FNB Introduces Education Protector to Help Employers Support Working Families

As South African businesses compete for scarce skills in a tough economic climate, employee benefits are increasingly becoming a deciding factor in attracting and retaining top talent. Recognising that today’s workforce faces financial pressures that extend far beyond the workplace, FNB Employee Benefits has introduced Education Protector a solution designed to safeguard employees’ children’s education should the unexpected happen.

Traditionally, employee benefits have centred on retirement funding and medical aid. While these remain essential, many employers are now reassessing whether their benefit structures adequately address the long-term risks faced by working families. One of the most significant of these risks is the rising cost of education.

Education Protector responds directly to this challenge by ensuring that, in the event of an employee’s death, their children’s education can continue uninterrupted from early childhood through to tertiary studies. The solution is offered as an enhancement to existing life and disability cover, adding an extra layer of financial protection for families at a critical time.

“Group risk cover has historically focused on income replacement and lump-sum payouts,” says Chris Cooke, Product Head at FNB Employee Benefits. “Education protection builds on that foundation by addressing a deeply personal concern for working parents knowing their children’s education will be taken care of, even if they’re no longer there.”

Unlike education savings products, Education Protector does not fund schooling upfront. Instead, it provides protection if the unforeseen occurs. Should a covered employee pass away, school or university fees are paid directly to the relevant educational institutions. In addition, annual top-up payments are made to assist with non-tuition costs such as books, uniforms and transport.

The benefit covers up to five children per employee, from pre-primary level through to tertiary education. Annual cover limits are set at up to R70 000 for pre-primary schooling, 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 studies or R150 000 for international education, with an additional R60 000 available for residence costs.

To further support families, Education Protector includes annual top-up payments of R5 000 for school-going children and R15 000 for tertiary students, paid directly to guardians or students. These payments help cover costs such as registration fees, learning materials and transport.

The benefit is designed to evolve alongside a child’s educational journey. Built-in allowances cater for natural fee increases when learners transition from primary to secondary school or from school to university. It also accommodates one gap year after matric and extends cover to honours degrees for students completing a three-year undergraduate qualification. All benefit limits are adjusted annually in line with inflation to maintain meaningful protection over time.

According to Cooke, the value of Education Protector extends beyond financial support. “It’s a benefit employees attach a great deal of emotional value to,” he explains. “That sense of security builds trust and loyalty, which ultimately benefits employers as well.”

For businesses, the solution offers practical advantages. Implemented as a rider to life cover at scheme level, Education Protector can be offered to an entire workforce at a relatively low cost, without adding administrative complexity. It also provides employers with a clear, insured mechanism to manage the risk and expectations that may arise following the death of an employee.

“In a skills-constrained environment, employers are expected to demonstrate empathy as well as competitiveness,” says Cooke. “Education Protector allows employers to show genuine care for employees’ families while strengthening their overall employee value proposition.”

Education Protector is available to businesses of all sizes and can also be accessed through independent financial advisers. Employers and IFAs can contact FNB Employee Benefits on employeebenefits@fnb.co.za or call 087 312 1947 for more information.