Choosing the right insurance for your baby is a wise step for every parent to prepare for their children's future. In this article, we will try to share about the world of insurance trinkets, which can be a reference before you decide to use insurance products for your child later.
Most people choose to use insurance to prepare for their children in the future. The question now is if you want to use insurance as a guarantee for a child's future is how to choose good insurance for children?
When choosing insurance that is really needed for children, there are several things and aspects that must be considered first before you decide to use the insurance services. Among these aspects you need to know include:
1. Top Priority
Determining the main priorities or reasons for choosing an insurance product is the most important thing. Is it for family financial security or financial protection, or is it intended for other things such as funds for education, health funds or long-term savings. As a parent, you should have thought of everything in advance, so that in handling it you are not overwhelmed.
2. Ability possessed
To decide to use insurance services, of course, must be adjusted to your abilities and conditions now. It is intended that you prepare yourself well both in terms of funding and also in terms of your readiness. if you decide to use the services of insurance products or open a policy for your family's financial protection, then the first thing you can do is to calculate the monthly expenses that you have.
The ideal number for taking out an insurance or determining the amount of coverage is approximately 100 times your current monthly expenses. For example if your monthly expenditure is now 3.5 million, then the ideal and right insurance for you is 350 million.
3. Do the Calculation
If you want to take education insurance, do a detailed calculation of how much money you need to pay for the tuition to be able to send your child to school starting from the school you want to attend. For example, from the lowest level of school to the highest level, count also the economic conditions in which the price of goods and services continues to increase.
So you know that going forward, you will need appropriate funding when your child enters the school world. This method will certainly make you determine the policy with coverage that suits your needs.
4. Know the Insurance Company
As we have seen, in Indonesia there are several insurance companies that have education insurance products. Such as insurance companies Prudential, Allianz, Bumi Putera Insurance, Manulife, AXA, and so on. There is a saying saying do not know it is not dear, so does it apply in choosing an insurance company, before you decide to choose one of the companies that have been mentioned earlier, it is strongly recommended to know the insurance company first so that you know the quality and most importantly more confident again with the company you chose.
5. Adjust Premiums with Education Costs
Some, even most insurance companies give you full freedom in determining the amount of premium to be paid, but you are advised not to choose insurance premiums in small amounts. Why is that? Because the rate of inflation, especially in Indonesia in recent years reached 12% to 15% with an estimated increase in education costs in the range of 20% to 25% each year.
Therefore, if the premium you use is low, then you may not be able to meet the education costs of your baby in the future. Ideally, the insurance premium per month ranges from Rp. 500,000 to Rp. 800,000.
6. Choose policies that are flexible
Some insurance companies do not allow their clients to take out insurance policies if they have not stepped on the specified period. Things like this are fine, but it's good if you choose an insurance company that allows you to choose policies that are flexible.
This means that the insurance policy you can take at any time without having to be bound by regulations may not take it before reaching the period specified by the insurance company. And can adjust it to the educational needs of your baby.
7. Know the Additional Facilities
Usually, additional types of insurance education facilities are in the form of protection or health insurance in the form of compensation for medical care costs in hospitals. You may consider this additional facility, if someday you also need a guarantee for children's health costs. But before you take it, make sure in advance that this additional facility does not greatly reduce the amount of your child's education insurance policy, so that in the future your child's education funds will be sufficient.
8. Avoid unneeded facilities
Many insurance companies, for example those devoted to handling education, offer many additional options. For example hospital treatment, surgery and critical illness. You should always be careful with this kind of thing because the addition can affect the amount of savings you have.
So, it's better to just ignore the offer. The most important thing of all is, choose a credible and trustworthy insurance company. Learn everything from the previous insurance agreement. If you are sure and do not mind, then you agree to the agreement letter.
9. Conduct Preliminary Research
You can estimate the cost of education for your baby in the future according to your level of education. The way you can do is to look for information about the ins and outs of the company engaged in the insurance field. And most of all, you are required to be able to predict the cost of education at this time, then accumulate it with future costs when your baby arrives in the world of school. That way you can allocate finances owned properly.
Meet Your Child's Educational Needs
Thus the discussion of surefire tips on choosing insurance for your baby. Hopefully with the summary of information contained in this article, it can help you to determine what insurance products are suitable and much needed by the baby to support its future.