The education fund is mainly to protect children's education expenses, and the payment period is often long. If you want to give your children high-quality education, the cost is relatively high. Therefore, it is very necessary to allocate education funds to children instead of blindly buying them. So, what is an education grant? What are the functions? Let's get to know each other.

1. What is an education grant?

Education fund insurance belongs to the category of annuity insurance, and its purpose is to prepare education fund for children. From the perspective of the guarantee period, it can be divided into lifelong and non-lifelong children's education fund insurance.

Second, the main functions of the education grant

1, education guarantee function

For most families, education expenses are rigid expenditures. In the future, high school and college are the only way for most children, and there is even a need for further study and study abroad. At these critical time nodes, the burden on parents will increase unprecedentedly, and the pressure on ordinary families will be great. Education grant can help parents to prepare for the future with less financial burden, avoid delaying their children's education because of economic situation, and realize parents' training goals for their children.

2. Insurance premium exemption function

The humanization of the education fund lies in that when the insured cannot continue to pay the insurance premium due to death, disability and other reasons, the insurance company will waive the subsequent insurance premium according to the agreement, but the protection of the children is still effective. In case of unexpected accidents, parents should choose the insurance fee exemption function when allocating educational funds to their children.

3. Other protection functions

With the change of social demand, the protection function of insurance products is constantly improving. At present, there are also some educational gold products on the market that have the function of protecting against illness and death, which can give children more comprehensive protection.

Third, the three characteristics of education grant.

1, forced storage

Like other insurance products, in order to obtain effective protection during the protection period, the insured needs to pay the agreed premium to the insurance company every year. Parents buy education insurance for their children, which means that they must invest in this security plan in the future 10 years or even longer. Therefore, the education fund is mandatory in the capital reserve.

2, "earmarking"

In addition to setting up a special account for children's education, there is an age limit for receiving education funds, which often requires children to enter high school or university to receive them. This feature of the education fund can ensure that the education fund truly guarantees children's education.

3. Long duration and high total cost.

Usually, parents will face the cost of education from their children's age to their twenties and thirties. This means that parents will spend more than 20 years or more on their children's education.

Judging from the cost of education, the university may need about100000 for four years, and more and more people have the intention to take the postgraduate entrance examination and study abroad, so the total cost will be a very huge expenditure. In order to cope with the high education expenditure, the payment time of education funds is often longer and the cost is relatively higher. Parents need to make long-term fund planning and preparation.