Which is the best insurance for my baby?

Question

i want to make arrangement for his education

Answer 1

You have multiple options.  529's, Coverdal's, and UGMA/UTMA's.  Which one you choose is based on what you want to use it for.

If you want the option to use the money for elementary/middle/high school expenses as well as college, a Coverdal is the only option of the 4.  If you just want to pay for College and major medical expenses, a 529 is a good option.  If you want to cover major medical and give your child the option of using it for something other than education (in case they decide not to go), than an UGMA/UTMA are good options.

Talk with a financial coach in your area to help make this decision.

Answer 2

You do not want to arrange for education through insurance unless you plan on dying before your baby reaches college age.  You should be looking for an investment account.  There are two different options designed specifically for education.

The first is a Coverdell ESA also called an education IRA.  This allows for tax free withdrawal of all earnings when it is used to pay for education.

The second is a 529 plan that is run by states or educational institutions.  They allow you to prepay for all or part of your child's education now, rather than when our child is of age.  The plans vary from state to state, but they generally allow you to pay for college at today's rate instead of the rate 18 years down the road.  Many are transferable, meaning: If you set up the plan through a particular University, your child will be able to go to a different University while retaining the benefit.

Good Luck!