For every parent, having children is a precious gift. On the other hand, having children is also a big responsibility because all his needs, ranging from clothing, food, and boards, become the responsibility of parents. In addition, in order to prepare their future as much as possible, parents should also not miss the importance of providing the best educational facilities for their children.
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| Children's Education Insurance |
It's just that the cost of education since kindergarten, elementary, junior high, high school, to higher education at university is massive. Not to mention the need to buy school supplies, such as uniforms, books, to everyday allowances that of course can swell expenses. However, as long as you have sincere intentions, all children's educational needs can definitely be met.
In order for the financial burden to be lighter, not a few parents who use financial services in the form of education insurance. Preparing the cost of education with children's education insurance is no longer a surprising thing, especially the benefits are quite significant. Therefore, for those of you parents who need a solution to prepare children's education optimally, check out reviews about what is education insurance and tips on choosing the following.
What is Education Insurance?
Education insurance is a type of insurance that has the benefits of protection against children's education in the future. This product is generally accompanied by an investment program that is more profitable for the customer or policyholder.
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| Children's Education Insurance |
However, so that the benefits of education insurance obtained more maximally and optimally, try not to choose educational insurance products with investment benefits only. Instead, make sure that the insurance company also includes life protection for parents or breadwinners.
There are many reasons why this education insurance is important to prepare. One of them is that the cost of education every year will continue to increase by about 10 to 15 percent so that it is much difficult to reach by parents.
This of course makes simply having savings not effective enough as an effort to prepare children's education because it must be affected by inflation. Even so, in choosing children's education insurance, make sure that you understand very well the benefits needed and what risks may occur.
Various Benefits of Education Insurance
In general, there are 2 main benefits of having children's education insurance. The two benefits are:
1. The Cost of Education That Continues to Experience Inflation
It is no longer surprising that the cost of education every year continues to increase consistently. Based on data from the Central Statistics Agency, the increase in base money to enter school alone by 10 to 15 percent per year.
If the nominal base money is now 500 thousand Rupiah, then next year will increase to 530 thousand Rupiah. The increase will continue over the next few years until the nominal is much harder to reach.
The above costs of course are not included in the factor of increasing monthly SPP costs, uniform purchases, books, stationery, and so on.
Plus, for parents who plan to enroll their children in private schools, the cost of education that needs to be prepared will be much greater. Compared to public schools, the increase in the cost of education in private schools can reach 40 percent per year.
If calculated the cost of children's education ranging from kindergarten to college, in the next few years, the cost needed can reach a nominal of hundreds of millions, or even billions of Rupiah. Therefore, if not prepared carefully, it is impossible to be able to provide a decent level of education for children in the future.
2. Risks to parents
As a parent, children are the most beautiful treasures ever obtained in life. Therefore, the affection for him can never be contained so it is not uncommon for parents to be willing to sacrifice everything for the good and needs of their children.
However, as age continues to run, parents will certainly not be able to be by their child's side all the time. In addition, as the main breadwinner, parents also cannot be completely spared from unexpected and unpleasant risks that may occur in the future. Examples are job loss, risk of early retirement, accidents, permanent disability, until death.
If you are in this condition, it is certain that parents cannot prepare the maximum cost of children's education. However, another case when you have prepared insurance for him. No matter how the condition of parents in the future, children's education will still be guaranteed because they are protected by protection from education insurance.
How Education Insurance Works
In general, education insurance has elements or benefits of investment. Therefore, the insurance product tends to be in the form of unit link alias is not pure insurance. For more details, here is an explanation of how education insurance works.
- Customers make premium payments regularly to insurance companies.
- Then, the investment manager at the insurance company will invest the premium funds into investment instruments, such as mutual funds and debentures.
- At the time specified on the policy, generally when the child of the customer enters the school level, he can file a claim based on the investment results in the insurance product, and obtain the sum insured.
The Risks of Having Education Insurance
Although it offers a variety of benefits, education insurance still has a number of risks that need to be considered by each user. Here are some educational insurance risks to know before applying for it.
1. Provide Different Benefits Than Educational Savings
Some of you may think that paying premiums on education insurance is the same as saving activities. Although it can benefit more from its investment services, but investments can also provide risk of loss. So, if the investment activity loses money, the profits obtained also become less than optimal.
2. Additional Costs
Almost all insurance customers must think if the ceiling or the amount of funds obtained is greater than the total premium deposit paid. Although it has an element of investment with profit opportunities, keep in mind if there are additional costs that need to be paid on education insurance. Some of these are insurance costs, admin, and a number of other costs.
In the first few years, your premium payment may be deducted for the fee. So, the amount of investment in education insurance in the early days will not be as much as expected.
3. Premium Deposit Extension
Some people may only choose education insurance with premiums that are not too long. Even so, if the investment profit or the amount of sum insured has not reached the desired nominal, the customer needs to extend the duration or term of payment of the premium.
4. Errors in Investment Activity
Nothing is certain in investing. Although it has done technical and fundamental analysis in such a way, the risk of loss when investing may occur, including investing in this education insurance. If the mistake turns out to be done by the investment manager, it is certain that the education funds that will be obtained will not grow, or even decrease.
5. Origin of Applying for Insurance Without Understanding the Contents of the Policy
It is appropriate that customers of any insurance product must understand the terms and all statements on the policy. Without looking at every point on the insurance policy and understanding it, how can you ensure that the benefits or protection it provides are optimal and in accordance with your needs?
Therefore, when applying for any type of insurance, including education insurance, be sure to understand the entire contents of the given policy. If there is a point that is not understood, do not hesitate to ask the agent or sales insurance.
Half-And-Half's Wishful Thinking Prepares Children's Education to Achieve the Best Future
Education is one of the major determinants in a person's future life. With a high level of education, a person is able to make his life more established. Therefore, so that the life of children in the future can be more guaranteed, do not half-prepare their education funds with the help of insurance.
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