JAKARTA - Having insurance for children's education is very important to prepare for the future of the baby early. This is because income can be stopped at any time because of something unwanted, while the cost of children's education is always increasing every year.
Summarized from various sources, Monday, March 15, the average increase (inflation) in the cost of education is 10-15 percent per year in Indonesia. With this high increase, parents need proper planning.
Then, how to choose the best and most reliable education insurance?
Here are tips for choosing education insurance:1. Create a child's education plan
Before looking at offers from insurance companies, you need to make a plan for children's education. This plan is very important and is a guide for choosing the right education insurance. Without a clear education plan, you will be confused about choosing an insurance product.
Have you thought about how high your child's education will be? The education plan contains the level of education of the child, from primary, secondary, to advanced education. Do you know where your child will go to school?
The education plan needs to be as detailed as possible so that it includes the names of the schools and the future years of school entry. This is closely related to the cost of children's education.
2. Determine the amount of funds according to the education target
Then, you will need to research current tuition costs to get an estimate of the future costs of tuition. After pocketing several names of schools at each level of education, find out the details of the costs incurred by parents from initial entry to graduation.
By knowing the estimated future costs of education, you can determine the right amount of funds according to the planned education targets.
After that, you can continue to choose the right insurance to cover the child's education. It is also recommended that before buying these products, you consult with an insurance agent.
2. Get to know the company and compare the products
Currently there are many insurance companies that have the best insurance products for children's education. To choose a good insurance company, you need to pay attention to the company's financial strength, namely assets and liabilities and the quality of the workforce. Assets and liabilities can be seen from the balance sheet which is transparently submitted to the public.
One thing that seems trivial but important is knowing the track record and all information related to the insurance company whose products you are going to buy. You can extract this information from various sources, such as the internet, print media to people who have used their services.
Then, another thing that can be used as a reference is the number of awards received. The more the number of awards, especially from well-known organizations or bodies, the more credible the insurance company will be.
3. Choose insurance according to budget
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Before you invest your income into an insurance product, you need to identify your financial condition first. You should measure how much money you can comfortably set aside and what financial risks you will face when buying this insurance product.
Start managing your finances or income so that you can fulfill your child's future education planning. Measure your financial capacity and choose a premium that suits your financial condition
4. Choose a flexible product
Insurance programs are not like saving in a bank, which you can withdraw at any time according to your needs and desires. Education insurance is a type of long-term insurance that can be taken after the child reaches a certain age and is ready to enter school for a higher level.
For that, you should choose a flexible and profitable policy, which can be claimed at any time to meet the children's educational needs. Make sure you do the calculations accurately so that there is no shortage of tuition fees after making a claim.
Learn all the information you get both from insurance agents and from other customers who have joined the education insurance program. Re-open the education plan and estimate the child's future education costs. Adjust the education plan with the education insurance program offered.
There are many insurance companies that offer the best products with various advantages behind them. For that, choose a flexible education insurance product. The point is that which can provide convenience in withdrawing funds, and the premium price per month is cheap.
5. Check the additional benefits of the insurance product offered
Who doesn't want an extra 'bonus' for everything? Surely everyone wants it, right? In terms of searching for child education insurance products, you should also check the additional facilities or advantages offered by each insurance company.
For example, does the product also provide life or health protection, etc.?
Although there are additional perks offered, make sure that your top priority is children's education. This additional facility should not cut the child's education investment too much so that future children's school fees are guaranteed.
Here are some children's education insurance products that can be used as references:1. PRUlink Edu Protection
PRUlink Edu Protection is a Prudential education insurance program. This program provides financial compensation every month when bad risks occur. Investment funds in this program continue to grow, and premium payments are continued in the event of a bad risk.
Every month PRUlink Edu Protection pays a minimum fee of IDR 500,000 / month, as well as the age of entry for the child from 1 day to 15 years of age.
The protection period for children if the parents experience something unwanted, for example, dies before the age of 99 years, or if the parents have an accident causing disability before the age of 70 years and the child is still 6 years old will get a maximum monthly benefit of IDR 30 million / policy, age protection of children up to 18 or 25 years of age, as well as an increase in monthly benefits of 15 percent per 3 years.
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2. PRUlink Syariah Edu Protection
PRUlink Syariah Edu Protection is also a Prudential education insurance program, with a minimum premium of IDR 500,000 / month, the age of the insured child who is registered from the age of 1 day to 15 years. The protection period for this program is until the parent dies before the age of 99 years, or if the parent has an accident until he is completely disabled before the age of 70, and the insured child is 6 years old.
3. Axa Smart Kidz
The child insurance program from Axa has a child coverage period of 25 years, with a minimum monthly premium paid of IDR 300,000 / month. The age of entry for the children who are covered is from 17 years to 59 years.
The insurance program has three benefits, namely 100 percent of the sum insured for death and additional benefits, namely the return of the basic premium and the top-up premium paid, if the parents have an accident until they are totally disabled.
Second, the insured child will get 100 percent of the sum insured for the child.
Finally, the child will get 100 percent of the sum insured by the parents who died with the benefit of the investment funds that have been formed
4. Manulife Education Protector (MEP)MEP is a child insurance program from PT Asuransi Jiwa Manulife Indonesia (AJMI), which has a minimum policyholder age requirement of 18 years, the policy coverage period until the insured's age is 70 years or until the end of the Policy agreement.
The payment period can be selected by the customer for 5 or 10 years, the premium payment period is 45 calendar days from the due date of the basic premium payment, which the policy remains valid even if the premium has not been paid in full, and the value of the policy that is paid in installments comes from investment allocations and periodic top ups .
5. BCA AIA education insuranceBCA Bank issued a policy called Maximum Education Protection (EduPlan). This product is the result of cooperation with AIA, an insurance company from Hong Kong.
EduPlan is a dual-purpose insurance product that can help parents prepare for their children's education funding needs. Premium payments can be made 3, 10, up to 15 years. The guaranteed education benefit is 200 percent of the sum insured when the child is 18 to 21 years old.
Apart from that, the advantage is that you have the opportunity to get an annual bonus and a bonus at the end of the policy.
6. BRI education insuranceBRI education insurance collaborates with Sequis, which is ready to guarantee education funds and life safety. The insured only needs to pay the premium for 8 years and can enjoy insurance for up to 18 years.
If the insured experiences death and accident, he will get money amounting to 150 percent of the sum insured. Meanwhile, the education fund obtained is 150 percent of the sum insured.
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