07/12/2023
Why Parents Need Children Education Heirs Life Insurance
The role of education in the future success of a child cannot be underestimated. Education helps you develop critical skills, exposes you to better career opportunities and generally sets you up for life success.
For parents who want to give their kids a great head start in life, they know that quality education is part of the recipe needed. However, quality education doesnโt come cheap, and lifeโs twist and turns can hinder the plans you had for your childโs education.
This is where Children Education Insurance comes in.
What is Children Education Insurance?
This is a type of insurance that helps cover the costs of a child's education, including tuition fees, and other educational expenses if the unfortunate happens to the parent. It is designed to ensure continuity of your childโs education no matter what happens in life.
There are different types of education insurance policies for children, each of which has its own specific features and benefits. Among these are Prepaid tuition plans, Education Savings plans, and Child endowment Insurance Policies.
Prepaid tuition plans allow you to pay for your child's future tuition costs at current prices. This can be a good way to save money on costs in the future. This type of education insurance is rarely obtainable in Nigeria. However, Child Savings Scheme and Endowment plans are commonly offered by Nigerian insurance companies.
With the Child Savings Scheme, a fixed duration is set by the insured and he/she starts saving money every month throughout the duration. He also pays a mandatory life insurance premium once a year for his beneficiary to qualify for a life insurance fund in the event of death. A typical example of this type of children education insurance is our MyHeirs Plan.
With the MyHeirs plan, parents can save periodically towards their childrenโs future. The parent also chooses a bulk sum as life insurance amount, and pays as little as 1% of the amount, as premium. For instance if you choose to save #5,000 every month for your child, and want an additional #2,000,000 for your child if the unexpected happens, here is what youโll pay:
Savings contribution: N5,000 monthly
Life insurance amount: N20,000 yearly.
Now if death happens within this period, your stated beneficiary (most likely your child) will earn your total savings plus interest and the life insurance amount which is N2,000,000 in the example above. If you survive the plan, you (or your beneficiary) would still get your total savings contributions plus interest. For a moment, can you imagine how many N20,000 paid per year makes N2 Million? Thatโs 100 years of savings! But you get this as extra financial security for your child with our education insurance plan- MyHeirs if loss of life occurs within the set duration of the plan.
Now with the Child Endowment Fund, the insured is not saving an amount every month. Instead, he is required to pay a premium (monthly, quarterly, or yearly) for the child to qualify for a certain amount in the event of death. An example of this type of children education insurance is our MyHeirs Plus Plan.
If anything happens, even on day 2 of the plan, your beneficiary (most likely your child) gets the total target amount plus bonus. If you survive the duration of the plan, you still get the total target amount plus bonus.
Education insurance is a sure way of leaving a lump inheritance for your child (or children) to financially secure their education.
Ultimately, whether the savings scheme or an endowment plan, education insurance can be a good way to secure a childโs future by helping parents to plan and prepare for the cost. It also gives peace of mind knowing that no matter what happens, there is a plan in place to get them to any height they want in life.
Would you like to start a plan for your child today? Chat with Heirs Life here. whatsApp 0703 841 7781
