Learn Types of Education Plan
Putting an education plan for your children will need serious planning to do. It includes whether or not that you want to put one under their name or not, what king of insurance plans that you think would be suitable for your need, until what is the best insurance company available that you can choose. This article will address the types of education plan that you need to know before deciding on to register your child on one.
Types of Insurance Plans You Need to Know
- Endowment Plan
One of the oldest education protections out there is called Endowment. This essentially is a plan that will ensure a fixed number of funds that your child will be received. So you know exactly how much you are going to get from the insurance. The endowment plan has a relatively small amount of premium that you need to pay each time. The problem with this is that if in case some inflation happens, your fixed number may not cover your child’s education fully.
- Money-back Plan
As one of the types of education plan, Money-back insurance will guarantee your child to get a regular interval of benefit. It will benefit those who need a huge lump sum of money at regular intervals and help you in life stage planning. Because it uses an investment and saving plan, the disadvantage of it is that if your investment doesn’t match with the inflation rate. Thus, making you have a higher risk of loss and also gaining so much more than the money you put. You also have a higher premium to pay.
Between those two education insurance plans, you can decide on your own which one that is better for your child. Whether you choose Endowment or Money-back plan, you will get each advantages and disadvantages on its own. But, better yet if you start a savings account that you can plan and use as your child education fund. This will make you have complete control over your money instead of depending on it on the insurance company.