A Complete Guide on Education Insurance
Nowadays, there are a lot of advertisements on insurances posted by many agencies. Some of the offers may intrigue you, especially one that seems to favor your children’s need regarding their education. If you are a parent and have been interested in looking more into education insurance, here is a complete guide on what it entails.
Get to Know What It Is
To choose the right insurance for your kids, you must understand what having insurance in education means. If we are looking from the offer, insurance agencies out forward a service that will be guaranteeing an education fund for your child’s future as well as functioning as a health insurance for them. To do that, every month you have to pay a certain amount of premium according to your choice of plan.
Types of Insurances Available
Even though they have the same purposes, there are two kinds of protection ready for you to choose. The first one is called Endowment Insurance, which is an education insurance that has been available since forever. With this, you have to pay a considerably small amount every month. The fund that you will receive as a benefit is also a fixed number, so you know exactly how much you are going to get.
The other type will be a Unitlink Insurance. You will get the same advantages as if you are having an endowment plan, but with additional benefit. What differentiates them is that Unitlink also involved an investment program in their package. It means that a portion of your premium will be put into an investment account. But, because the premise of the insurance, there is no guarantee how much money you will gain or even loses from it.
How to Choose the Right Insurance
You can start choosing your education insurance by determine how much funding you are going to need and the type of insurance you want. Choose one that doesn’t have a big acquisition fee. If there is one, you need to pick that will guarantee your kids’ education until college, in case something happen to you, so your kids’ future could still be insured. You must make sure that the insurance that you are signing in is putting your name as the one that is responsible to pay, and not your child.
The next step that you can do is choosing the extra benefits of insurance (rider) that suits your need. Also, don’t forget to plan about how long that you have to pay for the permit and when would you like to liquefy your fund. The last one is to determine whether or not the right education insurance plan that you pick fits with the length of your kids’ education.
After the explanation above, you now understand insurance concerning education. You can start to register into one and deciding your kids’ future that way, though it is most possibly not the right choice. You better be investing your kids’ future into your savings account. With saving account, you will have complete control over your money rather than giving it to the bank.