Is it necessary to sign up Insurance to save for Education
- Thread starter Oppsgal
- Start date
I guess it all depends on your financial commitment. I see now the insurance premium is not cheap even you start to buy for your child as early as 1 yr old.
For me, I didnt sign up but I did take up those essential ones like medical/hospitalisation plans.
missblue18
Member
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, u need to save up $841 a month for ten yrs if u want ur 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....
according to a magazine, u need to save up $841 a month for ten yrs if u want ur 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....
instantoats
Member
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.
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.
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Wow. So much to pay for studying in uni.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 your 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.
http://www.wilfredling.com/index2.php?option=com_content&do_pdf=1&id=25
What is the difference between course fee and tuition fee? Very confusing.
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instantoats
Member
tuition fee and course fee refers to the same thing. btw, even tho it's impt, the kids can get loan. wat is equally impt is our own retirement
fioncess
Well-Known Member
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. fioncess@gmail.com
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. fioncess@gmail.com
zhenhui
New Member
i think its ard $100k 20 years down the road for uni education fees in singapore. So its better to start saving early. I din 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.
nine_eleven
Alpha Male
one way to save up for your child's education needs is to sign up for a savings or investment plan with the insurance company
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...
Jeremy Tan
AXA Life Insurance
98252071
CarolOng
Member
Mm... Personally I feel tat a hospitalisation plans r more impt. to me, tat's the most basic my girl mus hv. Since our bb gets sick more easily, I've gotten a plan tat will cover her medical expenses n will allow me to admit her to private hospital w/o having to worry abt the cost. Imagine yr bb is Very sick n u still hv to wait for yr turn in KK.
Frenchkitty
Member
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.
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.
iwan2noe
Well-Known Member
Hi,
May I know which insurance company are u from or are u an independent consultant where u sells an array of policies?
Thanks & regards,
Yamuna
littlemoomoo
Member
Hi Mummies,
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.
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.