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Today’s post comes from fellow S&S reader, David. If you’re concerned about the rising costs of education, check out these tips on using education insurance to help safeguard your child’s future.

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How an Education Insurance Plan Helps Your Child’s Future

An education insurance plan is something many parents should consider. After all, parents dream of securing their children’s future, especially their education.

But this is a challenging thing to do. Unforeseen events can affect our finances drastically. These events can be as personal as losing a loved one or as global as the inflation rate of school fees. Having an early start for a plan can be a reasonable recourse for such events.

What are the benefits of an education insurance plan?

An educational insurance plan is meant to cover your children’s school fees. It’s no secret that private schools have expensive costs for tuition, book, and supplies. Of course, many of these schools offer scholarships,  but these sometimes only cover up to 50% of the total fees. Additional fees like books and supply may not be covered by the scholarships.

But even if your children opt for a public school, there may be unexpected expenses.

An education insurance plan can complement the options that your children’s schools will provide. Since there is also an insurance component to it, your children’s welfare is covered in case something happens to you.

What are the disadvantages of an education insurance plan?

There are some things to consider when you want to apply for an education insurance plan for your children. You will have to pay a monthly premium for it. Some of them also come with add-ons for better coverage, but you’ll need to pay higher monthly premiums for these extras.

Always check your monthly budget and make sure that you can pay the fees. Otherwise, you might have to give up the whole plan and everything that you’ve contributed so far. Also, your children’s other school needs will not be covered. You’ll need separate savings for things like food, allowance, or transportation costs.

There is a risk that the plan’s total coverage might not be enough if inflation rates rise too steeply. You should be prepared if this occurs.

How do you get the best plan for your children?

Experts at Insular Life share these tips:

• Start by doing research. Educate yourself of the companies that offer education insurance plans. Learn about the different terminologies. Compare the various plans and consider their pros and cons. Some companies even have online calculators that let you estimate how much you’ll be paying for one. This initial research will help you when you start talking with insurance agents.
• Make sure that the company you want to deal with is legitimate and has a good history of satisfied clients. Doing this can help you avoid being scammed by illegitimate companies looking to make a profit.
• Don’t sign up with the first insurance provider you contact. Don’t be swayed by a company’s “sweet talk.”
• Make your choice based on your needs and budget. As stated above, you must be able to pay the premiums. What you pay should not be too much of a burden on your family’s finances.
• Start early. Remember, you are establishing a plan for your children’s future. Don’t wait until they’re old before starting on this plan.
• Don’t be afraid to ask your questions to an insurance agent. An agent from a reliable company will be happy to help you make the best choice for your children’s future.

What could be considered a small investment could go a long way in securing your children’s future. Start an education insurance plan now so that you don’t have to worry about your children’s educational security.