3 Reasons Why It's Important for Parents to Have Children's Education Insurance - Banjar Post

3 Reasons Why It's Important for Parents to Have Children's Education Insurance


In anticipation of rising education costs, many parents are starting to consider getting Education Insurance in an effort to provide a planned and more beautiful future for their children, regardless of their financial level. 
This is the basic reason why they are so enthusiastic about getting this insurance product. The main principle is that they hand over funds to a third party, namely the insurance company. This party is in charge of securing the funds, then giving them to the children when they reach a certain age or grade.

 Three Advantages of Education Insurance These are at least three reasons why you need education insurance for your children.
 1. Guarantee that education funds are more allocated At this point, you may ask: What is the difference between preparing children's education funds with education insurance and saving money conventionally in the bank? Why should they choose this particular product? The first thing you need to remember about Insurance is that it is different from saving money in the bank. When taking out education insurance, the insurance company will be responsible for managing your child's education funds, if something happens to you. This is different if you only save for your child's education at a bank where the funds only match the amount you have saved so far. 

2. Avoid the Economic "Roller Coaster." Another reason why it is important to keep your money safe in the hands of professional insurance is that the economic system in every country, including Indonesia, fluctuates from time to time. This is what creates the risk of a decline in the value of the currency caused by inflation. Moreover, the increase in education costs in Indonesia is quite high. Based on data from the Central Statistics Agency (BPS), inflation arising from the education sector in Indonesia reached 3.81% as of February 2020. In fact, the average increase in school and university entrance fees in the country is around 10%-15% per year. Imagine if your child was 7 years old in 2020, where the cost of admission to a private university at that time reached IDR 15 million per year. Just calculate how much it will cost if your child is 18 years old or 11 years from now? Therefore, it will of course be different when you start buying education insurance products. Not only will your money be safe from inflation, but it will also be available for your children's future. 

3. Cannot be withdrawn directly This is also the difference between ordinary savings and education insurance, namely regarding the withdrawal period which cannot be done before reaching the agreed contract time. This way, it's like you have a safer safe, even if the owner doesn't have the key to open it.

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