EXPENSIVE EDUCATION COSTS? TAKE CARE WITH EDUCATION INSURANCE!

Expensive Tuition Fees? Get around with Education Insurance!! Education is one of the fundamental things that needs to be fulfilled as an effort to improve the quality and level of welfare of one's life. The level of education also has an influence on a person's financial behavior. Therefore, it is important for us to prepare an education plan from an early age in order to welcome a better future.

This educational planning can be started by young family couples in preparation for their children's education. When starting to plan for education, one of the main things to be concerned about is the cost of education. To accommodate this, the first thing that can be done is to allocate funds for education. One of the financial products that can be utilized to meet these needs is education insurance.

Education insurance is different from education savings. The basic thing that differentiates is the scheme of the product. Education savings is a term savings product, while education insurance is basically a combination of savings products and term life insurance.

Education insurance is useful for providing protection if one day there is a risk of death or other unwanted risks befalling the breadwinner, in this case generally the parents. With education insurance, if these things happen, a child can still continue their education without worrying about the problem of education costs because they have been met from the benefits of education insurance.

In general, currently in Indonesia there are 2 (two) types of education insurance, namely dual-purpose insurance and unit-linked insurance.

1. Endowment Education Insurance

This educational insurance is a product of a combination of life insurance protection and money market instruments. The insurance will guarantee the child's education costs later if the parents are no longer able to make a living due to death or total disability so they cannot work as before. The amount of the benefit is in accordance with the contract agreed between the customer and the insurance company.

2. Unit Link Education Insurance

This education insurance is a combination of life insurance and investment products. Premiums paid each month are not only used to protect the future of children's education, but will also be managed in investment products. The profit from the investment will be shared along with the child's school stages. What needs more attention is the investment features attached to this product, where every investment has accompanying risks. Even though there is an opportunity to get high returns or investment returns, behind that there is also a high risk.

In choosing between the 2 (two) types of education insurance products above, first understand the benefits and risks and adjust them to your personal risk profile and your needs. Thus you can have the appropriate education insurance product.

To access this product, you can contact the nearest education insurance company/agent and make sure the education insurance agent is an agent for a life insurance company that has an agency certificate from the Indonesian Life Insurance Association (AAJI) and the selected insurance company is registered and licensed at OJK.