Difference Between Education Grant Insurance and Education Savings

There is an age limit for education savings, and you can't buy them until the fourth grade of elementary school.

Unless a bank or insurance company fails, education insurance is as risk-free as "education savings".

There are two discounts for "education savings" at the bank:

That. 1. Tax exemption: Exemption from interest tax.

That. 2. Preferential interest rate: One-year and three-year education savings will be calculated according to the interest rate of the same grade of lump sum fixed savings deposit in the same period on the date of account opening; The interest rate of the six-year term is calculated according to the interest rate of the five-year lump sum deposit on the account opening date.

The difference between "education savings" in a bank and buying education insurance in an insurance company is mainly manifested in the following aspects:

1. "Education Savings" is subject to a number of restrictions:

1. Quota limit: Education savings can only enjoy a tax exemption and interest rate concession of 20,000 yuan at the middle school (full-time high school), university (junior college) and graduate school levels, that is, each person can enjoy a maximum of three discounts, with a maximum limit of 60,000 yuan.

On the other hand, there is no limit to the amount of education insurance, and you can buy as much as you want.

2. Educational restrictions: If the child does not go to university, he can only enjoy the preferential policies provided by the "education savings" once, and if the children do not go to graduate school, he can only enjoy the preferential policies provided by the "education savings" twice.

If you buy education insurance, you can receive education money and dividends as long as your child reaches the appropriate age: 16-25 years old, or 16-30 years old, and it is not required that the child must have the corresponding academic qualifications. Education grants and bonuses are also tax-exempt.

3. Restrictions on savings methods: "Education savings" can only take one-year, three-year, and six-year fixed savings deposits. You can't deposit 20,000 yuan at one time (otherwise you won't enjoy preferential policies).

When buying education insurance, the insurance premiums can be paid annually, quarterly, monthly, or all the insurance premiums can be paid at one time, from the birth of the child to the age of 17.

4. Inelasticity of interest rate: "Education savings" will still be calculated according to the interest rate on the date of account opening when the interest rate is adjusted during the deposit period

If there is a dividend in the education fund insurance, the education fund dividend can avoid the risk of the bank interest rate reduction (the insurance company can use more funds to buy valuable ** and deposit less funds in the bank); Conversely, if the bank interest rate is raised, the education bonus will also increase.

2. Education insurance can be "reinsured":

It is possible to attach a "waiver of premium" clause to education insurance insurance, namely:

If the insured person (i.e. the child's father or mother) dies or becomes totally disabled before the start of receiving the education allowance, the insurance premium for subsequent installments can be waived and the child will be deemed to have paid the premium, and the child will receive the education fund and dividends in full at the end of the period.

Extended reading: [Insurance] How to buy, which one is better, teach you to avoid these insurance"pits"

Education Insurance:It is also called education fund or education insurance, itIt is an insurance product that provides a certain amount of education funds for children at different stages of education. Parents can insure their children when they are infants, and choose a period with higher education costs to start receiving them, such as high school, college, graduate school, etc., and they can receive education funds from insurance companies every year, and use this money to protect their children's education expenses.

The main function is to provide children with high school education funds, college education funds, entrepreneurship funds, wedding funds, etc.

Education Savings:It refers to the special savings that individuals open accounts in designated banks in accordance with the relevant provisions of the state, deposit a specified amount of funds, and use them for educational purposes, and are a kind of special savings that pay for the education funds required for non-compulsory education for students. When opening an account, the depositor must open a deposit account in the name of the depositor (student) with his or her (student) account booklet or ID card.

When withdrawing at maturity, the depositor needs to withdraw the principal and interest at one time with the passbook and relevant certificates. Annuity insurance product information.

Other insurance questions can be consulted.

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1. Premium waiver. Because of the long insurance period, if the insured parent unfortunately loses the ability to continue the insurance during this period, such as accidental death, disability, etc., the remaining premium can be waived, and the child can continue to be protected by the insurance company.

2. Save money regularly. The policyholder must deposit the agreed amount on time every year, and if it is withdrawn early or the payment is broken, it will affect the child's education plan.

3. Guarantee function. Similar to the premium waiver, once the policyholder loses the ability to pay due to accidental death or other circumstances, the rights and interests of the child remain unchanged.

To put it simply, when the child is very young, the parents consider the future education expenses, so they regularly save a sum of money, so that they can withdraw a sum of money regularly in the future education stage. Although it is called education money, in fact, the insurance company does not restrict the use of the refund, you can use it for your children's education, going abroad, buying a house, and getting married. The interest rate of education is relatively high, generally above 3%, and the cash flow can be planned according to the cycle of the child's schooling, and it is relatively stable.

Such an education insurance can give children a stable and safe asset as a back-up.

The benefits of education insurance include: protection for children's education expenses, compulsory savings function, premium waiver function and cultivation of children's financial outlook.

If you haven't prepared an education fund for your child, you can see here: "If you want the best for your child, are you ready for the education fund?" 》

Education money is a kind of annuity insurance, which saves a sum of money for the child to the insurance company at a fixed time, and then receives the money at the appointed time. For more information about the education fund, you can read this article: "If you want to give your child the best, are you ready for the education fund?" 》

Education is a type of annuity insurance, an annuity insurance designed to prepare for a child's future education**. There are many education grants on the market, which ones are worth buying? Please keep this latest list of recommended education grants:

"Evaluation of the 8 Education Funds with the Highest Yield in 2020! 》

We have all heard that no matter how hard you are, you can't be miserable for your children, and no matter how poor you are, you can't be poor in education. It pays to plan ahead for your child's education.

Education funds require people to save and have the characteristics of stable income. The advantage is that it is highly secure, locks in long-term gains for at least twenty years in the future, and is not disturbed by the adverse effects caused by the ups and downs.

Because the education fund is mandatory for savings, and the money cannot be returned within the specified time, it can help us to save a sum of education**, and increase the value smoothly, such as high school, college and marriage, which are very important nodes in the child's life, and can have continuous cash flow income. So generally,The key to choosing an education fund is to look at the flexibility and rate of return。Below I have selected a few representative education funds for comparison:

After the comparison, it is summarized as follows:

1. The highest flexibility: Kangtai Life's universal insurance

National insurance can be added in the payment process, and the payment method can be weekly or monthly, which is very flexible. However, its IRR yield is only ,In these four paragraphs, the level can only be regarded as ordinary.

2. The highest rate of return: Xinmei is up every day

The flexibility of daily upward is not as good as universal insurance, but the yield belongs to the first place among these four. Moreover, the predetermined interest rate of Xinmei Mutual's daily upward education fund is currently the first product in the predetermined interest rate ranking.

In fact, the essence of education pension is annuity insuranceIn addition to the four education annuities I mentioned above, there are actually many cost-effective annuity insurances that can also be considered.

Children's education participating insurance can establish children's education and entrepreneurship as early as possible: Purchasing children's education participating insurance can help parents comprehensively plan all stages of their children's growth, from college to entrepreneurship, provide reasonable financial support for their children's growth, and can also get free protection.

What are the benefits of education** insurance?

1. It can bring certain benefits to the family. Purchasing children's education participating insurance can help parents comprehensively plan all stages of their children's growth, from junior high school to entrepreneurship and even marriage, which can provide reasonable financial support for their children's growth.

2. Children's participating insurance has a large underwriting opportunity and cheap premiums: as long as it is not a congenital disease, you should help children buy participating insurance when they are born or young and healthy, so that they will not be increased, excluded or refused by the insurance company. In addition, the younger you are, the cheaper the premiums you pay and the more cost-effective the life insurance you buy.

3. Transfer of property to children: The insurance payment of life insurance is exempt from various taxes, and the property can be transferred to the name of the children by helping them buy child dividend insurance, which can avoid taxes.

4. Risk transfer to ensure the stability of family life: If you can take out a child dividend insurance for your child in time after the birth of your child, this policy will be the best gift after he becomes an adult for 4 years. Parents can use insurance policies to convey never-ending love and help their children survive every difficult time.

Education is a type of financial insurance, its advantages are:

High security, low risk

Stable returns

However, there are also some drawbacks to the education grant:

Low yields。The maximum predetermined income is 3 4%, and there is not much money earned;

Poor liquidity。You need to pay on time every year, for more than ten years, and you can't take it out easily.

Next, let's talk about the shining points of a good education fund

The predetermined interest rate is higher

The greatest use of education funds is that they can increase the value of our current funds and ensure the children's future education. The higher the predetermined interest rate of the product, the higher the actual rate of return will be。If you want to increase your yield, you can choose to make a lump sum payment early.

Matching education gaps

In times when the cost of education is high, it is necessary to correspond to the time when the education fund can be applied for.

For example, you can choose to pay for education on a short-term basis, so that you can only guarantee that your child will be able to receive money at that time when she goes to college.

With the increasing development of social life, the state is also paying more and more attention to education, and most parents are "hoping that their children will become dragons and daughters will become phoenixes", and the family's education expenses are also increasing. As a result, education insurance with savings and protection functions is becoming more and more popular among the public.

Why education has become a "sweet spot" in the eyes of parents? In fact, the reason for this is that the education fund not only helps to achieve the milestones, but also has the following four additional functions:

The first is compulsory savings, now among the relatively young parents, many are moonshine families, and the compulsory savings function of insurance can prepare for their children's education;

the second is to earmark funds for special purposes, mainly to prevent the funds of children's education funds from being misappropriated for other purposes;

Third, risk aversion, at present, many education funds have the function of premium waiver, which can ensure that children's education plans are not affected when the family economy is interrupted due to accidents;

Fourth, most of the education funds now have a savings function, which can allow the funds in the insurance account to achieve the purpose of maintaining and increasing the value. The time to clearly grasp the direction of the development of education funds is constantly changing, and our demand for education fund products is not static.

In short, there are a variety of education fund products on the market, and it is easy for us to be picky when applying for insurance. You should know that if you lack understanding of insurance products, it is easy for policyholders to choose products that do not match their needs and cannot get the protection they deserve. Therefore, in the process of applying for education insurance, the policyholder should plan as soon as possible, have a correct understanding, and grasp the direction in order to choose the right insurance for the child.

Many parents buy education insurance for their children, should they buy it? Take you to understand the advantages and disadvantages of education funds.

The education insurance money is to prepare for the child's education expenses, so its function is also very targeted, and the profile of the dad is as follows:

Fosun Prudential Xinxing Baby Education Fund Evaluation, How to Buy Education Fund?

1. Guarantee children's education expenses.

This is the core function of education insurance, and it is also the original intention of many parents to take out insurance.

Children are the pearl of every parent's palm, parents are looking forward to their sons becoming Jackie Chan and their daughters becoming phoenixes, and the process of becoming a phoenix is to receive education.

Nowadays, there is a shortage of high-quality educational resources, and parents want to send their children to key primary schools, key middle schools and key universities, and the education expenses required in this process are a large expenditure.

Therefore, according to your own expectations for your child, the allocation of education insurance in advance can provide a strong financial support for your child's future learning process.

2. Compulsory savings function.

Young friends, it is easy to make money, and it is always difficult to resist the urge to spend. Therefore, by configuring an education insurance policy for your child in advance, you can make a mandatory savings for cash flow and ensure that there is a special education fund available when your child goes to school in the future.

A few years later, when the child wants to enroll in a study class, we can also calmly come up with a sum of money.

3. Premium waiver function.

This function means that when the policyholder, i.e. the parents, unfortunately passes away, is totally disabled or suffers from a critical illness, the subsequent unpaid premiums can be waived.

Parents don't have to worry about the lack of protection for their children's future education funds if the subsequent premiums are not paid at all, and the original policy is still valid and unaffected after the insurance company waives the premiums.

Therefore, from this aspect, the education fund protection provided by education insurance for children is more thoughtful.

4. Cultivate children's financial management concept.

You can negotiate with your child and use your child's New Year's money to pay for education insurance, which can vividly convey to your child the financial management concept of planting beans and getting melons and taking precautions.

In this way, we can cultivate children's savings and financial management awareness, and establish a correct financial management concept for children from an early age.