Educational insurance - A modern answer to the old problem

The history of the life insurance industry will be a long and complex subject that can be encapsulated in a few lines of description, but most historians agree that the starting point of this concept is primary. It was the funeral fund of the Roman legion led by Gaius Marius.

The prime minister, who was seven times in charge of the senate (the highest position in Roman times), proved that his military prowess as well as his economic prowess led to the creation of a special club in the corps. under his authority. Each time a member of the group dies suddenly, the other teammates donate money to the funeral for the deceased. The notion that burial was so important to the deceased's soul could be said to be a very effective way of caring for the soldiers. The success of Gaius Marius led to his proposed model spreading to other legions of Rome, in addition to the original burial arrangements, which provided money to the families of his comrades. lost-life insurance was officially born like that. Starts early, but life insurance in general has changed little over the course of two millennia. Only in recent years, as the emerging financial markets have exploded, new life insurance products for the narrow and very specific purposes of people have become popular, This is one of the packages. What is education insurance? Essentially, the education insurance product is a combination of term life insurance and personal savings. Customers will choose how much money should be deducted periodically to put into the fund and when the contract will expire. If only pure savings are considered, education insurance will cover a certain amount of money at maturity. Parents can use this savings to cover their children's college education. study abroad and other educational expenses incurred. But the most valuable aspect of this product lies in the risk-taking effect. If a parent dies while the child is still in school, the material loss resulting from the loss of the caregiver will be minimized by benefits. Death insurance paid to the family. In addition, the child will receive the savings when the contract expires - usually coincides with the start of college. Briefly, but to understand why educational insurance products such as Bao An Dang Khoa are of great interest to parents can not ignore three great advantages of this type of insurance: 1. No risk With the goal of ensuring a child's future, education insurance will not be at risk of capital loss or investment discrepancies. The positive side of this product is that 100% of the children of the customer will receive the savings when the contract expires. However, with the high degree of safety that will be the low income rate, the savings portion of the education insurance policy will be incorporated into the absolute portfolio without any uncertainty. not tall. Previously, the traditional solution to future education costs would be to save yourself and invest in stocks, bonds or treasury shares at an acceptable level of risk. The thing is that with the financial market in the country is increasingly complicated and unstable, the way to do this handicraft can cause damage difficult to save when the risk of capital loss is practically unavoidable. Remember, this is a very important money for your children's future, the difference between having money (no risk) and having more money (high uncertainty) will not be worth the trouble. with no risk of losing money. Thus, the absolute safety of the investment value of education insurance is an important variable when parents consider options for their children to study abroad. 2. No negative impact on scholarship According to calculator Scott Anderson, the eduLaunchpad.com operator, the tertiary education funds will lose up to 5.6% of the value when the beneficiary is a young student officially enrolled. In general, all student support policies or scholarships take into account the financial capacity of the recipient and will decrease accordingly if the student has other financial support. The enormous advantage of life insurance for educational purposes is that the amount actually received from this contract will not be included in the list of these sources of funding. 3. Flexible in use Behind every security contract is also a life insurance contract death. And with such terms as usual, customers will find it difficult to make use of it as a financial asset by borrowing on an insurance policy. However, the ability to accumulate cash flow in half the savings of education insurance, especially when the cash flow is absolutely no risk that makes insurance companies consider this.