In layman's terms, an education fund is a sum of money that parents force their children to save. Regardless of whether the parents are still around the children in the future, this money will provide an economic guarantee for all stages of children's growth. The reasons for purchasing the education grant are as follows:

1, deposit risk

The risk is coming. Children need money for education. What if there is no savings? Therefore, the purchase of education funds is to avoid this situation, because education funds often play the role of compulsory savings.

2. Investment risk

Education grant is an investment tool that can give consideration to both benefits and risks. Although the income will not be high, the advantage is that it is stable enough to play a role in ensuring the bottom. With the education fund, at least there will be no problem of being unable to bear the children's education expenses and great economic losses because of investment failure.

3. Income risk

It has always been emphasized that the greatest protection for children is parents. Some diseases and accidents are uncontrollable. Once the family's economic pillar falls, the family lacks the main source of income. However, children's education funding is a rigid demand. If children have education funds, education will not be a big problem.

What is an education grant?

Education subsidy is actually a sum of money that parents force their children to save, and it will be distributed in batches at the stage when children have educational needs, such as their college stage (18-22 years old).

The biggest feature of education grant is guarantee rather than profit. There are stable and guaranteed returns, but not high.

The main function of education fund is compulsory saving, but its compulsory saving also corresponds to a big shortcoming, that is, poor liquidity. It usually takes ten or twenty years to pay back the money. If you are seriously ill and have an emergency, you can't take it out, otherwise you will lose a lot.

Therefore, we have always stressed that the education subsidy should be considered when the basic family security has been allocated and there are long-term idle funds.

Using annuity insurance to prepare education fund, the principal is safe and the income is stable and clear.

It can be used not only for education, but also for various large expenses such as starting a business and getting married as an adult, and even as a supplement to some pensions. However, there are various financial risks in the market, and it is easy to be picky.