Often we are confused what the difference between education and training of insurance savings.
In practice, the insurance savings is good. The idea is that we do while we are still in production can also give the opportunity to live our financial planning in the future. Since nobody knows what might happen tomorrow.
insurance education and training savings is essentially the same function, ie a particular investment mencukup prepared for the cost of training of the future. To arrive in time for their children to school or university, you should not worry about thinking that the cost of an adequate education.
Despite the fact that the same effect, but the formation savings insurance and education have different characteristics. And to determine the best course to see what is needed better prepared to play your. Insurance is extra investment in education for education, while education is a savings and investment for education, which are covered by insurance.
Before discussing the savings in education. education savings accounts is a specially designed bank savings as a regular customer and automatically stored in an account that is given a specific deadline to meet the educational program for school children. Once the funds have closed, the bank usually return on investment is relatively higher than normal savings. One could say that this is a combination of savings and deposits, savings appointed setorannya be done gradually, as a deposit as blocked for certain periods.
Although some time, but parents can withdraw prematurely because of these economies. But certainly, the deposits will be charged a penalty. We suggest that this is not done, except in emergencies.
Besides being a means of investment, savings, education comes with insurance. This means that if you as head of household dies and can not save their children's education, insurance for deposits will be replaced. Again without saving the cost of raising children still met.
Education insurance. Because, in essence, an insurance product, life insurance, insurance, while in reality not very different from the lifespan of others. This is a program that your family will benefit if there is a risk of death. Benefit received is usually offset costs and return on investment in education. But if there is risk of death, the assurance of a number of other scholarships that are not derived from its investment in the form of premiums already paid.
As a safe product, surely this investment can be withdrawn at any time. This new investment can be diluted with two conditions. First, at that time has become, and the second question is whether there is a risk of death. duration can be arranged and adapted for children's education program for children at school to fit, pass the cash.
Mainly due to investments in insurance education is relatively high compared to education savings accounts. But insurance may not be as flexible savings accounts, if you want to stop halfway, had to wait about three years later, are not redeemable for cash value. And in general, the process is complicated and it takes more than a savings education.
The characteristics of both is also concluded that education is an investment in savings in the short and medium term, while teaching a safe environment for long-term investment.
But what worries some people is when they are taken while the family still supported by us? What happens if the income can book for them? Very dangerous routine save, specially prepared for them was, in fact, forced by our depleted. It 'also true that the end must continue to save, not because if the original purpose for the good they have even threatened to run. Then, if your future?
Therefore, we conclude that we have a product (single) needed a solution that can be;
1. We can save money with their objectives ²
2. If / / accident unwanted things, such as deposits safe, where money and equipment to save to reach.
The question is where you start the program? Financial institutions / banks or insurance companies? The answer yourself and find solutions that benefit as you want.