Education Savings Plan
An education plan is the best gift your child can receive from you as they become a young adult. Ensure this gift is secured and safely invested so they can maximize their academic endeavors.
An education plan is the best gift your child can receive from you as they become a young adult. Ensure this gift is secured and safely invested so they can maximize their academic endeavors.
Your biggest insurance for your child is their education, kick start a financial program to save for their educational needs.
As we provide quotations from various insurers, do leave us your details below for a Licensed FA representative to provide you with the best plan that suits your needs
Answer 3 Specific Education Plan Preference for us to Customize Your Quote.
These are participating endowment policies that are structured to provide a regular interval pay out to finance your child tertiary education years.
Depending on your child’s ability and your preference, here is the current estimated cost for your child’s education needs (If you’re using mobile to view, tilt sideways to see the full table)
| Tuition Fee Comparison Among Top Universities |
Tuition Fees (Annual) | Annual Estimated Accomodation / Living Cost (on-campus) | Total Cost of Candidature (Tuition Fees & Cost of Living) | ||
|---|---|---|---|---|---|
| Arts / Architecture / Law | Business / Accountancy | Engineering / Science / Computing | |||
| National University of Singapore |
S$29,350 – S$38,450 | S$31,800 | S$37,500 – S$37,550 | S$10,386 | S$39,736 – S$48,836 |
| National University of Singapore (With MOE Tuition Grant Subsidy, carrying a 3-year bond) |
S$17,100 – S$18,500 | S$20,100 | S$17,100 – S$18,950 | S$10,386 | S$27,486 – S$30,486 |
| Australia Universities |
S$34,135 – S$45,398 | S$37,851 – S$40,108 | S$37,851 – S$43,866 | S$18,987 | S$53,122 – S$64,385 |
| Hong Kong Universities |
S$21,121 – S$25,693 | S$21,121 – S$25,693 | S$21,121 – S$25,693 | S$14,236 | S$35,357 – S$39,929 |
| UK Universities | S$33,186 – S$41,657 | S$33,186 – S$45,848 | S$45,848 – S$55,068 | S$16,463 | S$49,649 – S$71,531 |
| US Universities | S$56,086 – S$66,134 | S$56,086 – S$66,134 | S$56,086 – S$66,134 | S$35,283 | S$91,369 – S$101,417 |
(Source NUS.EDU.SG)
Base on this table, we can see that for a 3 years business degree in NUS with MOE Subsidy will still cost around $60,000 without setting aside cost of accommodation. A typical overseas degree should cost around the range of $200,000 – $400,000 over the whole course of the program including accommodation needs.
If you are looking to plan 20 years ahead, you should factor in the average Singapore inflation rate of 2 to 2.5% p.a. By doing so, you should have worked out a 40% to 50% increase from the current cost in the next 20 years
A typical return on an education savings plan in Singapore should provide an estimated 2 – 4% p.a. average return, however, these figures typically base on a standard projection provided by the insurance companies.
Different insurer offer unique protection features for the child which can be one of the many reasons to buy an education savings plan. Some insurers provide medical or child accident benefit and most insurers will provide a basic death and disability benefit.
Unlike a typical endowment policy, funds, stocks and shares are not principal guaranteed, you may get a more favorable return but you may also face the risk of losing your hard earned savings catered to your child’s educational needs.
You should look out for the effective interest rate, guaranteed and non-guaranteed. You should also take note of the pay out structure of the plans, some plans provide pay out when the child is 16, 17, 18, 20, and 21 years old follow by a lump sum at age 22. Some plans only pay lump sums in the last 3 years of the plan.
Most plan are structured to cater to either male or female child as they factor in the 2 years compulsory national service that your male child has to undergo before the beginning of his tertiary education.
Comments are closed.
7 Comments