As it is said, almost everything that has an advantage must have a corresponding disadvantage. In the end, it is the degree of advantages to disadvantages that most time influences our decisions.
Many reviews from UK.collected.reviews suggest that education insurance policy is good, in fact, it is one of the best education plans out there, but when properly examined, there are some disadvantages embedded in it. Every financial advisor knows that insurance is critical in any long term personal financial plan, but it is not the best investment tool you can find out there.
The main use of education insurance is to provide security for the future of your child in case you are incapable of seeing them through higher education. Many experts have argued that personal savings for your child can be more beneficial for their education compared to education insurance. Since the average return on education insurance is very low, and it can be less significant than it seems when analysed on a grander scale, maybe it is not the best option out there.
When being offered a new product or investment plan, it is not usually all glittering, it is only a normal fact of life that you experience some dark sides. This is not to say that the disadvantages of child education insurance outweigh the advantages, but rather bring another point of view into the argument for better, clearer and realistic expectations when making decisions. There are some blurry sides of education insurance that need to be talked about, although these problems may not only be exclusive to child education insurance, they must be discussed.
Some of the points include:
Stressful and Prolonged Procedures
The various formalities carried out by the insurance company can be so hectic that it can likely make child education insurance a disadvantage. Although choosing the right company can reduce this problem to a large extent, people generally complain about the formalities that are involved in setting up a child education insurance plan, and more importantly when trying to get the benefits. Especially in cases of transfer of beneficiaries, the process sometimes becomes too prolonged and stressful that people start to make irrational decisions. This problem is to be considered before making any decision about child education insurance.
Complex Terms, Conditions and Agreements
Another problem is that tricky terms and conditions can be encountered when setting up education insurance. These conditions can be written such that they can be subjected to different interpretations depending on the level of mastery of language. That is why it is generally advised to show the content of the terms, conditions and agreement to your lawyer for further scrutiny before signing. This may come off as a problem and make child education insurance plans come off as a disadvantage.
There are many advantages of a child education insurance plan; such as access to minor withdrawals, support and security for your child, etc., but there are naturally occurring disadvantages that come with this insurance plan and some human factors that if not properly managed, can also come off as disadvantages of child education insurance.