This is a discussion on Is it necessary to sign up Insurance to save for Education within the Financial Asessment and Planning forum, part of the Home Planning Forum category; Anyone sign up Insurance for saving up for baby's Education? Other then sign up, is there any other ways to ...
Anyone sign up Insurance for saving up for baby's Education?
Other then sign up, is there any other ways to save up? How much is needed to go study up to university?
For me i didnt take up for saving for education but hospital ones we got buy~
i signed up an insurance savings for baby's education coz i think its good savings habit to start early...she can have the money when she's 20...also took up hospital n accident plans...
according to a magazine, you need to save up $841 a month for ten yrs if you want your baby to study overseas like in australia....i'm hoping my baby will study in spore so cheaper so i intend to save $500 a month for her....
i have a very old article from 2004 that says that the average cost of education annually is around $13,500. Based on that:
4 yr course = 4 x $13,500 = $54,000
After inflation of 2% = $80,000 in 20 yrs time.
That works out to about $3500 savings per year for 20yrs.
using insurance to save gives discipline, gives better interest than bank sometimes, and some have riders that say in case anything happens to the payer, the plan will pay for itself so your kid dont't have to worry about edn.
if you dont't want, then just put in the bank fixed deposit , or invest regularly.
Last edited by instantoats; 29-05-2009 at 11:06 PM. Reason: text edit
What is the difference between course fee and tuition fee? Very confusing.
Last edited by Oppsgal; 30-05-2009 at 01:17 PM.
tuition fee and course fee refers to the same thing. btw, even tho it's impt, the kids can get loan. what is equally impt is our own retirement
To get saving plans is a good start to save up and some plans gives you both coverage and savings. And it definately gives better rate then the bank. There are many type of plans out there in the market. But mostly it depend on the concern and planning you have to get the correct plan.
Both my husband and i are in the insurance line. Can contact me to get more info of course at no obligation at all. It's just a service that we provide. firstname.lastname@example.org
i think its around $100k 20 years down the road for uni education fees in singapore. So its better to start saving early. I did not get a savings plan, instead i've got an investment linked policy from HSBC for my son. I thought it makes more sense esp the linflation is so high and investment seems to be the only way to counter the inflation.
I basically got mine as an endowment plan from aia. Where I pay for 12yrs and save for 18yrs. not alot but still some commitment to saving for my baby education in future. Hopefully she stays in SG to study...
the other way is to invest directly in the stock market, putting in a fixed sum every month, buying a blue chip stock. over time, the funds will accumulate.
or, a combination of the two...
AXA Life Insurance
i only signed a trust fund thingy for pin. for her edu..
Mm... Personally I feel that a hospitalisation plans r more impt. to me, that's the most basic my girl mus have. Since our baby gets sick more easily, I've gotten a plan that will cover her medical expenses n will allow me to admit her to private hospital w/o having to worry about the cost. Imagine yr baby is Very sick n you still have to wait for yr turn in KK.
Hubby & I are using Adam's Standard Chartered account as his Education Savings acct (Govt gives matching amount of $$ put in up to 7yo or $6k whichever comes earlier)
So we just put in money every month inside that account.
On top of his Education Savings acct, we bought an investment and insurance policy for him which covers critical illnesses.
I would suggest accident plans to treat knocks and cuts...more affordable and practical..Imagining having a cut on baby's hand or foot.. Education..Life...Illness..Hospi also important... see budget ..
There are several ways to save up for your child's education, here are the main 3 ways:
1) Savings plan- Fixed monthly premium eg $100 for 15years and cash out at end of 20 years
2) Invest-Link Policy- Fixed monthly premium eg $100 allocated to different types of funds (dollar cost averaging effect). Once cash value is accumulated, you can encash anytime (but 1st 3 years, cash value is practically zero since most of your premium goes to distribution cost/admin fee)
3) Stocks & shares-earning interest and dividends
Depending on your risk appetitite, you can choose which one you are more comfortable with.
For me, i believe in covering your baby's health and critical illness coverage 1st before deciding on child education plan if budget allows because medical fees in SG are more worrying problems and often we get hand-tied if we need a large sum for medical bills.
while insurance plan are expensive...but my qns is if you dont put your money in a policy which offer higher interest rate...then how are your money going to grow?