Suppose Mr. T insured a 50,000-guaranteed education annuity insurance for his newborn son a year ago, and attached a 50,000-guaranteed additional child critical illness insurance. He originally intended to pay premiums to the baby 18 in installments, and pay an annual premium of 5026.5. When you arrive at the baby 18 to 21, you can receive 15,000 college education money each year, and you can get back 40,000 when the insurance expires.
After paying for one year, Mr. T found that he invested 5,000 funds every year. After 18, he got more money every year than insurance. So in the second year, Mr. T retired and invested 10,000 in the fund.
However, in the second year, Mr. T unfortunately died unexpectedly. The only investment made for baby education during his lifetime was only 10,000, and even if the average annual return rate of the fund remained at 10% in the future, there was no late investment, until the baby was 18 It can only accumulate around 45,000.
However, if there is no surrender, because the education insurance has a premium exemption function, after the insured person's unfortunate death, the insurance premium will be waived and the insurance contract will still be valid. Then, even if there is no late investment, Mr. T lived. With an investment of about 10,000, it is still guaranteed to provide a total of 100,000 funds for education for the baby between 18 and 25, and to provide 50,000 medical expenses for 25 of the major diseases.
One of the great advantages of education insurance is that it has the function of “exemption of premiums”. Once the insured parents suffer misfortune, death or total disability, the insurance company will waive all unpaid premiums and the children can continue to receive protection and funding.
premium exemption function can not replace
Because of the 2.5% predetermined interest rate limit, even with dividends, children's education insurance income is difficult to compare with stocks, funds, etc., some wealth management experts are more inclined to high-yield fund products To be a "substitute" for education savings. However, raising funds for education is of great importance. However, when it comes to children’s education, it is more important to guarantee a certain amount of money. Since most children’s education products have premium exemption, their risk prevention function is not Replacement.