"Parents have a prior right to choose the kind of education that shall be given to their children" -- United Nations, Universal Declaration of Human Rights, Article 26(3)
Endowment insurance pays the sum insured if the insured dies within the term of the policy or if he survives to the end of the term. It is basically a combination of a term insurance and savings. Endowment insurance is very popular for those who want to save up enough for their newborn child's tertiary education in say 20 years' time.
WIth endowment insurance, the capital sum needed for education will be payable when the policy matures in 20years time ie. the child reaches 20. Should the insured die before the child reaches age 20, the sum insured is still payable.
The advantage of endowment policy is that it ensures that the child has the opportunity to receive tertiary education regardless of whether his pareent is alive or dead. Typically, life insurance always comes with the disability benefit that waives the premiums when the insured is totally and permanently disabled. With such a cover, the parent can be rest assured that his child's education is virtually a certainty.
Endowment insurance purchased for education purposes is called Education policy. It is best that the Education policy be purchased at the birth of the child to have the maximum period to spread out the high cost of tertiary education. However, the policy can also be taken out at a later stage provided the period of savings is long enough, say 8 years, for the fund to grow to a substantial amount. In this case, if the policy is to mature when the child reaches age 20, the parent should take out the Education policy preferably before the child is 12 years old.
Though less common, endowment insurance can also be used to provide adequate fund at retirement at, say age 60. As in the case of an Education policy, the earlier the insured starts saving , the bigger the saving s will be. When the policy matures upon the insured reaching age 60, the amount of insurance purchased will be released and can be used as a single premium to buy an annuity policy.
Endowment insurance pays the sum insured if the insured dies within the term of the policy or if he survives to the end of the term. It is basically a combination of a term insurance and savings. Endowment insurance is very popular for those who want to save up enough for their newborn child's tertiary education in say 20 years' time.
WIth endowment insurance, the capital sum needed for education will be payable when the policy matures in 20years time ie. the child reaches 20. Should the insured die before the child reaches age 20, the sum insured is still payable.
The advantage of endowment policy is that it ensures that the child has the opportunity to receive tertiary education regardless of whether his pareent is alive or dead. Typically, life insurance always comes with the disability benefit that waives the premiums when the insured is totally and permanently disabled. With such a cover, the parent can be rest assured that his child's education is virtually a certainty.
Endowment insurance purchased for education purposes is called Education policy. It is best that the Education policy be purchased at the birth of the child to have the maximum period to spread out the high cost of tertiary education. However, the policy can also be taken out at a later stage provided the period of savings is long enough, say 8 years, for the fund to grow to a substantial amount. In this case, if the policy is to mature when the child reaches age 20, the parent should take out the Education policy preferably before the child is 12 years old.
Though less common, endowment insurance can also be used to provide adequate fund at retirement at, say age 60. As in the case of an Education policy, the earlier the insured starts saving , the bigger the saving s will be. When the policy matures upon the insured reaching age 60, the amount of insurance purchased will be released and can be used as a single premium to buy an annuity policy.
