Insurance Info - Child Education Plan

The child education policy is a life insurance product specially designed as a savings tool to provide an amount of money when your child reaches the age for entry into college (18 years and above). The funds can be used to pay for your child's higher education expenses. Under this policy, the child is the life assured, while the parent/legal guardian is the policy owner.

If you opt for a payor benefit rider, the education policy also provides assurance that, in the event of the policy owner's untimely demise, the child will have access to the funds to help finance his or her studies.

• WHY DO YOU NEED A CHILD EDUCATION POLICY

The cost of higher education is increasing. The need for access to higher education and the cost will strain on you and your family. That is why it is important to start planning for your child's education as soon as possible, because the earlier you begin, the more time you allow your money to grow. The child education policy will privide the funds needed by your child to pursue further education and annsures that whatever happens in the future, your child will still have the means to pursue some of his/her goals in life.

• CHOOSING A PLAN

When choosing a policy, always:

1. Consider how much money you wnat to set aside for your child's education.
2. Make sure that the premium is affordable.
3. Choose a policy that gives you flexibility so you can gradually increase the savings in the furure.
4. Ensure that you opt for the payor benefit rider.

• BASIC TYPES OF PLANS

Endowment policy An endowment policy combines a savings component with protection coverage. Endowment policies may be either participating or non-participating. Non-participating policies do not participate in the life insurance fund’s profits but all insurance benefits are fully guaranteed. Participating policies have a portion of insurance benefits guaranteed, however the total amount of benefits at maturity is not guaranteed because it depends on the insurance company’s life insurance fund’s performance. Investment-linked policy An investment-linked policy combines the elements of investment and protection based on your requirement as the policy owner. It offers flexibility as you are able to increase or top-up your monthly premium contribution as your income improves. You may also be more aggressive with your investment. An investment-linked policy will allow you to choose the types of funds your money will be invested in. However, like any other investment, there are risks involved and there is no guarantee on the returns, which may be higher or lower than the amount projected. [Sources: Insurance Info]