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3 Best Education Savings Plan in Singapore (Updated Jul 2021)

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

This article is for general information only it is not an advise nor does it take into account the specific investment objectives, financial situation or needs of any particular person. Read our General Disclaimer

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 with flexible withdrawal Option & retrenchment benefits

Manulife ReadyBuilder II

best education savings plan

Benefits
  • Payout Structure – Access to cash value & withdraw your money whenever you need it to fund key milestones in your life, can be structured to include other purposes such as legacy planning.
  • Benefits – Enjoy Retrenchment benefit payout 50% of Regular premium and 12.5% of Single Premium
  • Benefits – Enjoy Premium Freeze Option for 1 year
  • Benefits – Appoint a Secondary life assured to pass on the accumulation to your loved ones
  • Payment Term – Single Premium, 5,10,15,20 years
  • Choice of payout – lump sum or partial withdrawal is allowed as long as there is cash value
  • Underwriting – Guaranteed issuance if no optional riders are selected
  • Principal Guaranteed – Principal and interests are guaranteed from 15th policy year
What we don’t like
  • Other than death, terminal illness and total permanent disability, other variation of riders are not available on the child’s life
Best Education Savings Plan For flexible maturity date

Aviva MyChoiceSaver

best education savings plan

Benefits
  • Payout Structure – Choose to withdraw a lump sum from the 10th – 25th year or at age 99 and can be structured as a legacy plan
  • Benefits – Receive Additional 100% Sum Assured in the event of Accidental Death of Life Assured
  • Benefits – Enjoy Interest Waiver for up to 12 months if retrenched or unemployed
  • Benefits – Appoint a Secondary life assured to pass on the accumulation to your loved ones
  • Payment Term – 5, 10, 12, 15, 18, 20 or 25 years
  • Choice of payout – lump sum payout upon maturity, can be structured as a flexible maturity plan with maturity at age 99
  • Underwriting – Guaranteed issuance if no optional riders are selected
  • Principal Guaranteed – Principal and interests are guaranteed at maturity
  • Riders – Easy Term, Payer Waiver Rider & CI Premium Waiver
What we don’t like
  • No partial withdrawal allowed, only full surrender or draw out lump sum at maturity
  • Retrenchment/Unemployed benefits are weak
Best Education Savings Plan with Shortest Maturity term @ 8th year

China Taiping i Saver 8

best education savings plan

Benefits
  • Payout Structure – Policy matures on the 8th year with Principal Guaranteed + Non Guaranteed Bonuses
  • Benefits – the 8th year maturity is the main benefit, really there’s nothing else in the market to compare with, it’s the shortest RP endowment.
  • Payment Term – 2 years only (Option to do lump sum)
  • Choice of payout – lump sum on the 8th policy term
  • Underwriting – Guaranteed issuance if no optional riders are selected
  • Principal Guaranteed – Principal and interests are guaranteed at maturity
What we don’t like
  • Simple plan, no other option for policy payout term

As we can see, the 3 plans have different payout structure and benefit, we hope you can make a good decision with these write ups. The plans we choose has a reasonable timeframe that provides principal guarantee which is rare in endowment plans after the 1st July 2021 par plan projection repricing.

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 !

A Licensed financial planner 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

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