The education insurance – What is it?
Anyone who has children comes in principle not around it to save for it. Not only for the “little things” of everyday life. Above all, the future plans of the young are the ones that are not usually possible without sufficient financial resources. The long term is always the payment of a license.
But also the later costs in connection with school, training and study should not underestimate parents and even grandparents. Here there are many possibilities to invest money in the long run for children. Ranging from traditional fixed-rate contracts for various types of insurance savings to promising investment savings plan, anything is possible. The often best variant consists in a mixture of the offered savings products. In this way, the saver is very flexible.
The education insurance is a very common selected variant of saving for children and grandchildren. This is not something directly to the subsequent training or a study done of the child. The term is rather clear that this is a kind of savings plan with long-term savings goal. The education insurance is usually the name of a parent of the child be protected and it is basically nothing more than a “small” life insurance. This will set a target amount that is paid at a certain time.
The special feature of the education insurance is that the target sum is paid even by the agreed date, if the parent should die during the contract period. This is the case, no more be savings must be made. The distribution of capital takes place as already mentioned anyway.
Who benefits from the completion of an education policy? Through the combination of death protection and save contract, several financial goals can be connected. A degree is worthwhile, especially if there is a major earner in a family that will be covered. To create a basic security for this case, an insurance training is used. However, such insurance is limited in scope only to the protection of the child. The sums insured are usually too low to ensure the protection of an entire family. In this case, a traditional life insurance can be used.
Parents who wish to use education insurance should be also aware of the fact that this insurance can often achieve not yield an alternative investment. This is the so-called risk share in the monthly savings contribution. This will be kept by the insurer and guarantees the described death protection. The amount that can be saved ultimately still is therefore lower than the monthly payments of saver. The difference will be recouped over time by the insurer. Safety is the priority that a certain amount is also available in case of emergency, such insurance is quite suitable.