View source for Educational fund

'''Educational fund''' is one of a few parts included in life [[insurance]] policy. Insurance [[company]] agrees to pay specified amount of educational fund and other benefits as a supply for child [[education]] '''once parent''', who was responsible for earning [[money]] for family, '''dies'''. This conrtact provide a possibility to fair '''[[knowledge]] gain''' and '''continuous education''' for family's breadwinner child<ref>M. J. Worth 2002, 3</ref><ref>C. S. Clauss-Ehlers & C. R. Wibrowski 2007, 326</ref>.

==Life insurance ideology==
Educational fund is all based on life insurance policy, which can be both '''term life insurance''' or '''permanent life insurance'''. Life insurance is a [[method]] to coverage family's basic expenses in writing contract with a specific insurance company. Insured person agrees to pay some premium amounts over time to provide special benefits in case that insured may passed away. '''It is necessary''' to choose specific and named beneficiary, who would get that money in terms of life insurance policy by realising the will of insured<ref>M. J. Worth 2002, 3</ref><ref>E. W.Patterson 1919, 198</ref>. 

Basic ideology is of educational fund is to provide enough money, named as an educational fund, to '''cover all of expenses''' that must be covered to give [[window of opportunity]] to continue [[process]] of getting knowledge and education on college. This amount of money is '''tax-free''' in terms of life insurance policy<ref>C. S. Clauss-Ehlers & C. R. Wibrowski 2007, 326</ref>. There can be some additional points in contract, which may be defined as '''exclusionary conditions''' and it causes that providing money can be prevented. 
These may be statuated for example as:
* The specific cause of death (suicide, war),
* Death of insured occurs within specific time (within two years since policy have been contracted).
But in case all necessary points are covered, '''beneficiary is able to get money''' or '''even borrow''' a money from insurance company without paying taxes<ref>B. D. Bernheim 1991, 920</ref><ref>E. W.Patterson 1919, 198</ref>.

==Footnotes==
<references/>

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==References==
* Beck, T., & Webb, I. (2003). ''[https://openknowledge.worldbank.org/bitstream/handle/10986/17169/773990JRN020030ts0of0Life0Insurance.pdf%3Bjsessionid%3DCB91A35FF7B64D2237F507DABF78970B?sequence%3D1 Economic, demographic, and institutional determinants of life insurance consumption across countries.]'' . "The [[World Bank]] Economic Review”, 17(1), 51-88.
* Bernheim, B. D. (1991). ''[https://www.nber.org/papers/w2942.pdf How strong are bequest motives? Evidence based on estimates of the demand for life insurance and annuities.]'' “Journal of political Economy”, 99(5), 899-927.
* Clauss-Ehlers, C. S., & Wibrowski, C. R. (2007). ''[https://files.eric.ed.gov/fulltext/ED380025.pdf Building educational resilience and social support: The effects of the educational opportunity fund program among first-and second-generation college students.]'' . “Journal of College Student Development”, 48(5), 574-584.
* Cummins, J. D., Tennyson, S., & Weiss, M. A. (1999). ''Consolidation and [[efficiency]] in the US life insurance [[industry]].'' . “Journal of banking & Finance”, 23(2-4), 325-357.
* Patterson, E. W. (1919). ''Delivery of a Life-Insurance Policy''. "Harv. L. Rev.", 33, 198.
* Richard, S. F. (1975). ''[https://pdfs.semanticscholar.org/23a1/ff84007c2598c39282c503d1831dd1f7e46d.pdf Optimal consumption, portfolio and life insurance rules for an uncertain lived individual in a continuous time model.]'' . "Journal of Financial [[Economics]]", 2(2), 187-203.
* Worth, M. J. (Ed.). (2002). ''New strategies for educational fund raising'', Greenwood Publishing Group, Westport, 3-6.

[[Category:Financial management]]
{{a|Krystian Prorok}}