Children's Education Insurance in Indonesia

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Children's education insurance is a protection program for future education expenses of children and families. By implementing children's education insurance, then our children's education fund will be assured, if done with proper calculations. Cost of education every year increased significantly. It is rarely the parents are aware of the increase.

As parents are dear to her son's future, working hard tirelessly to meet the children's education fund up to university level. This is done to guarantee a better life for the children we love. But. Is it possible?

With income increase is only 4-6% / year, while the cost of education increase by 10-30% / year. For such cases, we must set aside the education of children at the age of the child is still early and invest in the appropriate instrument.

Let us learn to calculate how much the cost of education of children from Kindergarten through college.

Kindergarten

Suppose your child is now 2 years old. And will enter kindergarten at the age of 5 years. Then the next 3 years the child enters kindergarten. The average cost of education from kindergarten to completion of Rp 20 million (depending on the quality of kindergarten). 

Then the cost of the required 3 years (with an increase of 15% / year) future Rp 30 million (could use a financial calculator). For that money should save each month is Rp 30 million / 3 years: USD 10 million / year or Rp 830,000 / month.

Elementary School

Little one is now 2 years old and entered the primary school at the age of 7 years. The average expenditure of public school elementary school education only books and transportation purposes. For the average private school costs until completion of elementary school (grades 1-6) amounting to Rp30 million.

Then the cost of the required 5 years (with an increase of 15% / year) future Rp 60 million (could use a financial calculator). For that money should save each month is Rp 60 million / 5 years: USD 12 million / year or $ 1 million / month.

Junior High School

Little one is now 2 years old and entered junior high school at the age of 13 years. The average expenditure of junior high school education public schools only books and transportation purposes. For the average private school costs to complete secondary school (grades 1-3) amounting to Rp20 million.

Then the cost of the required 11 years (with an increase of 15% / year) future Rp 93 million (could use a financial calculator). For that money should save each month is Rp 93 million / 11 years: USD 8.4 million / year or Rp 700,000 / month.

Primary School

Little one is now 2 years old and entered high school principal at the age of 16 years. The average expenditure of general secondary school education public schools only books and transportation purposes. For the average private school costs to complete high school (grades 1-3) amounting to Rp50 million.

Then the cost of the required 14 years (with an increase of 15% / year) future of Rp353 million (could use a financial calculator). For that money should save each month is Rp 353 million / 14tahun: USD 25 million / year or Rp 2.1 million / month.

College

Little one is now 2 years old and entered high school principal at the age of 19 years. The average expenditure of private tuition until completion (years 1-4) amounting to Rp 120 million. This fee depends majors captured and taken college.

Then the cost of the required 17 years (with an increase of 20% / year) coming from Rp 2.6 billion (could use a financial calculator). For that money should save each month to Rp 2.6 billion / 17 years: USD 153 million / year or Rp 13 million / month. For the above calculation of the entry fee education till completion of education.

The cost is very high proficiency level if you are using BANK as an instrument to prepare the children's education fund, as we all know that interest is only 1.5% / year. While the rising cost of education reaches 15% / year.

And the best way to realize that all of the children's education insurance, in addition to high investment (up to 15% / year) there is a protection facility for the elderly. Education is a long-term investment, therefore we need to adjust the long-term need to start education insurance.

Posted by eddy