“Education is the key to unlocking the world, a passport to freedom” – Oprah Winfrey.

As parents, it is natural to want the best for your child – the best schooling, best opportunities in life, etc. Education is one of the best gifts your children can receive, you want your kids to go to the top schools for their chosen fields.

Even though education is the most important priority for parents, the costs are a major concern. We shell out a large portion of our savings to provide the best education.

If you already have children, the earlier you start planning, the better.

Especially if you want your child to attend good institutions and abroad. You must begin planning soon as the education costs are only on the rise.

Similarly, to ensure your child receives the best education, you need to prepare yourself financially.

If you plan now, chances are you will not compromise on your child’s future, his/her dreams, aspirations, and ambitions.

Definition of Education Or Child Education Insurance?

The Education or Child Education Insurance Policy is an insurance coverage plan specially designed for a savings tool to provide an amount of education cost when your kids reach the age for entry into college (18 years or above). The funds financially secure your child’s future educational needs, even in your absence and use to pay college, hostel and illness expenses. Under the education insurance plan, A kid’s student life will be Assured, while parents or legal guardian is the plan owner.

If you opt for a payor benefit rider, the education insurance policy also gives the guarantee that, in the case of the plan owner’s unfortunate death, the child will have access to the resources to help finance his or her education.

Types Of Children Education Policy?

There are two basic types of education plans – endowment and investment-linked policies. Endowment policies resemble a savings account with insurance benefits whereas investment-linked policies let you invest and still retain coverage.

For both policy types, a lump sum benefit is typically released upon maturity plus bonuses on the accumulated premium.

Now with investment-linked education plans, well-performing funds could earn special dividends and bonuses to be paid when the policy reaches maturity. However, it can also be more expensive to maintain whereas endowment policies typically costs less overall.

Why Children Education Planning Is So Important?

It’s no need to hide that education is very expensive and it’s certainly not getting any less costly what with rising charges and common cost improves.

At existing, even a basic business degree course in Malaysia might cost over RM 50,000 in a quality private university. If we calculate our amount of rising costs to be 4%, you will need roughly RM109,000 to coordinate that determine in Twenty years – that’s a big number! And we haven’t even regarded as an education abroad yet!

So how do people bear the cost for their children’s education with it being so expensive? There are several choices to be sure, but each funding process comes with its own set of expenses. For example, mother and father can opt to pay for their children’s education by receiving from their EPF consideration but this would cause exhausted pension finance and a reduction of a result income.

Others may consider getting out easy or re-mortgaging to finance their children’s education but this too would have attention expenses. Moreover, some may not even consider getting funding for the excessive amounts they would need, especially if they were to pay for the tertiary education of multiple children.

Of course, there’s always a PTPTN loan alternative to consider. But that would basically seat a teen (if they even qualify in the first place) with long-term debts before they’ve even gained their first paycheque.

The Benefits of Buying an Education policy：

Here are six reasons why you should seriously consider buying an education policy:

✅ Earn bonuses and top-ups
The biggest benefit to buying such a policy is the potential bonus payments that get added to your child’s education fund as you continue to pay the premium. The bonus levels vary with providers and plans.

✅ You can start saving for your child early on
Most of these policies can commence as soon as your child turns 14 days old and if you keep up your premium payments, your child will have a significant financial boost that has been cultivated over the course of 18 to 23 years.

✅ Payor Riders
These riders help cover basic premiums in case one or both parents die or suffer total permanent disability. This way, no matter what happens to you, at the very least you’ll have peace of mind knowing that your child has the financial means to pursue his or education.

✅ Enjoy Tax Reliefs
Education insurance purchased for your children can be claimed up to RM3, 000 per year (combined with medical insurance). This way you are paying less in tax and still providing for your child’s education. Win-win!

✅ Access to Small Withdrawals
In case you are having money difficulties, certain education policies allow withdrawing a small portion without charging a withdrawal fee. Here you can still maintain your saved amount while having free access to the cash you need.

✅ Complimentary Assistance
Education policies may also offer added benefits such as a concierge service to help your child settle into university or college with as little hassle as possible. The concierge can help with accommodation bookings, flights, student visas, etc.