Can Be Beneficial in the Long Run, Here Are the Reasons Why Children's Education Insurance is Important to Have

Illustration of education (Doc. Ist

Printable.biz.id - Most parents naturally want the best for their children, including in terms of education. That's why many parents sign up for children's education insurance. Moreover, this type of insurance can be beneficial in the long term.

On the other hand, the cost of children's education continues to rise every year. However, parents can take preventive measures to ensure that their children's education is well-funded. The most popular way is to enroll in education insurance.

Reasons Why Children's Education Insurance is Important

When enrolling in education insurance, parents must pay money, often called premiums, to a third party, which is the insurance company. Once the child reaches the appropriate age for education, the money can be claimed back. Here are the advantages of children's education insurance:

1. Better Allocation of Education Funds

Some people often ask what the difference is between saving money in a bank and enrolling in insurance. Of course, the two are quite different, especially since the money in the bank will not increase. In fact, in the long run, the balance could decrease.

This is different from education insurance, which has better allocation. Even the insurance company is responsible for managing the education funds in case something happens to the parents or the child.

2. Avoiding Economic "Roller Coasters"

Basically, the economy in every country, including Indonesia, fluctuates over time. This can lead to various risks, including the depreciation of the currency due to inflation.

If the value of the currency continues to fall and the cost of education keeps rising, it will affect the child's future. For example, this year the cost of entering university A is around IDR 7 million. It is possible that five years later, the cost of entering university A could reach IDR 10 million.

3. Cannot Be Cashed Out Immediately

Unlike bank savings, which can be withdrawn at any time, insurance cannot be withdrawn directly before reaching a certain contract. Usually, the policyholder or parent agrees on the insurance claim time. If the contract is met, the insurance can be claimed.

By enrolling in insurance, you essentially have a safe deposit box that is hard to access. However, your child's education in the future is more secure. You won't have to worry if education costs increase.

These are some reasons why children's education insurance is important to have. With this insurance, you can feel more at ease as education costs continue to rise.