1

3 Best Education Savings Plan in Singapore

To most parent or future parents, one of the immediate concerns of having kids is the cost it takes to support them. Out of all the main cost the parents must bear, the one that tops it all is the cost of tertiary education.

In Singapore, we have one of the most effective and lucrative education systems in the world, and for your kids to be able to meet their life’s potential via a prospect of a degree, the last thing we want is to hold them back due to our own financial in-capabilities. Here is a look at how much tuition fee per annum we may have to bear depending how capable is the academic capacity of your child and where you intend to place them in

best education savings plan

(Source nus.edu.sg)

As of 2019, the fees for a subsidised top local university is about $20,000 p.a. for a business degree. Hence for a 3 years course, it will be $60,000 excluding accommodation and living expenses

Bearing in mind inflation of 2.5% p.a., if your child was only born this year, you will have to factor in an increase of about 50 – 60% by the time he/she is ripe for Uni.

There are a few ways we can go about to save for our child’s education. The safest and the least committed way will be to chuck aside a lump sum or monthly amount into your local bank’s savings account. However, the meagre interest rate that you will receive might mean that the value of your savings will likely erode overtime due to inflation (taking inflation @ 2.5% p.a.). The lack of a forced savings system may impede the discipline to save as well.

The alternative way will be the creation of a forced education savings plan for your child. While acknowledging the fact that starting an education savings plan is a long-term commitment and any stoppage and termination could result in a huge financial loss, based on our research and understanding, an education plan might be the best safety net to financially prepare your child for his/her education endeavours. Here we identify 3 insurers backed education plan that may fit into your financial objective.

Best Education Savings Plan For Cash Payout

Manulife Educate

best education savings plan

Benefits
  • Payout Structure – Enjoy 2 yearly Guaranteed Cash Benefits before the chosen Payout Age, and 4 yearly Guaranteed Cash Benefits from the chosen Payout Age onwards
  • Coverage – Your child is covered against death and terminal illness
  • Optional Riders for Payor – Payor Premium Waiver Rider (I) and Cancer Care Premium Waiver Rider (I)
  • Choice of payout – Choose between the Payout Age of 18 or 20
  • Underwriting – Guaranteed issuance if no optional riders are selected
  • Principal Guaranteed – Principal and interests are guaranteed upon maturity
What we don’t like
  • Only one selectable premium term of 10 years allowed
  • Other than death and terminal illness, other variation of riders are not available on the child’s life
Best Education Savings Plan For COVERAGE

NTUC VivoChild

best education savings plan singapore

Benefits
  • Payout Structure – Enjoy 2 yearly Guaranteed Cash Benefits before the chosen Payout Age, and 4 yearly Guaranteed Cash Benefits from the chosen Payout Age onwards
  • Coverage – Your child is covered against Death, Disability, Terminal Illness and Daily hospitalisation benefits for child diagnosed with Dengue, HFMD and food poisoning
  • Optional Riders – Payor Premium Waiver, Enhanced Payor Premium Waiver, Dread disease premium waiver, Early cancer waiver
  • Choice of payout – 5 to 6 tranches of guaranteed cash disbursement depending on age applied for plus a lump sum at the end of policy term.
  • Payment Term – 5 years, 10 years or pay till 2 years before end of policy term
  • Underwriting – Full medical underwriting
What we don’t like
  • Full medical underwriting is required
  • Depending on the entry age, the principal may not be guaranteed upon maturity
Best Education Savings Plan For Guaranteed Interest and Flexibility of use

AXA Early Saver Plus

best education savings plan axa early saver

Benefits
  • Payout Structure – Enjoy 2 yearly Guaranteed Cash Benefits of 40% sum assured 2 years prior to the policy maturity, choose your maturity anytime between 10 – 25th policy year
  • Coverage – Your child is covered against Death, Disability, Terminal Illness, Additional Death Benefit due to accident and outpatient medical expense of $200 per claim
  • Optional Riders – Premium Waiver upon Death/TPD/CI of payor and CI/TPD of life assured
  • Choice of payout – 2 yearly cash payout, optional to reinvest 3 years before the maturity term.
  • Payment Term – 5 or 10-years payment term
  • Flexibility – Entry age limit 0 – 60 years old, the plan can be treated as a typical savings plan either for child education or any other financial goals
  • Underwriting – Guaranteed Issuance without any riders
  • Principal Guaranteed – Principal and interests are guaranteed upon maturity
What we don’t like
  • Only 2 guaranteed cash benefit pay-outs before maturity. Lack of cashback option varieties to cater to pre tertiary education needs.

As we can see, the 3 plans have different payout structure or age limits. AXA Early Saver Plus and Manulife Educate are GIO plans. NTUC VivoChild are full medical underwriting plans with coverage on death and other benefits.

Here is what you can do next to get the best education savings plan.

Get all three insurers quotes for the most competitive plan here !

Our partnered financial planners will draft their proposals based on your given input. Your information and details will only be used for communication with you.

All comparisons done are solely based on your individual needs.

Get Your Education Savings plan quotes here

More Articles

New HDB Lease Rules How Will it Affect You? – Moneyline.SG

Previous article

Keeping Up with the Millennial Fits-po (fitness-inspiration)

Next article

1 Comment

Comments are closed.

You may also like