ScienceLovers - Are you preparing education insurance for children? Here are five ways to choose the right one. Education is one of the gat...
Education is one of the gates for children to achieve a bright future. In order for children's education to be guaranteed, parents need to prepare costs. There are many ways to prepare for these costs, for example through education insurance.
In addition to ensuring the availability of costs, children's education insurance also helps parents allocate funds on a regular basis. That is, no matter how many needs, you will be motivated to pay premiums that are considered as obligations.
However, you must be careful in choosing insurance for children's education. Start checking from premiums to benefits received. For reference, here are some ways to choose the best education insurance.
Choose Profitable and Flexible Products
Insurance funds for education generally cannot be withdrawn at any time like ordinary savings.
You have to wait a few months or years if you want to use it. Therefore, choose insurance that is flexible and provides many benefits.
One of the benefits that many people expect is that they can claim insurance at any time. However, you must calculate accurately so that the cost of education is still met even though it is claimed early.
In addition to claims, choose insurance that offers convenience in increasing the investment value gradually. For example, if you want to send your child to school, then choose a policy that provides dollars.
Check the Benefits You Get
In addition to getting the benefits of education, of course you want additional benefits. Thus, additional benefits can be used as one of the criteria for selecting insurance.
For example, you are offered education insurance at a premium of $1,744 per year until your child enters junior high school. In addition to receiving benefits in the form of guaranteed tuition fees, ask if this product also provides life protection. You can also ask for additional benefits in the form of increasing the value of your investment.
Compare Multiple Insurance
More than 150 insurance companies are established in Indonesia. Each of these companies has advantages and disadvantages that you should pay attention to. Parameters to compare these companies can be the value of assets, liabilities, and quality of employees.
You can also compare companies by their past track record of service. Track records can be obtained from previous insurance service users, reviews on the internet, or by understanding the products offered.
How to know the quality of the company can also be done by asking certain cases. From the way the company explains, you can know the quality of its products and services.
Set aside Monthly Income
Before learning how to set aside your monthly income for insurance, it's a good idea to know how much education will cost you in the next few years. According to research, the cost of education will increase by 15-20 percent every year.
For example, currently the total cost of pursuing a bachelor's degree is $20.926. That means, 10 years from now, the cost could reach $41,852.
After knowing the estimated education fund, you can adjust the amount of insurance. If the insurance amount has been adjusted, the company will issue a premium that must be deposited.
When the premium starts to run, you have to set a priority scale. That is, every income earned per month must be divided according to need. Special insurance funds, provide about 15-20 percent of your income.
In the next step, you must create a separate account specifically for saving insurance premiums. The goal is that the money is not used for other purposes, let alone daily needs.
Another strategy to make premium money available, you can create an auto debit account. So, the insurance company automatically withdraws the money on the due date.
Then, what if your income is not enough to pay the premium for the best children's education insurance? One solution, you can find additional income by running a side job.
You don't have to choose a job that takes a lot of energy and time to earn extra income. Start with simple things, for example selling snacks, packaged drinks, clothes, and shoes. If you have writing skills, you can try to become a freelance writer whose salary is relatively high.
Involve Children in Preparation
The preparatory stage begins with making a child's education plan. The plan consists of the level of education, the city where you want to go to school, to the details of the names of the schools you are going to. In this case, you can involve the child by asking his favorite school.
After these steps are taken, make a commitment with your child to be disciplined in paying premiums. When the enthusiasm for paying premiums begins to decline, remember your goals for taking education insurance.
So that the child can participate, guide him to set aside some of his pocket money as savings. There is no need to open a savings account in a bank to teach children to save; You can use a piggy bank. So, children can still save with change or coins.
While guiding the child to save, tell him that the money will be used to increase the cost of education in the future.
Education insurance is an important financial plan to be implemented in the era of Industrial Revolution 4.0. The reason is, the cost of education must increase from year to year, while you may not be able to meet future needs.
Come on, prepare children's education funds from now on!
