Investing in our children’s future is the cornerstone in preparing them to become successful and prominent members in their society or community. Education planning is one such activity to equip our children with main success pillar
An education savings plan is designed to help you plan for the cost of higher education by guaranteeing the growth of your contributions over the years. All you need to do is tell us how much you want to target for your child’s education and we will provide you with the plan that will best facilitate your goals. The required amounts from your plan will then be paid out over a 3, 4 or 5 year period based on your education fees requirements.
Contributions can be made regularly on a monthly, quarterly, semiannual or annual basis as well as in the form of single payment. It is imperative to note that the earlier you start saving toward your future goal the lesser the contribution amount that you are required to make.
Example
Scenario 1: You are 35 years old and have a new-born child. You are hoping to send your child to university at 17 years old and want to ensure a sum of $25,000 per annum over five years to cover education fees. In this case a Capital Guaranteed Savings plan could well be a good solution.
COLLEGE ENTRY AGE - 17 Years | ||||
Contribution Period | Plan Tenor | Desired college Entry Age | Required Contribution | Guaranteed College fee per annum (paid out for 5 years)* |
Annual regular premium | 17 | 17 | $6,414 | $25,000 |
Scenario 2: You are looking to get some returns as in Example 1 above, but you didn’t start planning for your child’s education until he was seven years old, therefore, a higher contribution will be needed to meet the same objective as in Example 1 above. We’ll assume once again that are 35 years old at the time you take out the plan.
COLLEGE ENTRY AGE - 17 Years | ||||
Contribution Period | Plan Tenor | Desired college Entry Age | Required Contribution | Guaranteed College fee per annum (paid out for 5 years)* |
Annual regular premium | 10 | 17 | $11,506 | $25,000 |
*The indicative average net investment composite yield generated by the strategy above was taken at an assumed growth rate of 4.00% p.a.