In addition to saving money in the bank for the purpose of funding the education of children, parents can also consider buying insurance education. When compared with bank savings, insurance education clearly more advantageous because the interest itself is larger than the regular savings account, which is an average of about 15% per year.
Are you interested in buying this insurance product to guarantee the cost of education for your baby? If so, it’s good to follow the way of choosing insurance education below:
Know your insurance company
In Indonesia, there are some insurance companies that provide insurance product education. Call it the Prudential, Allianz, Insurance Bumi Putera, Manulife, and so forth. Before you decide to choose one of these companies, you are strongly advised to get to know the insurance company first so you know its quality. To obtain information about the company, visit the official website and ask directly to the customer service provided.
Adjust premium to the cost of educating a child in the future
Although the insurance company gives full freedom to you in determining the amount of premium to be paid, you are strongly advised not to choose the insurance premium in small amounts. Why? Because the rate of inflation in Indonesia in recent years by 12% to 15% with the increase of tuition fees by 20% to 25% annually. Therefore, if your premium is low, it is possible that you can not meet the cost of educating a child in the future. Ideally insurance premiums per month ranged from Rp 500,000 to Rp. 800,000.
Choose a flexible policy
Some insurance companies do not allow the insured to take out an insurance policy if it has not reached a certain period. It is legitimate, but it is better to choose an insurance company that allows you to choose the policy that is flexible. This means that the insurance policy you can take whenever appropriate educational needs of children.
Checks additional facilities
Additional amenities education insurance usually is in the form of health insurance compensation costs of medical treatment in hospital. You may consider this facility if you also need to guarantee children’s health costs. But, make sure that these additional facilities do not cut too much the number of insurance policies in order to fund a child’s education education remains insufficient.