Basically, the savings / insurance is good. the point is that what we can produce as we are still productive, can also give us the opportunity to design our financial life in the future. Because no one knows what might happen tomorrow.
Insurance education and education savings basically has the same function, namely a special investment prepared for the tuition fee will suffice. To be on time for your children enter school or college, you do not need to bother anymore to think of where adequate education costs.
Despite having the same goal, but the education of insurance and education savings accounts have different characteristics. And to determine which one is better, of course we need to see which is more suitable for you run. Insurance is the insurance plus the investment in education for education, while education is an investment savings for education which are covered by insurance.
First, we will first discuss education savings. Education savings accounts is a specially designed savings in the bank where a customer periodically and automatically save into an account which was given a certain period in order to fit with school children's education schedule. Because the funds are locked, usually the bank will offer a return on investment is relatively higher than regular savings. You could say this product is a combination of savings and deposits, called the savings because setorannya done gradually and as deposits because of locked during certain time periods.
Although given period of time, but parents may withdraw savings before it's time to maturity. But of course the same as deposit, will be charged a penalty for this. I suggest that this is not done except in an emergency.
Aside from being a means of investment, education savings also comes with insurance. That is, if you as a breadwinner dies and can no longer saving for children's education costs, the savings deposit insurance will replace it. Without having to save again, the cost of education of children still met.
Both the insurance education. Because the essence of insurance products, life insurance rather, the education insurance is actually not much different from other life insurance products. That is a program that will give your family benefits if there is a risk of death. Benefit received is usually the compensation and return on investment for education. But if there is no risk of death, then the insurance will provide a number of other scholarships that are not derived from your investment in the form of premiums already paid.
As an insurance product, then this investment must not be cashed at any time. This new investment will be disbursed in two conditions. First, when matured, and the second is if there is a risk of death. Own maturity can be arranged and tailored to children's education schedule, to fit the child goes to school, pass the money liquid.
Usually the result of investment in education insurance is relatively higher when compared with education savings. But insurance can not be as flexible savings accounts, if they want stopped in the street, had to wait about 3 years until the cash value to be cashed. And usually, the process is even more complicated and takes longer than the education savings.
Looking at the characteristics of both is also concluded that education savings is short to medium term investments, while insurance education is a medium-to long-term investment.
But what worries many people is when we're exposed to disaster, while the family still be borne by us? What if there is no more income we can set aside for them? Very dangerous if regular savings that had been prepared specifically for them instead forced by our own depleted. Can also be precisely they who ultimately have to continue saving it, because if not, the original purpose for the good of them even threatened not happen. Then, what their future next?
So we can conclude that we are in need of 1 (one) product that can be a solution as a whole where;1. We can save with each goal ²2. If there / affected / unwanted things, such savings are safe, where the purpose of saving will still be achieved.
The question then is, where we get the program? Financial Institutions / Banks or Insurance Companies? You can answer it yourself and find appropriate solutions according to the benefits that you want.