higher than the tuition fee, the remainder is paid to the parent.
If the child cannot continue his education due to various life circumstances, the parent or his heirs also have the right:
reissue the insurance contract to another person who is a citizen of the Republic of Kazakhstan;
to receive the sum of money paid by the insurer to the parent, taking into account the investment income and with the preservation of the state premium in case of early termination of the insurance contract.
Contracts with CSJ are concluded for a period of at least 3 years, as well as bank deposit agreements.
In addition, in case of liquidation of an insurance company, the Insurance Benefit Guarantee Fund guarantees the full amount of payments.
Today, SEAS continues to improve and becomes more attractive to parents and their children thanks to reforms in the educational sphere.
An important innovation for the country this year is the adoption of the Law of the Republic of Kazakhstan "On Amendments and Additions to Some Legislative Acts of the Republic of Kazakhstan on the accrual of funds from the National Fund of the Republic of Kazakhstan to children, their payments and use" (hereinafter - the Law).
The law provides that upon reaching the age of majority, children will be able to decide for themselves what to spend the funds received from the National Fund: for education or for the purchase of housing. At the same time, the available savings under the concluded insurance contract under the SEAS can be supplemented with funds from the National Fund and subsequently directed to education.
If the recipient (child) does not use this money within 10 years after reaching the age of majority, the funds will be transferred to his retirement account.
The Agency's External Communications Division:
+7 (727) 2371089, press@finreg.kz