The most important thing when you become a parent is to make sure your child's future is guaranteed. Preparing for this future starts from health costs to education funds that can ensure they get the best level of education, even if you are gone.
One of the financial products that you can use to prepare for this future is insurance for children. However, there are so many child and family insurances on offer out there. So what do you need to consider when choosing the best child insurance?
Confused to choose ? Reasonable. Moreover, for you young parents. What are the things that need to be considered from now on to ensure the future of your children is secure ? Come on, take a look at the following notes so that the consideration of choosing insurance for your child is complete and thorough!
Consider this when choosing the best child insurance
1. Choose a child insurance that provides health and life benefits
One aspect of basic welfare that parents need to prepare for their children is child health. So that children get the best health insurance services when they are sick, you can choose insurance that provides health protection benefits and life protection for children. Generally, this kind of insurance is available in family health insurance, where one policy can cover the whole family.
In choosing hospital benefits for children, you can consider the benefits you get from office health benefits. Thus, you can choose the benefit of reimbursement of medical expenses or hospital benefits according to your needs.
2. Consider the cost of education in choosing the best child insurance
One of the main concerns of parents is the education of their children. Keep in mind, the cost of education today will be different from the next few years, when your child enters a certain educational age. Likewise, tuition fees must be prepared early if you don't want to be overwhelmed later on.
You can prepare for this tuition fee by having pure life insurance that also offers cash value. You can use this cash value for future purposes, one of which is education funds. In the insurance market, pure life insurance that offers dual functions in the form of death benefits and cash value for education funds is also called endowment life insurance.
In determining the UP and the cash value that will be formed, you can calculate the education funds needed. To make sure you don't miscalculate, make a note of the schools you want to go to and then check the fees. Don't forget to calculate the value of potential inflation during the current year to the target year, so that the funds prepared do not miss the numbers. It is not wrong to make several options, adjusted to the best and worst possible family financial conditions.
Keep in mind, the cost of education today will be different from the next few years, when your child enters a certain educational age.
3. Recognize the risks of investing in child education insurance
Another type of child insurance that provides protection and cash value benefits is unit link insurance, which is both insurance and investment. In contrast to the cash value found in dual-purpose life insurance, the cash value of unit-linked insurance comes from the development of investment funds in the capital market. Thus, this investment is at risk of rising and falling, depending on market movements.
If you choose to set up education funds through unit-linked health insurance products or unit-linked life insurance, be aware of the risks of this investment. Because, the name of investment there must be a risk of profit or loss. Understand these risks by learning the ins and outs of unit link insurance so that you can choose the right capital market product.
4. Ensure the credibility of the selected child insurance company
The track record of the insurance provider is something that you must explore carefully. You can check it on the website of the Financial Services Authority (OJK) and the news. Do not try to choose an insurance company that does not display their profile completely and clearly. A good insurance company will also explain the mechanism for paying premiums, sum assured, and the amount of other costs clearly. Don't be lazy to browse about all the terms that appear in the offer, okay?
5. Minimize all other possibilities that interfere with financial conditions
No one can say for sure how your condition as a parent will be in the next five or ten years. So, don't just focus on the cost of education in preparing your future. To minimize the possibility of a child's education being disrupted because something bad happens to you, you also need to protect yourself with life insurance and health insurance.
Types of insurance for children you can consider
From the considerations above, the following types of best child insurance can be your choice to prepare for your child's future:
Life insurance
The type of protection that must be owned by those of you who are married. By having the best life insurance, your family will get the Sum Assured if you die. The Sum Insured can be used for many things, such as income replacement (if you are the breadwinner), inheritance, children's education costs, and others.
Dual life insurance
This is a type of life insurance that offers life protection as well as children's education funds. According to the OJK website, dual-purpose insurance is protection that provides the sum insured when the insured experiences risk within a certain period, while providing the entire sum insured if he is still alive at the end of the coverage period.
Health Insurance
This needs to be taken into consideration because one of the things that can damage your financial planning is medical expenses. Moreover, treatment for critical illnesses such as stroke, heart disease, or cancer.
So have you made your children's future plans with complete consideration? Come on, start calculating from now on the best child insurance costs so that you have more time to prepare various protections, one of which is through insurance for children.
Post a Comment