An education insurance plan is a type of policy that offers financial support for your child's college education. It is also sometimes referred to as a child education savings plan.
The benefit of an education plan is you can tailor fit it according to your savings goals. Not only does it provide a structured and strategic approach to building your child’s college fund, it also works around your budget and timeframe, too.
Learn the different approaches to saving up for your child’s college tuition through educational plans. Here’s what to look out for when choosing an educational plan:
1. Guaranteed sum and growth potential
There are endowment policies and there are investment-linked policies.
An endowment policy resembles a savings account with insurance benefits that promises a guaranteed sum upon plan maturity, while investment-linked policies come with long-term growth potential that will ultimately result in you getting more money upon maturity.
A quality education insurance plan ideally provides the advantages of endowment, life insurance and investment-linked policies.
AIA Philippines’ Future Scholar life insurance offers these benefits. It’s a variable unit-linked insurance plan that guarantees education benefits and offers long-term growth potential.
2. Plan continuation benefits
How will you handle the unexpected, especially when it comes to your child’s future?
When choosing an educational plan, ensure that it offers a continuation benefit. To put it simply, the plan coverage will continue—even during death or disability—until maturity. This way, you’ll know that no matter what happens, your child’s education will be taken care of.
3. Flexible payment terms
An insurance plan that contributes to your child’s education fund, like other insurance plans, requires you to commit to a predetermined payment period. To some, this might make them consider investing in an education savings plan risky. However, there are always exceptions.
AIA Philippines’ Future Scholar plan gives you the flexibility to either compress the premium into a short term of five years, or to pay regularly until the child reaches 17 years of age.
Every child is different, so your college education plan will be, too. Take the time to assess your current financial situation against your child’s education goals. How much will you need to save? How much time do you need to do it?
Don’t worry, you don’t have to go through this journey alone. Reach out to an AIA Life Planner to help you create a thoughtful, balanced approach to your child’s education.
