Benefits of insurance education for your child

There are many costs that parents need to consider raising a child, from the cost of childbirth to raising a child to taking out education insurance to cover college costs. Education insurance is one of the best alternatives you need to consider as you are encouraged to start saving for your child's education. Follow this article to find out everything you need to know about education insurance.

How Can Education Insurance Help?

The cost of education depends on the type of university you choose, either IPTA or IPTS. In general, the cost of education in private universities is much more expensive with tens of thousands to hundreds of thousands of dollars than the cost of education in public universities.

One of the most common ways practiced by parents is to encourage their children to take out PTPTN loans to cover tuition fees. This means that their child will have to repay the loan debt after graduation.

In addition to encouraging children to take out loans, you as a parent can also take the first step to finance your child's education by taking out education insurance. There are two types of education plans: endowment policies and investment policies. Here are the differences between an endowment policy and an investment policy:

6 Reasons Why You Should Consider Education Insurance

You may already have other insurance plans such as health insurance, personal accident insurance, and so on. In addition to these insurances, education insurance is also one type of insurance that we recommend.

This is because it can be an initial preparation to help you save so that your child can continue their studies one day. Here are six advantages of education insurance that you need to know:

Opportunity to earn bonuses and add value

By taking out education insurance, you have the opportunity to get bonus payments and add value from your insurance company. These bonuses and added value will be added to your child's Education Fund during the period of your policy.

The amount offered varies according to your company and your insurance plan. For example, there are insurance companies that offer bonuses of up to 15 times the premium to be given to your child in preparation for college through the products offered.

Start saving education funds for children

Most of these plans can be activated once your child is 14 days old. If you consistently pay premiums to insurance companies, your child will be able to use funds from education insurance to cover higher education.

Can Get Tax Exemption

In addition, the education insurance you take out for your child can also be used to claim tax exemptions of up to RM3, 000 per year. In this way, you will be subject to lower income tax and at the same time be able to provide for your child's education. Win-win!

Premium Paying Rider

This protection will help cover the payment of insurance premiums if one or both parents die or have a comprehensive disability.

In other words, premium payments for your child's education insurance policy will continue if both parents are no longer able to work. This will allow your child to use the funds from the education insurance when they want to continue their studies.

Access to withdraw funds if needed

If you are facing financial difficulties or facing an urgent situation and need money during an emergency, you can withdraw money from this savings fund. You can take the quantity as per your requirement without any production cost. However, if possible, avoid using funds from these savings to prevent your child from experiencing a lack of money to continue his studies.

Additional Help

Your education insurance plan will also offer additional benefits such as helping children prepare for university or college. However, this depends on your insurance company and you are advised to check it out for more information.

Choose the best education insurance to make a bright future

Before you choose to take out education insurance, you need to set clear goals before adding your monthly commitments. In addition, also determine the education insurance policy that suits your needs by looking at the duration and allocation of payments.

Most insurance policies are flexible and offer additional benefits that can increase your child's savings. If you are looking for the best education insurance in Malaysia for your child, take a look at the plans below that you can consider:

SSPN Plus

Aspire (Etiqa)

Prusaver Kid

A-Eduachieve 2 (AIA)

ASB 3 Learn

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