The child education insurance in California is akin to a life insurance policy which has been specially designed as a saving tool. An education insurance can be a great way to provide a lump sum amount of money when your child reaches the age for higher education and gains entry into college (18 years and above).
This fund can then be used to pay for your Childs higher education expenses. Under this insurance, the child is the life assured or the recipient of the funds, while the parent/legal guardian is the owner of the policy.
Two types of education
There are two basic types of education plans_ endowment and investment-linked policies. Endowment policies resemble a savings account with insurance benefits whereas investment-linked policies let you invest and still retain coverage. For both policy types, a lump sum benefit is typically released upon maturity plus bonuses on the accumulated premium.
There are some questions that are important for education insurance in California such as:
What is Education Insurance?
Education insurance provides a lump sum for the future education of your children should you be unable to provide for them financially yourself.
What else you need to know about education insurance?
When it comes to education insurance in California , consider that this is a long-term policy. Your financial commitment typically lasts 18 to 23 years. This means that you would need to financially keep up with payments over an extensive time frame or potentially lose your premium contributions.Â
When should you buy education insurance?
If you believe you need education insurance and can afford the premiums, then you should purchase cover as soon you can.
Who should buy education insurance?
Any parent or guardian that values the education and future prospects of their child should be considering education insurance.
The cost of education
Its no secret that higher education is expensive and its certainly not getting any cheaper what with inflation and general cost increases.
Education policies may also offer added benefits such as:
- Sum assured benefit
- Funeral expenses
- Critical illness benefit
- Permanent disability benefit