Children's education is very important for parents. You, as a parent, have of course heard about education insurance and educational savings. Both are recommended for those of you who want their children's future guaranteed. Educational savings and education insurance has the same goal of ensuring the education of your child from elementary school to college, but both have different mechanisms. You can use the different mechanisms to make choices. Education insurance or educational savings?
Education insurance is insurance that uses a unit link system (joining investment). The funds obtained from this insurance are uncertain, because it depends on the situation in the investment market. Investment returns obtained are uncertain, because they may be higher than expected or may be lower. If you want to get insurance while investing, education insurance is the right choice, because you can get double benefits, namely: investment returns and insurance claims.
If you as a parent die or experience permanent disability, your child's education is guaranteed. Your child will also get insurance costs plus investment funds. Educational investment funds will be disbursed according to the child's school period when entering elementary, middle school, high school, and college. But don't forget, you have to deposit premiums every month. If not, the insurance policy can be cancelled.
Unlike education insurance, funds collected from educational savings can be ascertained. Because educational savings do not adhere to an investment system but a savings system. The funds saved will continue to bloom. But there are things that you must pay attention to, especially the threat of inflation that can erode the value of savings. You must continue to see the trend in inflation values every year. Depositing funds is also simpler because it can be debited directly from your own savings. So, you don't need to worry if you forget to deposit at any time.
Educational savings are also equipped with insurance, but the insurance is only a supplement. Education insurance remains superior to claims. If you die or experience permanent disability, your child will only be given savings, unlike education insurance which will also provide compensation and coverage costs.
Educational savings and education insurance has its own advantages and disadvantages. Which one is the best answer will depend on your needs and policies as a parent. If you want to get insurance while investing, education insurance is the right thing for you. If you are a parent who wants to focus on saving without investment, educational savings is a suitable choice.