Have you ensured that you have enough savings for your child’s future? If you are still finding methods to achieve that, take a look at our child education savings plan below!
Dear parents, it’s never too early to start thinking about savings plans for your kid’s college. Even if he/she is still young, the best time to start saving for their future is now!
It is up to you to do the research and consider your financial situation. Find out what might provide the most benefits while offering more options for their future.
How to Plan Your Child Education Savings Plan
Here is a checklist of how to plan for your child’s future:
- Define Your Time Horizon: Count the years until graduation and after graduation.
- Estimate the Cost of Education: Determine the cost of paying for your child’s education which depends on a variety of factors.
- Value of Your Existing Assets and Liabilities: Avoid entering into investments made for other financial purposes, such as planning for retirement funds, when planning for your child’s education.
- Know the Amount to Save Now: After knowing the estimated cost of education, determine how much to save now or the monthly contribution needed to achieve this goal.
- Start Immediately: If you save and invest early, you will have a longer time period to reach your goals.
4 Best Education Savings Plans in Malaysia
Parents, you can start saving for your child’s college by opening a college fund. The process is not easy, but with dedication, hard work, and careful planning, it is possible to save enough so that your child can get through college without being in debt!
Here are some education savings plans in Malaysia that you can consider:
#1 A-Eduachieve 2 (AIA)
A-EduAchieve 2 is a unique plan that combines elements of savings, protection and investment to help you raise the money you want to set aside for your child’s education.
Features we like:
- Freedom to increase or decrease the amount you wish to set aside as savings which will be discussed on a case-by-case basis
- On the child’s 18th birthday, the company will increase its education savings fund with a bonus payment of up to 15 times your regular monthly premium.
- Death and maturity benefits for parents where your child’s education fund is not affected if the parent dies/becomes disabled.
- Additional protection if you stay with the company for a longer time
- Can choose how money is invested by changing funds anytime you want, at no cost.
- Have the option to convert it to another investment-linked basic plan for your child, without further underwriting once the plan ends.
#2 Allianz Eduplus (Allianz)
Allianz EduPlus is an educational savings plan that is the stepping stone for your child to reach their goals in life.
In addition to helping your child build a sizable education fund for their higher education, this plan also provides full coverage that protects their future financially.
Features we like:
- The flexible premium payment period of 6 years, 10 years or throughout the term of the policy
- Educational benefits are guaranteed to be paid starting from when your child enters college or university at the age of 17.
- Eligible for education tax relief
- Enjoy uninterrupted coverage with a conditional no-delay guarantee feature
- Maturity benefits paid in a lump sum at maturity
#3 Elite Kids Saver (Alliance Bank)
Our next option for your child education savings plan is a savings plan from Alliance Bank. Start saving today with Elite Kids Saver to prepare for your child’s future.
Additionally, your child will be provided with the assurance that their education is accounted for as you save.
Features we like:
- Gain access to funds through College Startup Benefits
- The direct and easy application process
- Income Tax Relief
- Short Premium Payment Period: No Interval Guarantee
- Conversion Options
- Insurance coverage
- Guaranteed Maturity Benefits.
- Minimum Crediting Interest Rate at 0%.
#4 Premier Education Savers (Maybank)
Premier Education Savers is eligible for children between the ages of 1 and 17. The plan offers the flexibility to meet your child’s educational needs, with education funds payable from the account when your child reaches age 25.
During this period, parents are also allowed to make partial and automatic withdrawals from your account.
Features we like:
- Lifetime Investment-Linked Plans that allow you to choose to invest in a variety of funds.
- A high allocation rate starting from 70% of the premium allows you to get more returns on your investment.
- You or your child will be insured for Death and Total and Permanent Disability.
- Choose coverage benefits from as low as 55 times to a maximum of 100 times your annual premium.
- Convenient premium auto-debit from Maybank Current/Savings account
- Flexible payment options: annual, biennial, quarterly or monthly
- Lifetime investment option: upon reaching the age of 25, your child can choose to take over ownership of the policy and continue saving (the plan will expire at the age of 100).
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Read more: Waldorf Education: A comprehensive guide for parents