Thursday, February 1, 2018

5 Tips on choosing the best educational Insurance 2018

Dear parents, the Education Fund has always been to make nervous. Because of the large number, drain the pockets and a desire to offer the best for children. How to choose the best education insurance can be a good and reliable?

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I've been in this position.

When a new child was born, I am looking for information to question the fees. Between the shock and do not believe see fantastisnya entry fee school in Jakarta.

According to research, the average increase (inflation) education costs 10-15% per year in Indonesia. With the high increment it, parents need proper planning.

I learned that planning education funding is very important. Planning is important because education fund should be initiated as early as possible so that the mistress is not damning.

One of them choosing insurance education. A type of insurance that is believed to be the parents, with the help of the promotion of insurance agents, could help meet the needs of the Fund for children's school fees.

I never been in this position. Receive an awful lot of insurance offer education.

Almost all insurance companies offer this type of insurance. U name it, from Prudential, Manulife, Allianz up to outer bank BCA, BRI, Danamon and others.

And I'm confused choose which. Because all say, their products are the best.

Choosing The Best Child Education Insurance
From experience, I learned that as a potential policy holder on insurance education, parents have a lot to find information, to hear a second opinion and study the offer carefully, in order to obtain the best products that can meet the needs.

These 5 tips on choosing insurance education:

#1 the amount of funds According the Target costs of education
The purpose of taking insurance education is so when the child enters school, parents have enough savings to pay for tuition.

In order for the funds of insurance education was enough, according to your needs, then parents need to do the following:

First, have the shadow children will go to school where. As with the school will know the intended recipients, parents can calculate how much it costs to enter the school.

Second, find out how the fees increment in the intended school. Because of the important info that older people need is the cost of the school later when the child enters.

Third, calculate how much it costs the school later when the child enters school. This is a matter of simple in excel using the formula of the Future Value.

#2 Understand the risks of Insurance Education
In insurance education, insurance companies will invest the premium payment done parents to specific investment instruments. This instrument is chosen by the parents or assisted by an insurance agent chosen.

The important thing to understand is that every investment instrument options have risks. That means, could have been the target of the funds listed in the insurance education, proposals submitted by the agent and be read by parents, not achieved.

How big are the risks?

The risk depends on the type of the selected instrument. The stock was the most high risk instrument, while the lowest money market.

The important thing is to choose the appropriate instruments with risk appetite or the ability accept risk. If it is not able to accept fluctuations in profits, do not grab the instrument with a high degree of risk. Vice versa.


#3 do not Easily believe the insurance agents
This in no way means I am hostile to insurance agents. I believe with them.

But, the important thing to remember is "trust but verify". This means that all the info submitted is verified wherever possible agent or look for a second opinion.

Now it's the era of openness, transparency, parents can easily find information on the internet for cross-checking.

Why would I suggest to be critical and skeptical to the agent because the agent destination however is the closing of the purchase with payment of the insurance premium. My experience, because want it bigger, then the agents tend to convey facts and information are nice – nice, while the actual risk faced by policyholders are not delivered in stark.

May not all apply to such agents, but based on experience, the vast majority do so. Therefore, it is better always do a cross-check upon the info presented.

#4 how much Money Coverage
Education in insurance, risk-protected is a disaster for the wage earner, i.e. parents, who could not finance the tuition. The existence of insurance education make a continuation school children be guaranteed because there are insurance companies that continue giving a living in case of risk.

How the amount borne by the insurance company in case of the risk?

That number is again reflected in the sum assured. The funds will be paid if the insured in an insurance policy are experiencing a disaster.

The problem, many parents don't notice carefully the amount of sum assured when choosing insurance education. More focus to how the funds can be withdrawn from the insurance when the child enters school.

There are several ways that parents can increase the value of sum assured:

First, take the insurance early on because with age the younger, policyholders can get sum assured is greater with cheaper premiums.

Second, use pure or traditional life insurance or term life. This type of insurance provides money to the highest coverage with the cheapest premiums.

Third, ask the agent to increase the amount of sum assured because in each there is a rider insurance (insurance extra) that specifically increases the value of the sum assured.

#5 not only Insurance Education
If heeded, the insurance features of education consists of two main components, namely investment to finance tuition and insurance to protect children from the risk of disaster-stricken parents.

Both of these components do not have to be purchased through insurance education. Can be done through other means.

First, do your own investment (without passing insurance education). There are many investment choices that could be made, one of which is in mutual funds.

Advantages of investing itself is parents don't have to pay commissions to the insurance company. That is, the money invested can be done directly with myself than through insurance companies.

Second, buy insurance to protect the souls of the parents instead of going on the risk of death. Insurance purchased is pure or traditional insurance that is not insignificant – insignificant investment.

The advantage of this type of pure or traditional insurance is a premium with a generous sum assured is high. Well suited to fund education of school children.

Conclusion
I've experienced just how nervous his time know that the cost of school children is expensive and limited savings money while providing the best want to create a child. From there, I know that the early preparation of funding education is very important.

Although most sought-after education insurance because it believed it could help the elderly cope with the question of money entering school, but parents need to be the critical matter of this insurance. There are many tricks and tips that need to be cared for by parents.

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