MOM, BEFORE JOIN TO KID INSURANCE YOU HAVE TO KNOW THIS

 Some parents want their children to have a bright and successful future.

But the process to achieve this is not easy.

To get a bright future, of course education is one way to achieve it.

Parents must send their children to the best schools.

However, of course the funds spent on good schools are not small.

Education funds must be prepared as early as possible so that parents do not get dizzy when the child starts school.

From level, kindergarten, elementary school, middle school, high school, to college level

The need for costs is very large.

School fees are more expensive, because the increase is higher than the Provincial Minimum Wage, which is only around 8-9 percent each year.

Setting up education funds you can do in various ways, such as opening education savings, education insurance, term savings, deposits, or it can also be through investments.

But people are more likely to raise education funds through education savings or education insurance.

Indonesian people are familiar with education savings.

Similar to term savings.

It's just a special use for children's education.

While education insurance is still rarely known, because this product is different from education savings.

Insurance Education Not Savings

When buying insurance products, you will be charged a fixed premium every month.

Similar savings plan in a certain period of time, where must deposit money every month.

But make no mistake, insurance education is not education savings.

Generally, this education insurance is a unit link insurance that includes investment in it.

How it works, your collected funds will be invested by insurance companies into various investment instruments or portfolios that they think are appropriate and profitable.

You can get benefits or benefits from the turnover of these funds.

These benefits are included in the education insurance benefits.

However, you need to know, there must be a risk in investing.

Risk of loss or partial loss, even of your entire insurance fund.

So, understand this well before applying for insurance education.

Reasons for the Importance of Educational Insurance

Even though it saves risk, education insurance can be one alternative for you to prepare children's education costs that can reach hundreds of millions, even billions dollar.

Here are 4 reasons for the importance of education insurance for parents and children:

1. Relieve the burden of education costs

Why is that?

Because the premium you pay each month can be withdrawn when it's due.

Once a child wants to go to high school or go to college, you don't have to worry anymore about the money.

Keep in mind, an education insurance product is declared to be due when it is in accordance with the tenor or time period specified at the beginning of the agreement.

If on the way, you are sick or die, this education insurance can be disbursed according to the provisions of the applicable policy.

Thus, your child's future is guaranteed.

You can feel calmer and can send your children to school as high as possible without being hindered by expensive tuition fees.

2. Help parents live frugally

Are you a wasteful parent?

It turns out that education insurance can guide you in living frugally.

Because, you are required to pay a premium every month to get the benefits of education insurance.

Of course, the amount of the premium is adjusted to your financial ability when you apply for insurance.

You as a parent must set aside a minimum of 10-20 percent of income for these education costs.

If you want to walk disciplined, not premium arrears, you must reduce your consumer lifestyle and control your appetite to avoid waste.

3. As a place for investment

Education insurance is a combination of savings with term life insurance. Funds will be a guarantee for children's education. It's the same if you invest money in an education insurance product. Of course there are benefits or returns on your investment. Instead of spending money on unnecessary expenses, it's better to be diverted to child education insurance.

However, no one can guarantee whether this investment will run successfully. It could be that the insurance company chose the wrong investment instrument to rotate customer funds, so that instead of the benefits you get, but even a big loss. These conditions will definitely have an impact on the funds that you have invested. Therefore, make sure to choose the right product and education insurance company.

4. Offering other benefits beyond education

Some companies usually provide additional products outside of insurance education. For example, additional premiums for health insurance so that it can cover the health costs of children when they fall sick, accident, or die. Promised also received compensation costs in large quantities.

This benefit can be obtained if you take additional products. Ready Funds, Current Education Education is very important for the children's future. Do not sacrifice your children's education because of limited funds. For that, start preparing from now on so as not to overburden your finances in the future. If funds are available, the child's education goes well to attend college.