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Choosing the right insurance for your child is a wise step for every parent to prepare for their child’s future. In this article, we will try to share the trinkets of the insurance world, which can be a reference before you decide to use insurance products for your children later.
Every parent who is responsible, of course, thinks to always give the best for the future of their children. Some of the parents have their own way of making children happy, either by raising money by saving money, buying valuables for savings, or in other ways basically to help their children in the future.
Most people choose to use insurance to prepare their children for the future. The question now is if you want to use insurance as a guarantee for the future of your child, how do you choose good insurance for children?
Of course, such a question will be the basis for everyone who wants to use insurance as a guarantee for their children. There are various kinds of child insurance products that now exist, among the insurance products are education insurance and health insurance. Which of the two types of insurance is more appropriate for you to prioritize your child? Of course, insurance will be able to answer and meet all the needs of our children.
When choosing insurance that is really needed for children, there are several things and aspects that must be considered before you decide to use this insurance service. Among these aspects you need to know include:
Top Priorities #
Determining the top priority or reason for choosing an insurance product is the most important thing. Is it for family financial security or financial protection, or is it intended for other things such as funds for education, as a health fund, or long-term savings? As a parent, you should think about everything in advance, so that you don’t get overwhelmed in handling it.
Owned Abilities #
To decide to use insurance services, of course, it must be adjusted to your current abilities and conditions. It is intended that you prepare yourself carefully both in terms of funding and also in terms of your readiness. if you decide to use the services of an insurance product or open a policy for your family’s financial protection, then the first thing you can do is to calculate the monthly expenses you have.
The ideal number for joining insurance or determining the sum insured is approximately 100 times your current monthly expenses. For example, if your current monthly expenses are 3.5 million, then the ideal and right sum insured for you is 350 million.
Do the Calculation #
If you want to take part in education insurance, do a detailed calculation of how many dollars of tuition funds you have to spend to be able to send your child to school starting from the school you want to attend. For example, from the lowest school level to the highest, also calculate the economic conditions in which there is a sustainable increase in the price of goods and services.
So that you know that in the future you need the appropriate funds when your child enters the world of school. This method will certainly make you determine a policy with a sum insured that suits your needs.
If you use an educational insurance product, calculate and detail carefully and very well how much money you have to spend for the needs of health problems the next time you need it. Everyone certainly does not want what is called sickness or unwanted things to happen before.
However, if you prepare all the possibilities that will happen well, then the risk that you will receive will be less. But beforehand, so that you can choose good insurance for your child, it’s good to know the types of insurance on a basic basis.
Get to know the insurance company #
As we know, in the US there are several insurance companies that have educational insurance products. Such as insurance companies Prudential, Allianz, and so on.
Before you decide to choose one of the companies mentioned earlier, it is highly recommended to get to know the insurance company first so you know the quality and the most important thing is to be more sure about the company you choose.
To get detailed information about the company, visit the official website and ask directly to the customer service center of the insurance company. You can also ask friends or relatives who have felt the benefits of one of these insurance companies.
Adjust Premiums with Cost of Education #
Some, even most insurance companies give you complete freedom in determining the amount of premium to be paid, but you are advised not to choose insurance premiums in small amounts. Why like that? This is because the inflation rate, especially in several countries in the last few years, has reached 12% to 15% with an estimated increase in the cost of education in the range of 20% to 25% each year.
Therefore, if the premium you use is low, then chances are you will not be able to cover the cost of educating your baby in the future. Ideally, insurance premiums per month in several countries range from USD 40 to USD 70.
Choose a Flexible Policy #
Some insurance companies do not allow their clients to take out policies from insurance if they have not reached a predetermined period. Things like this are fine, but it’s good if you choose an insurance company that allows you to choose a flexible policy.
This means that the insurance policy you can take out at any time without being bound by the regulations may not take it before it reaches the period specified by the insurance company. And can adjust it to the educational needs of your child.
Know the Additional Facilities #
Usually, an additional education-type insurance facility is in the form of protection or health insurance in the form of compensation for medical treatment costs at the hospital. You may consider this additional facility if one day you also need insurance for children’s health costs. But before you take it, make sure beforehand that this additional facility is not too much in cutting the amount of your child’s education insurance policy, so that in the future your child’s education funds are still sufficient.
Avoid Unnecessary Facilities #
Many insurance companies, for example, those that specialize in dealing with education, offer many additional options. For example, hospital care, surgery, and critical illness. You should always be careful with things like this because these additions can affect the amount of savings you have.
So, it’s better to just ignore the offer. The most important thing of all is, choose a credible and trustworthy insurance company. Learn everything in the previous insurance agreement letter first. If you are sure and do not mind, then you agree to the agreement letter.
Do Initial Research #
You can estimate the cost of a child’s education in the future according to their level of education. The way you can do this is to find information about the ins and outs of companies that are involved in the insurance sector. And most importantly, you are required to be able to predict the current cost of education, then accumulate it with future costs when your child arrives at school. That way you can allocate your finances well.
The Conclusion #
Meet Your Child’s Educational Needs
That is the discussion about the right tips for choosing insurance for your baby. Hopefully, the summary of the information in this article, can help you determine what insurance products are suitable and really needed by your children to support their future.
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