Taking advantages of Ensure Insurance Education product

Sometime the reason why some people decide not to take insurance policy is that they are not knowledgeable of which insurance policy will be suitable for them at a particular point in time.  Currently some insurance companies have taken time to simplify their policies and/explain how their various products work so that the layman on the street can understand. This week, we are highlighting the various advantages of one of the Ensure Insurance products, the Ensure Education Insurance and how it works.

There are various types of education insurance available, so consider the following before you commit to a policy:

Term Policy: Education insurance is usually a term insurance policy. This means that you and the insurance company agree that the insurance policy will run for a set period, which will usually be the time that you expect your child or children to be in education. During this period, you make regular premium payments to the insurer. The policy then pays out if you suffer the covered events (death, illness, injury) at any point during the period. Some policies let you start making premium payments and benefiting from the protection from when your child is born, rather than waiting until they start school.

Sum Assured: Check with the insurer to see how the policy pay-out will work. Many policies work on a sum-assured basis. This means the policy will list a set pay-out amount (the “sum assured”) which applies regardless of how long you have been making premium pay-outs and the total amount you have paid before you die. In some cases, the insurer will hand over the pay-out as a single payment. In others, the insurer will pay the actual education costs of your child until the pay-out total is reached or the insurance term ends, whichever happens first.

Critical Illness and Permanent Disability: Education insurance does not only pay out if you pass away. Many policies also pay out if are unable to work as result of a medical and thus lose the income needed to pay for your child’s education. This can include permanent disabilities such as from an accident. It can also include critical illness, which is usually defined as a serious medical condition where there isn’t a treatment that would make you fit enough to return to work. Ask your insurer how pay-outs work with critical illness and permanent disability as this can be slightly different to the way pay-outs work when you die.

Funeral Expenses: Some education insurance policies offer an extra benefit in the form of funeral expenses. This means the insurer will make a payment towards the cost of your funeral if you die, helping remove some of the stresses your family will face in this unfortunate event. Ask for details as a policy may pay out a fixed amount or instead pay out a percentage of the sum assured amount.

Savings Plan: With many forms of insurance, you don’t get your premium payments back, even if you never make a claim during the period of coverage. However, education insurance has an exception known as a savings plan. This offers all the coverage benefits of an ordinary education protection policy but also means you get back your premium payments at the end of the coverage period along with an interest payment. Before signing up to such a plan, make sure you understand how much the payments will be, when you’ll get the money back and how the interest is calculated.

What is education insurance?

Education insurance provides a lump sum for the future education of your children should you be unable to provide for them financially yourself. This article will help you to understand exactly what education insurance is, why you may need it and what to consider when shopping around for the best deal.

How can I buy education insurance?

There are many providers of education insurance, each offering various levels of cover. You can either shop around yourself for the best deals available online or contact your child’s school for a recommendation.

The process is fairly simple and will require you to choose a minimum duration of cover for the policy – often 5 years. This is why it’s important for you to have an idea in mind of the potential future prospects available to your child.

For example, if you live in an area of high unemployment, it may be worth paying a higher premium to guarantee a higher pay-out upon maturity – to cover the costs of your child relocating to a more prosperous area.

Ensure Insurance two education insurance plans are simple and affordable. Your children’s well-being and their future are precious. With our education insurance cover, they continue to receive the education you’ve always wanted for them even if you pass away or become disabled. Ensure continues to pay your children’s school fees until this benefit is exhausted.  .

If you would like more information or want to speak to one of our experts about the education insurance policies that Ensure offers, please visit our website for more details or choose from one of the following options to reach us.

• Call us on 08000-ENSURE • Get in touch via the contact form on our website • Email us anytime at info@ensure.com.ng

Who should buy education insurance and why?

Any parent or guardian that values the education and future prospects of their child should be considering education insurance. This is about giving you the peace of mind that your child will be provided for in your absence and can go on to become a productive member of society. What greater gift could a parent give than the gift of a prosperous future?

You should consider buying education insurance if you have good reason to doubt your ability to provide for your children long term. This could include an unfortunate medical condition that shortens your life expectancy, risk factors such as a past history working in dusty environments that could threaten your future health or dangerous working conditions such as mining or military service.

When should I buy education insurance?

If you believe you need education insurance and can afford the premiums, then you should purchase cover as soon you can. Education costs are always increasing, so the sooner you can start planning for your child’s future the better. This is especially important if you do consider your own life at risk, or are aware of potential future circumstances that could present a significant risk to your ability to provide.

How much does education insurance cost?

Like most insurance policies the costs of premiums vary based on many factors such as the following:

The age of your child: If your child only has five more years of education, the insurance policy is always going to be far cheaper than a ten-year policy.

The level of education you want to provide: Do you just want to cover the cost of your child finishing high school? Or would you like to provide for higher education or the possibility of specialist programmes/courses?

The health of your child: This isn’t ever going to be a pleasant topic to consider, but you need to take into account the future of your child. Do they have any life threatening illnesses or conditions that could hinder their chances of receiving a complete education?

Your age and health: Most education insurance policies cannot be entered into after the age of 57 and may not be valid after you pass the age of 60. You need to consider this as well as your own potential health risks before taking out a policy as it may attract higher premiums.

Additional benefits: Some education insurance policies are flexible, allowing you to ‘cash in’ the policy early to receive a lump sum. Or perhaps convert the education insurance policy into a different form of insurance.

As with any insurance policy, it’s important to search for the best deal – not only in terms of price but also the level of cover offered. This is a commitment that you must be willing to maintain long term in order to provide the best cover available.

Please remember to factor in considerations such as future changes in circumstances that could affect your ability to maintain the premiums – such as plans to purchase a more expensive property to accommodate an additional child.

How does education insurance work?

Education insurance resembles life insurance in many ways, but is tailored specifically at ensuring the future educational needs of your children are met. Generally, this means that a lump sum will be paid out to your children on an agreed date in exchange for your monthly premiums.

A good education insurance policy will generally take into account factors such as inflation and tax to ensure that your children get the right pay-out to complete their education. Some policies even include extended benefits, such as paying towards your child’s marriage or providing a lump sum for the child to use outside of education needs.

Some education policies will pay out on an agreed maturity date, regardless of your health status. This is generally when your child reaches the higher education age. As such an education policy can be viewed as an alternative to creating a ‘college fund’.