6 Benefits of Child Education Insurance

In this sophisticated era, where the brain is more important than the muscles, education is an obligation. People no longer rely on muscles to work and earn income, but now everything relies on the ability of the brain. Just look at the presence of ATM technology or Automated Teller Machines which undermine some of the functions of bank employees. Or the presence of factory machines that replace the work of workers. In addition to being cheaper, the machine has a smaller risk of making mistakes while working, so it is more efficient.

For this reason, the problem of education is a major problem for parents. They work hard every day and are willing to live frugally just so that their children's needs can be properly met and so that their children can receive the best education up to the highest level. The goal, of course, is to make the lives of their children better in the future.

For this reason, the problem of education is a major problem for parents. They work hard every day and are willing to live frugally just so that their children's needs can be properly met and so that their children can receive the best education up to the highest level. The goal, of course, is to make the lives of their children better in the future.

Education Insurance

This is a potential line of business for insurance companies to create education insurance products that can guarantee children's education costs until they complete their education. The way it works is that insurance company customers are required to pay an amount of premium per month or per year for several years according to the agreement at the beginning. Later customers can disburse children's education funds when they are about to enter a certain level of education, the amount of which has also been determined according to the amount of insurance paid.

Not only that, if at any time the parent or the insured dies or has a disability which makes them no longer productive while the premium has not been paid, the children can still receive disbursement of insurance funds so that their education is not neglected.

Types of Education Insurance

When registering education insurance for children, there will be two types of insurance options, namely:

1. Endowment or endowment education insurance

Is a type of education insurance that is purely without investment so that the amount of education funds received by the customer is fixed and certain according to the agreement at the beginning. This is a type of education insurance that is widely used in the early days of using education insurance. Because without investment, of course, the amount of education funds received is smaller than unitlink type education insurance.

2. Unitlink education insurance

This type of education insurance besides protecting and guaranteeing education funds also has investment benefits that can be received by customers. In addition to being used for insurance costs, the insurance premium paid by the customer is also used for investment so that it allows the customer to get more funds if the investment is profitable. But of course the name of investment is not always profitable, there are risk factors when the investment suffers a loss that must be borne by the customer.

Benefits of Education Insurance

1. Protecting parents (as life insurance for parents)

The existence of education insurance protects parents as the person in charge of family finances. If later they become seriously ill, disabled, or worst of all, they die, so they cannot pay for their child's education, the insurance company will continue to disburse funds for the child's education according to the agreement at the beginning. This is certainly a relief for parents who are worried about the continuation of their child's education.

2. Ensure the certainty of children's education costs

Parents taking education insurance will guarantee the cost of their children's education until they complete their education so that parents no longer have to worry about the cost of their child's education. Insurance can be disbursed per level of education so parents don't need to be confused anymore about finding funds when their children are going to school. (Also read: 13 benefits of college for the future)

3. Gives a sense of calm

The purpose of all insurance that people do is to provide a sense of calm about the worst possibilities that will occur. If something unexpected happens they will not be too troubled and worried about the impact on life. Likewise with education insurance which makes its customers feel calm about the continuation of their children's education even if something unexpected happens later.

4. Can manage finances better

Taking education insurance helps us organize and allocate funds appropriately so that they don't just run out. With a monthly or annual payment system, customers will regularly set aside funds for insurance purposes so that they are not used for various other needs that have not become a priority.

5. As savings for children's education

Although it is different from education savings, education insurance can be seen as savings for the future education of children which can be paid in installments starting from when the child is still small. So that when the child is big, parents are not too bothered about the cost of their child's education.

4. Can manage finances better

Taking education insurance helps us organize and allocate funds appropriately so that they don't just run out. With a monthly or annual payment system, customers will regularly set aside funds for insurance purposes so that they are not used for various other needs that have not become a priority. (Also read: the benefits of managing money well)

5. As savings for children's education

Although it is different from education savings, education insurance can be seen as savings for the future education of children which can be paid in installments starting from when the child is still small. So that when the child is big, parents are not too bothered about the cost of their child's education.

Isn't it extraordinary the benefits we can get from education insurance? Even so, to get maximum results, you must really study the education insurance that will be taken, starting from how much the premium must be paid, the benefits that will be obtained, what risks will be faced, to the profile of the insurance company whether it is trusted or not. With careful preparation and choosing the right type of insurance you will get the maximum benefit.