5 Benefits of Education Insurance for Your Child's Future
Education insurance benefits include steady tuition savings, an investment element, and protection if a parent can't work. Learn all 5 benefits.
Every parent wants the best education for their children. Most hope their children will go further in school than they did. Unfortunately, the cost of education keeps rising over time, and parents' incomes do not rise along with it. While your child is in elementary school (SD) or junior high (SMP), tuition may not feel too expensive. Once your child reaches senior high (SMA) or university, the cost can feel very high and become a real burden. If you want your child to reach a high level of education, you can take out education insurance. Here are the benefits of education insurance you can get:
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Helps You Prepare Education Funds
With an education insurance policy for your child, you get help in preparing the funds for their schooling. Paying a premium every month makes it easier to build up education funds than paying one large lump sum all at once.
Works as an Investment
One benefit of education insurance is that you can treat it as an investment. The insurance company that covers you manages your premiums as an investment. Later, you receive a sum of money when you make a claim. The amount you receive follows the agreement written in your insurance policy.
Protects Your Child's Education
You may be earning a good living now. But can you guarantee that you will always be healthy and able to work? If you, as the head of the household, can no longer earn an income, your children's education will still be secure. You can withdraw the education insurance funds you have been paying into. Without insurance, your children's education would be at risk if you could no longer work, because you would have no funds left for their schooling.
Gives Your Child a Path to Higher Education
One benefit of education insurance is that it helps your child reach a higher level of education. Most of the insurance funds go toward easing the cost of senior high school and university. With education costs rising, you may not be able to afford to send your children all the way to university. When your child is ready to enroll at a university, you can file a claim with the insurance company.
Protects Against Risk
Premium payments stop if the insured child dies or becomes seriously ill. When that happens, you stop paying premiums and receive a compensation payout. The policy also covers you as the policyholder. If you face a risk event, your family receives compensation from the insurer according to the agreement written in the policy. Your family can use that payout for your child's education, since you, as the breadwinner, can no longer work.
If you want to become an education insurance customer, you can sign up with Panin Dai-ichi Life, an Indonesian life insurer. Its Kids Edu Plan education insurance product is designed to prepare funds for your child's senior high school and university years. Even as education costs rise, the premium you pay stays the same every year. The benefits of education insurance are even more noticeable when you are a Panin Dai-ichi Life customer.
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