5 Risk Insurance Child Education Not Revealed by the Selling Agent
Before discussing 5 insurance risk children's education, it would be better to emphasize the term 'insurance education' is increasingly becoming a misunderstanding among the public, especially among the elderly. It is widely understood by the common people is the insurance of education is often equated with education savings plans, but they have the education funding mechanism that is far different.
Insurance education is more synonymous with non-bank products held by an investment instrument in meeting the cost of educational needs, or better known as unit-linked investments. While education savings plans are products of pure bank held by the bank as a container in arranging finance to meet the cost of education.
Education is an investment for the Future of Children
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The cost of education is increasing followed by the cost of everyday life, has made many parents who worry about their children's education expenses later in life. This makes a wide range of financial planning alternatives they take. Moreover, the current education insurance companies more intensively promote their products as an alternative solution plan their future children's education expenses. This educational insurance products in the category of insurance plus investment or insurance world known as unit-linked.
Actually, there is nothing wrong with education insurance unit this link, but you need to know more about is what is the procedure and the success rate of such insurance to ensure the continuity of children's education. This is what most people still do not know more details.
There is a lot of information that needs to be observed that we are always careful in choosing a financing plan educational programs as well as unit-linked insurance education, as most traders, there are some facts the risks these products are not or rarely disclosed to the customer.
Here are 5 insurance risk education (unit linked) are mostly expressed when an insurance agent came to your place to explain the details of the product:
1. Risk Education Unit Link Insurance contrast to Saving
At the time of selling agent insurance proposal handed to you sometimes they just say profits without giving the opportunity for potential clients to think about the risks that are likely to happen. Because there is the principle of education in the insurance and risk profile very different from education savings plans.
Rarely that education insurance sales agent says that the unit link insurance education is an investment vehicle that could be used to plan for the cost of education with two possibilities, namely profit or loss.
Profit or loss is also highly dependent on market conditions for unit linked insurance education is basically putting a premium paid by the customer to the posts of investments with different instruments such as bonds, stocks, and so forth. And very rarely did the realtors say that the education unit-linked insurance does not have a guarantee from the government.
2. Pieces Actual Cost Great Fair
Do not be surprised if you follow the education unit link insurance before 5 years you will find the value of investments may fluctuate or even dropped drastically. This is because the education insurance (unit linked) are pieces of a sizable fee. The pieces are sometimes hidden costs when you're given proposal.
As anticipatory measures you have to be smart as a prospective customer and you have to ask the total discounted cost or commission charged. Usually the cost cuts were greatest in the first 5 years. With it you can anticipate and can invest ahead of time so that funds are prepared for such education will be enjoyed at the appropriate time.
3. The term of the Delayed Payment
In general, the sales agent will always instill optimism to prospective customers that they have the insurance premium payment period of education is very short and when the payment period has been completed, the customer no longer need to pay a premium.
This is not entirely true given period in insurance payments depends on the result of investment returns. Therefore, parents should have the anticipatory measures for premium payments for longer than the time promised.
4. Money Life Protection
The next important thing to note with the following insurance education of children is the size of the sum insured when anything happens to the parents. The most fundamental question here is when something happens to the parents whether the child will have enough life insurance or charge until they leave school?
Remember that insurance education through this pathway offers life insurance money were very small because the focus of the unit link is a result of the investment. If the result of a large investment then maybe money can be insured too big.
5. Investment Instruments Unclear
Here the points that need to be understood is what the appropriate investment instruments for the financial plan you want. Do not be tempted by the name of high return. If you ask the sales agent, then of course he would choose an instrument that return is high, such as stocks. Of course this is very reasonable since it became one of the mainstay them that you are interested.
You need to clarify and especially should learn about the safest investment instruments to be used. Remember that in the world of investment, high return usually always coincided with high risk.
Insurance education in the category of long-term financial plan, therefore, before you buy these products to understand the products and the risk of the above well in order not to regret later.