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Life insurance policies for your children’s education: what to think

I’m not very publicized, but there are life insurance policies that allow a regular sum of money for their children from the earliest years of life, to develop a capital to be used for college tuition, for the payment of a master’s degree or to start working. Depending on the products, the duration of the policy can range from 5 to 25 years. Usually, in case of death of the subscriber (parent, grandparent, uncle, etc…) the beneficiary shall be exempt from the payment of premiums residues, while he is guaranteed an agreed capital under the contract.

Life insurance policies for their children's education

Life insurance policies for their children’s education

In the event that you normally arrive at maturity of the policy, you can choose between a paid- up capital (which is guaranteed – and with an average appreciation of about 2 % ) in a lump sum or an annuity or in some cases in temporary a paid- up capital of  5 annual installments .

What do you think of this type of insurance policy life insurance? It offers a good parachute pension and investment as it is cutting easier to manage than the purchase of shares, bonds, postal or whatever. The problem is the boots, or the costs of the policy at the time, the products on the market can go from 3 % to 13.8 % of the premium paid – and the latter is a percentage that is truly exorbitant . In some cases, although the paid -up capital of piecemeal implies other charges. No surprise, though since everything is written in the information packages of policies, which should be read carefully by the customer before the contract is signed.

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