Child education insurance: definition, types and benefits

If you already have a family, of course, you understand that the survival of your child is one of the main things. All the needs of the child, from basic needs to educational insurance, must be adequately met.

Until now, there have been many insurance products for children's education in Indonesia. This is certainly in line with the large number of people who need child education insurance so that their children get the best quality education.

Through this article, my analysis will provide information on all matters related to child education insurance ranging from definitions, types, to the benefits of such insurance. Check out the article from my analyst below!

Definition Of Child Education Insurance

In plain language, educational insurance is a phrase consisting of the words "insurance" and "education". The definition of insurance itself means an agreement between two parties in the form of a guarantee for something, while education is an area that supports the cognitive development of a person.

So, based on that definition, education insurance is a service that offers and guarantees a child's education in the future. Most of this kind of insurance offers parents to provide protection against the needs of their child, because it is assumed that the cost of education is always increasing every year.

Types Of Education Insurance

In general, there are two types of insurance known by the people in Indonesia, namely unit link insurance and double type insurance. However, there are actually similar insurance products from sharia institutions.

Here are the types of education insurance you need to know!

Double Manifold Insurance

Endowment insurance is a type of insurance that combines education and savings systems. So, premiums paid by parents can be used for a certain period of time in accordance with the agreement.

If the time of withdrawal from this type of insurance has come, then the amount of money that will be received is quite high.

Unit Link Insurance

Unit link type insurance is a type of protection insurance that has a similar way of working with investments. That is, there are advantages that can be obtained simultaneously with the period of payment of educational expenses.

However, back to the nature of investments in general, there is no guarantee that you will continue to benefit from the insurance you take out.

Sharia Insurance

Basically, Sharia insurance products in terms of education are the same as other types. However, what distinguishes Sharia insurance from other types is that all transactions and agreements that occur between insurance institutions and customers are carried out according to the principles of Islamic Sharia.

Benefits Of Education Insurance

Of course, using education insurance for children has many benefits. Here are the benefits of child education insurance that fellow analysts can feel if you use it!

Securing More Education Funding

Perhaps analysts are wondering what the difference is between setting up a children's Education Fund with education insurance and keeping money in the bank. What analyst partners need to remember is that insurance is different from keeping money in a bank.

When the analyst partner has decided to participate in this type of insurance, the insurance company will be responsible for managing your child's Education Fund in case something undesirable happens. This is what makes education insurance different from saving money in a bank that only matches the amount you save.

Avoiding The" Aki-Aki " Economy

Another reason why it's important to protect your money with reliable insurance is that economic conditions and systems in every country, including Indonesia, fluctuate over time. This is one of the risks of currency depreciation due to inflation.

In addition, the cost of education in Indonesia is quite high and always increases every year. Based on data from the Central Statistics Agency (BPS), inflation originating from the education sector in Indonesia reached 3.81% in February 2020. In fact, the average increase in tuition fees for schools and universities in the country ranges from 10% -15% per year.

Therefore, it will certainly be different when Analyst partners start using education insurance for your child's educational needs. The analyst's money will not only be safe from inflation, but will also be available for your child's future.

Cannot Be Withdrawn Directly

Another point regarding the child's educational benefit is regarding the withdrawal or withdrawal period that cannot be made before reaching the contractual time agreed by both parties. This way, you will have safe money that is certainly safer, even the owner cannot open it at will.

That is the definition, types, and benefits of child education insurance. After seeing this article, are you interested in using this insurance?

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