Stating that education insurance, which covers the entire education period starting from kindergarten to the end of university education, ensures that the education of their children is not interrupted against the risks that parents may encounter throughout their lives, Özcan said that the main coverage of this product is death, but the policy can be turned into a complete protection shield with optional additional coverage such as disability, involuntary unemployment, critical illnesses.
One of the biggest concerns of parents is to ensure that their children receive an uninterrupted education. The Education Insurance product, which has been offered by insurance companies in Turkey for about 10 years, is a user-friendly policy that minimises these concerns of parents with its coverage and packages designed for every budget.
Abdullah Özcan, CEO of Steel Insurance and Reinsurance Brokerage, pointed out that education insurance is one of the most innovative and valuable insurance products in terms of the contribution it offers, yet the number of policyholders is approximately 400 thousand. Stating that education insurance ensures that parents can continue their children's education uninterruptedly against any adverse events that may happen to them, Mr. Özcan said, "With the education insurance that covers the education of the child, it is ensured that the amount required for the student to complete the remaining education after the death of the parent as a result of an accident or a permanent disability is paid. Therefore, do not leave your child's future without insurance."
Noting that parents who have an education insurance policy offered by many companies today are no longer worried about the future of their children, Özcan continued his words as follows:
"All parents between the ages of 18-65 can benefit from this product. The insured decides on the coverage amount according to the annual education expenses, expectations and the duration of the insurance. In education insurance, since the student's education expenses will decrease year by year, the coverage of the policy decreases accordingly. For example, assuming that the student's annual education expenses are 60 thousand liras and that there is a 10-year education period, the insurance coverage for the first year is calculated as 600 thousand liras. Starting from the second year, this coverage decreases by an equal amount every year."
Noting that the main coverage of education insurance is death, but additional coverage such as disability, involuntary unemployment, critical illnesses can be optionally included in the policy, Özcan said, "Life insurance for educational purposes is basically a financial instrument to provide the amount to cover the educational expenses of children. For this reason, many insurance companies can expand the guarantees they provide within the scope of education insurance depending on the demand of the insured. The policy may include different coverage such as support salary, total disability, lump sum payment. The insured can also purchase a policy indexed to foreign currency."
Stating that the duration of the insurance policy can be determined between 2 years and 20 years, Özcan noted that the premium to be paid varies depending on age, coverage amount and insurance duration. Özcan stated that premiums can be paid in one lump sum or in instalments to be distributed equally over the insurance period.
Provides a significant tax advantage
Pointing out that the premiums paid by the insured for their children under the age of 18 can also be deducted from tax at certain rates, Abdullah Özcan said, "There is an important tax exemption advantage. If you are a salaried employee, you can benefit from the tax deduction advantage provided that it does not exceed 15 percent of the monthly gross wage and the total amount of the annual gross minimum wage; if you are self-employed, you can also benefit from the tax deduction advantage provided that it does not exceed 15 percent of the annual declared income and the total amount of the annual gross minimum wage.