Education insurance guarantees funding

To complete education requires large funds

 Education is the most expensive savings and will be rewarded the children when their parents no longer exist. Education funds are funds that are prepared for the needs of their children's education. The cost of education becomes increasingly large. Therefore, education funds should be prepared well in advance and not when children want to school.

Families who already understand the family expenditure and has usually been preparing financial planning education funding since the child was born.

There are several steps in preparing for education funding.

First, determine the child's school.
Families should know that education is clearly desirable for the child and adjusted to the ability of children. Families cannot impose to attend schools far above the standard value is the ability of the child.

Second, calculate the costs needed for the education of children. Families should gather information on the costs required for children's education. These costs include school fees, building fees, recreation fees, cost of books, and other costs.

Third, determine the rate of inflation from now until the child goes to school even when the kids get educated in the schools. The inflation rate can be calculated using inflation rates now. When the inflation rate is now too small, the estimated inflation rates to be raised. If the current inflation rate of five percent, then the family raise six or seven percent.

Fourth, calculate the interest rate prevailing at the future in accordance with the estimated inflation rate. Interest rates are a reflection of the prevailing inflation rate. Therefore, families must obtain a real interest rate that you want about one to two percent today, the prevailing interest rate is the number represents the number of real interest rates with inflation. When inflation seven per cent of the interest rate of eight or nine percent.



Fifth, determine the magnitude of savings that are made. When the funds needed have been determined and the amount of time until the school children to the family can determines the amount of savings each month.

Insurance Education

When families choose insurance education, it should be realized that besides paying an insurance premium, the family also invested. Useful insurance premiums to pay tuition fees when the family could no longer pay the mortgage investment. This could be due to the inability of the owners of premium cannot be worked or died.

When the family took the insurance education, household expenditures for education fund savings will be greater. On the other hand, the family does not need a headache thinking about investments that will be done to achieve the desired insurance educational funds. Future risk has been transferred through the family on which the insurance premium payments. But this insurance is not required if the family knew exactly health and for the foreseeable future. Families should know exactly the skills that family can provides the insurance education fund.

This education fund, the family will also face the risk, whether the risk of a tightening of family spending, investment risks, and risks that need to swell the funds for the situation. Families must prepare themselves to face these risks with careful attention to the insurance education fund