Recently, complaints have emerged on social media regarding misperceptions about the benefits of insurance for education funds. So, so that you don't make a mistake, let alone make the wrong decision, let's learn what the benefits of insurance are for planning education funds!
Difference between Education Insurance and Children's Education Savings
In recent times there has been a misinterpretation among the public regarding a series of benefits that can be obtained from insurance for planning education funds. Many people mistake it for "education savings", which is different from the basic concept of insurance for education funds, namely providing life protection for parents or insurance premium payers. So, education fund protection together with the results of the investment instrument (if any) can be used as education funds if the individual who paid the premium dies, experiences certain conditions recorded in the agreement, or has matured.
Children's education savings are bank savings specifically for preparing children's education funds, starting from preparing funds for kindergarten, elementary school and university school fees. Compared to insurance, education savings generally only have a savings period of 2-5 years. Education savings also generally do not have the potential to generate funds from investments, but are limited to bank interest which is sometimes smaller than regular savings interest.
Both insurance and savings for education funds have their own benefits in preparing school financing in the future. However, if you are further interested in the broad benefits offered by insurance for education funds, Investment Linked Insurance (PAYDI) could be an option as a protection instrument linked to investment benefits. The PAYDI insurance product has an investment fund portion which, if not used to pay premiums while the policy is active, the investment funds collected can be used for various things, including education funds.
However, it needs to be emphasized that the potential benefits of investing in PAYDI are added value to the benefits of protection. To get protection from the protection benefits, the policy holder will be charged a fee according to the type of protection they choose. These costs will reduce the portion of the investment that policyholders can enjoy. Or in other words, the more various types of protection you choose, the greater the insurance costs paid will be.
Meanwhile, to specifically accommodate the need to provide protection for children's education guarantees or individual beneficiaries designated in the policy, Prudential Indonesia introduced PRUCerah Sharia Life Insurance. This is a dual-purpose insurance product that provides benefits in the form of lump sum cash withdrawals and monthly cash withdrawals for 4 years. In addition, to ensure the continuity of education of children or individual beneficiaries designated in the policy, this product provides a free contribution benefit if the customer who paid the premium dies and is in a critical condition or suffers total and permanent disability.
PRUCerah Sharia Life Insurance is available in two plan options to meet the needs of customers and prospective customers in planning education funds, namely the PRUCerah plan and the PRUCerah Plus plan. The main thing that makes the difference is that the PRUCerah Plus plan also includes a Free Contribution Benefit if the additional insured participant experiences a critical condition, and can be paid after a waiting period of 90 calendar days from the start date of participation or the last policy reinstatement date (whichever is chosen). last occurred).
Hopefully the summary of the explanation above can give you insight into determining the management of education funds intelligently and wisely!
