Planning Your Future
Difference between Education Savings and Education Insurance
12 Apr 2021
Difference between Education Savings and Education Insurance
12 Apr 2021

There are several fundamental differences in Education Savings and Education Insurance, including those discussed below:


Education Savings:

1. The interest given is smaller than regular bank savings.

2. The savings result is only about 3-6%, so you should only use it to save education funds in the short term, about 2-5 years.

3. There are administrative fees charged to customers as well as regular bank savings.

4. There is insurance that is covered by the bank, but the amount is small. If you die before maturity, the client's heirs will receive funds equal to the amount of savings targeted at the end of the due date. Suppose you plan to save for 5 years, but for some reason you die when your savings have only been running for 3 years. Then the heirs will get a sum of these savings for 5 years.

5. The level of risk is small.

6. The process is easier.


Education insurance :

1. The results from raising funds can be greater than education savings, because your funds are used as investment products, such as stocks.

2. If you, as the insured, die, the heirs will receive a dependent fund plus the investment return. Suppose you are registered with a 100 million insurance policy, with a savings period of 10 years, but for some reason you died when the savings were only due for 5 years. Then the heirs will get a fund of 100 million plus the investment value managed by the insurance company from the premium you pay each month.

3. This investment is long-term, because you will not get investment returns in the first 5 years, after the first 5 years you will get investment returns.

4. The acquisition costs incurred are relatively large.

5. The risks faced are greater than education savings.

The Right Education Fund Container

If you choose to invest in your child's education since you are still not in school, you should invest in education insurance. Because with a long period of time, you will get searches when your child enters kindergarten, elementary, junior high school, high school, and even college. So if a child enters kindergarten, the funds can be taken, when they enter SD the funds can be taken, and so on depending on the insurance contract period. Premium deposits can also be made every month according to the contract period, and the insurance company can adjust the premium amount according to the ability and period of time that the customer wants.

In addition, education insurance is an insurance product plus investment used to prepare education funds as well as life protection for its customers. So that if the customer dies or is totally disabled, the child will still get the education fund that has been determined, plus reimbursement of hospital fees or compensation if he dies. Investment returns are also given, the amount of which depends on the management of customer funds by the insurance company.


Parents who have many plans are full of challenges, but with BNI Life Solusi Pintar everything becomes easier. Certainty of funds worth 190% of the sum insured. Premium free if there is a risk to the parents. Guaranteed education funds to higher education.

Source: Cermati.com