Education Insurance Illustration: 3 Coverage Benefits Explained
See an education insurance illustration with 3 coverage benefits, premium payment terms and monthly charges to help your child enjoy better school years.
Every parent wants the best for their child, especially when it comes to education. That is why many parents choose to secure their children's schooling with education insurance. Below is a brief illustration of education insurance that parents should know before they buy a plan, or while they are using one.
Coverage Benefits (Education Insurance Illustration)
Basic Coverage
- Child Education Stage Benefit
The Stage Benefit is paid according to the terms below.
| Insured's Entry Age (Years) | Stage Benefit Paid on the Nearest Policy Anniversary When the Insured Reaches Age | |
| 14 Years | 17 Years | |
| 30 days to 8 | 50% of the Sum Assured | 100% of the Sum Assured |
| 9 to 12 | - | 100% of the Sum Assured |
2. Death Benefit
If the Insured dies during the Coverage Period from illness, accident or other natural causes, the policy pays the Sum Assured or 100% of the basic coverage premiums paid, minus any Stage Benefit already paid, whichever is greater. Coverage then ends.
Death Benefit calculation formula
| SA or (AP - SB), whichever is greater |
Notes
SA: Sum Assured
AP: Accumulated basic coverage premiums paid
SB: Stage Benefit already paid
3. End of Coverage Period Benefit
If the Insured lives to the end of the Coverage Period, 50% of the Sum Assured is paid and coverage ends.
Premium Payment Period (Education Insurance Illustration)
| Insured's Entry Age (Years) |
Premium Payment Period Options |
| 30 days - 2 | 5, 10, 15 years |
| 3 - 7 | 5, 10 years |
| 8 - 12 | 5 years |
Education Insurance Illustration Example
Policyholder: Andre Saputra (35 years old/Male)
Regular Premium: Rp 15,000,000
Sum Assured: Rp 100,000,000
Insurance Charge (Education Insurance Illustration)
= Rate x 100,000,000 = 2.45 x 100,000,000 = Rp 254,000
1,000 1,000
= Rp 254,000 = Rp 21,666 / month
12
Administration Charge (Education Insurance Illustration)
= Rp 27,500 / month
Monthly Charges (Education Insurance Illustration)
Maintenance
| Policy Year | Percentage of Regular Insurance Premium |
| 1 - 5 | 5% |
| 6 - 10 | 3% |
Example:
January 2017
Regular Insurance Premium = Rp 15,000,000
5% x 15,000,000 = 750,000 = Rp 62,500 / month*
12
*) for the first 5 years
| Type of Charge | Monthly Charge |
| Insurance | Rp 21,666 |
| Administration | Rp 27,500 |
| Maintenance | Rp 62,500 |
| Total Charges for the Month | Rp 111,666 |
That is the education insurance illustration you should know before deciding to use education insurance to secure your child's schooling.
Read also: What Programs Does Sharia Education Insurance Offer?
