Know 8 child education Insurance Risks that are not revealed by the Agent - Adult education insurance began extracted many Indonesia by some communities in addition to educational savings accounts. The consideration of the preparatory education of withdrawals in the future this is the presence of additional benefit protection in case of risk later in life. Growing number of users of insurance education is inseparable from the phenomenon of increasingly expensive tuition fees, the education cost trends are increasingly rising each year. Before deciding to take the insurance education, parents should know and understand in advance about these risks in order to take the anticipation. The risk is the other side of the benefits of an insurance product. There are at least 8 rare risks associated with insurance agents revealed that education here.
1. Child Education insurance is not the same as saving up if you put the money in the insurance, then the company will invest it in investment instruments that have risks, such as stocks, bonds, and others. If the investments made the company runs well, then buy insurance education could be the right step for you to run, but if the investments made the company suffer losses, could have the money deposited into a parent reduced or even exhausted.
2. Because its core business is insurance then there are many pieces of the cost for these products the funds deposited will be cut to a range of fees and commissions. The biggest cuts occurred in the first 5 years. Because the value of huge, outrageously amply cut could be funds remaining for investment becomes a bit. Then for parents who want to keep their funds for insurance education, then it must be prepared that the funds saved in the first 5 years would be very small.
3. Payment of premium for longer than given Actual products dealer long whether or not depends on the payment period is fortunately not the investments made by the company. When the results of the benefits of investing in accordance with expectations, then the payment period may be shortened, but if investment performance is not appropriate, then the parents have to pay longer. Unfortunately, many agents who promise payment period can be shorter, without notifying this risk.
4. Because of the premium money is divided for investment then the sum assured becomes relatively small Insurance education indeed provides the sum assured if the parents died. But many do not pay attention to the amount of sum assured that children will be received later. Thus the focus is set to the value of the investment can be achieved. By just focusing on the results of the investment, then the money life insurance protection to be minimal, so there is a risk that the number is very minimal or much of a Word is sufficient for the continuation of children's education costs.
5. Wrong Investment Instrument makes the realization of the investment result far below initial illustration On insurance education, money deposited will be implanted on the types of investments the Fund target to pursue education. Unfortunately, agents often choose the type of investment that has a high return, typically stock that unfortunately this type of investment also has a high risk as well. Errors in the selection of the type of investment will cause failure in achieving the target of Education Fund.
6. Parents do not read carefully the contents of the Policies insurance policies legal basis of any action related to the insurance, therefore parents who want to put the funds for his son's education in insurance education, we recommend that you read and understand all of the contents of the policy. If not careful, it could be a parent will get a risk in the form of a less than optimal result from insurance benefits.
7. Projections not reached due to the bombastic quotes at the beginning of the promotion is usually the first thing presented by the agent to parents related to insurance education is a projection of the value of the money that will be accepted and generally, the agent will show numbers the projection that looks good and optimistic. Unfortunately, many potential borrowers (parents) who automatically believe the projections given by an agent, but not necessarily the projection certainly materialize.
8. Additional benefits join Stuck (Rider) that makes investment results, not maximum Agent usually will also offer additional insurance rider or to potential clients. Some of the benefits of the additional insurance protection to include permanent disability, health or other protection. Well, that should be noted is an agent often does not inform and explain that by taking the same rider by reducing investment ration for children Education Fund. So the target funds education often becomes a fumble or lower due to take an extra insurance.