Select Insurance Education, or Education Savings?

Likened, you and your wife are a young couple, earning only $ 900 a month and already have a child are 1.5 - 2 years. Well, where should you choose, insurance or savings? If possible can only be saved, how much money should you save each month?

Actually the same. Insurance education or education savings accounts have the same characteristics. In addition to its investment decision can be customized with your child's school schedule, they both provide protection functions. That is, the availability of funding your children's education will remain secure despite the risk of death happen to you

In particular, education insurance is insurance that offers two utility (endowment), the function of protection and investment. Protection function will cover the risk of death over you, by promising a certain amount of money if you are experiencing death. However, the sum insured is given it is usually adjusted for the cost of your child's education and has been agreed upon in the policy.

As an investment, this insurance will manage and invest some of the premium you pay. Instead of managing your money, the insurance company will provide the funds which amount has been agreed in the policy. When payment was already scheduled, it is to fit the time your child's school.

Meanwhile, education savings accounts are savings from the bank. This product has characteristics similar to insurance education. With this type of savings, you will save a certain amount of money regularly.

The amount of monthly savings were calculated from the education fund that will target you take, some day. And to ensure the availability of education funds, the bank has worked with several insurance companies that will guarantee your deposit even if there is a risk of death.

Instead, the money you'll need to set aside a monthly savings associated with the size you need in the future. To fund your children's education, for example. You must first calculate the amount of funds you need, and time of use.

After that, calculate the amount of money that you need savings. As for reserve funds, you also have to prepare other savings to the amount of approximately a multiple of between 5 to 15 times your salary.

Presumably, not the ban to save money for young couples on low incomes. However we recommend you do not have too force myself to have as soon as possible the education fund and reserve fund. Make arrangements for your money appropriately. As a result, set aside money by saving money can still be achieved without sacrificing other interests at this time.