How an Education Plan Can Secure Your Child’s Future [Free Quote Available]
“…the best performing student with 415 marks is Anne.”
The house roared with applause. Anne had done it; the eight years of cold mornings and long nights had led her to this great achievement. Yet, instead of bursting with joy, Anne was sad.
She did not know where the fees to continue her studies would come from. Her father, who was the family’s sole breadwinner, had passed away months before the results were released, and her mother did menial jobs, barely making enough to put food on the table. Anne was distressed; she was going to miss out on her dream of being a doctor.
Understanding Education Plans and Their Importance
This is the unfortunate reality many students face. The loss of a parent or guardian could potentially mean an end to their education, but this should not be the case. An education plan can help you relax, knowing that your child’s education is catered for in case the uncertain happens.
In this article, we will:
- Explain what an education plan is and its benefits
- Help you determine how much coverage you need
- Explain why you should use life insurance to secure your child’s education
What is an Education Plan?
An education plan is a life insurance product designed as a savings tool for your child’s education. Under this policy, the parent or guardian is the life assured (the person whose life is covered in the insurance contract), while the child is the beneficiary.
Some of the benefits of an education plan include:
- You can start saving as soon as the child is born, allowing you to save over a longer period.
- It is a savings plan that comes with life cover, with your child as the only beneficiary.
- You have the option of adding Total and Permanent Disability coverage.
How Much Coverage Do I Need?
To determine how much coverage you need for an education policy, you must set a long-term goal. What are your aims for your child’s education? Depending on your needs, here are some factors to consider:
- School of Choice – More prestigious schools tend to be more expensive.
- Living Expenses – Apart from tuition, you must also factor in living expenses.
You can calculate how much coverage you need by using this simple guide:
Current Fees + Living Costs × Number of Years of Study = How much it will cost you
Remember, this is just a rough estimate. Other factors like increased tuition and inflation could affect the projected amounts.
Why Use Life Insurance to Secure Your Child’s Education?
Life insurance can safeguard your child’s future in the unfortunate event of your demise. The sum assured ensures that your child’s education can continue uninterrupted despite a loss in income. As a parent, it gives you peace of mind knowing that your child can continue following their dreams without any financial roadblocks in case anything happens to you.
Important Tip
Like any other financial product, never purchase a life insurance product you do not fully understand. Do not be afraid to ask questions.
Disclaimer
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as investment, financial, or taxation advice, nor to be considered an invitation, solicitation, or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice before making any investment decision in relation to any financial product.
Written by Anthony Adungo, Digital Sales and Marketing Officer, Jubilee Life Insurance Limited on 1st September 2021