Factors that influence the choices individuals make to save for their children's education through insurance: a case of Makerere University

Abstract

This study seeks to examine the factors that influence the choices parents make to save for their children's education through insurance. This study adopted a cross-sectional research design and binomial logistic regression was used for analysis. A total of 150 respondents took part in this study, 55.33% of these were female and 44.67% were male. Only 15.33% of the respondents have an education insurance cover. 72% of the individuals find it necessary to save for their children's education through insurance, 18.67% of the individuals say maybe it is necessary and 9.33% do not find it necessary. The study indicates that individuals who earn below 200,000 are 0.057 (p = 0.006, C.I= [0.007,0.447]) times less likely to make the choice to save for their children’s education using insurance compared to individuals that earn between 1,000,001-4,000,000 whereas individuals that earn between 500,001-1,000,000 are 0.0 92(p = 0.009, C.I = [0.101,0.508]) times less likely to make the choice to save for their children’s education through insurance compared to those that earn between 1,000,001-4,000,000. Respondents that find it necessary to save for their children’s education using insurance are 4.015 (p = 0.010, C.I = [1.404, 11.486]) times more likely to make the choice to save for their children’s education through insurance. Therefore, income level below 200,000 (0.057) and 500,001-1,000,000(0.009) and finding it necessary to save for children’s education through insurance (0.010) have statistical significance on the choices that individuals make to save for their children’s education through insurance because these variables had a p-value less than 0.05 when binomial logistic regression was carried. In conclusion, even though a large proportion of respondents find it necessary to save for their children’s education through insurance, many do not have an education insurance cover. Insurance companies should take a serious initiative to educate the people about how education insurance works and how useful it is.