As a parent, you wish nothing but the best for your child and that includes the best education. Parents want to send their kids to the top schools. They dream to get the best quality education in the country. There enters the discourse on having an educational plan for your child, a powerful tool for your child’s future.
Importance of educational plan
In most Filipino families, education gets a big chunk of the pie in the family budget. Filipinos believe in education is the key to success. Given this culture, despite the expenses, we always put education on top. Because aside from money and properties, education is also a form of investment.
Just recently, the Commission on Higher Education (CHED) said that they have allowed a number of schools to declare tuition and other fee increase. In addition, 56 private higher education institutions pledged to increase school fees early this year. Given the sudden increase in fees, parents are obliged to adapt and save more money for their child’s future.
What is an educational plan?
An educational plan is a savings, insurance, and investment plan that helps parents save funds for their child’s college education. Here, you pay a certain amount of money on a monthly, quarterly, or yearly basis. The amount of money you invested is used by the company to save and invest in them. They allocate the money for your child’s educational funds. In other words, an educational plan improves the chances of satisfactory returns which is secured financial stability for your child’s educational expenses.
Financial advisors will tell you that the earlier you invest, the better. It is true since, upon a child’s birth, they can already have an educational plan. As young as that, you can already set up an educational plan. An educational plan always costs lower for younger beneficiaries. And the cost is higher for teenagers and young adults. The earlier you secure and invest in a certain educational plan comes with the bigger chance of gaining more interest.
5 Best Educational Plans in the Philippines
The facts have been already laid out — an education plan for your child is a must! Here, we present to you the five best educational plans in the Philippines by the best life insurance providers in the country.
Sun FlexiLink flexes how it can empower you to create an education fund for your child’s future through its investment-linked life insurance plan that is within your means. You can start with small amounts but this educational plan also allows you to boost up your plan when you can afford it. Any time, you have the financial freedom to increase your fund’s value anytime through top-ups or excess payments on top of your regular premium.
What we love:
- All-in-one educational plan including a life investment and fund-building for your future needs.
- Available for partial fund withdrawal in case of emergency.
- Open anytime for top-ups to add more value to your fund.
- Loyalty bonus is up for grabs if policy is continuously active for at least 10 years.
They may have changed their name but they remained in providing an educational plan for your child. Through Philam Life/AIA Philippines educational plan Future Scholar, an investment and life insurance plan is within your reach. This educational plan gives guaranteed education benefits and long-term growth potential, with an annual payment as low as PHP 20,000.
What we love:
- Annual payment as low as PHP 20,000.
- Assured education benefits for your child in eight semi-annual guaranteed cash payouts for four years of education starting at age 18.
- Child’s education fund can be paid in just five years or until your child is 17.
- The educational plan continues in case of emergency or death of payor (you), without you being obliged to pay in the future.
Through their professionally managed AcademiX, this AXA educational plan helps your child in reaching their dreams and fullest potential by series of investments.
What we love:
- Lets you pay for at least 5 years.
- Life insurance coverage will be the same to the overall amount of money in your policy or five times your yearly premium (depending on which is higher).
- Annual education payout.
- Gives you the freedom to choose how much investment risk or payment you can endure depending on your risk appetite.
- In case of emergency or death, your child is certain to receive pre-determined guaranteed payouts yearly to cover school/university expenses until they finish college.
- Loyalty bonus in the form of 10th and 20th anniversary bonuses.
For your child’s education plan, Manulife Philippines has a Manulife educational plan called Manulife Education Builder. Because they envision the need of giving children a good education, they help in covering your child’s college needs — whatever happens.
What we love:
- Saves up for your child’s educational preferences may it be a 4-year or 5-year course in college.
- Flexible customer service as they allow payors their preferred paying period and payment modes.
- Additional protection for your investment in case of death or disability of payor through Manulife’s investment funds.
- Lets you enjoy protection with your investment should anything happen to you as your child can get premium waiver or cash support until they are 17 years old.
Just like the others, PRULink Elite Protector Series is an investment-linked life insurance plan with more potential for wealth increase and extreme protection. Basically, this investment is not enclosed to your child’s educational needs but also for their life insurance as well. If you have medium to long-term financial goals aside from your secured child’s quality education like purchasing different properties, securing a health insurance or having funds upon retirement, this one suits your needs.
What we love:
- Payment term is upon your preference — it can be 5, 7, 10, or 15 years in PHP or USD.
- Long coverage duration that can last up to 100 years old.
- Eligible for applicants aged 0 years old (7 days) to 70 years old.
- Protects you against accident, death, disability, critical illness, and hospital expenses.
- Loyalty bonus is achievable upon your 11th to 15th anniversary.
Qualities of educational plan providers
- Track record
Under this quality, we should always do research before investing our money to a certain life insurance provider. Given the numerous list of investment companies, it is best to do a background check according to longevity in the business and reviews from payors and investors.
- Product and service variety
We need a one-stop shop for our investments. Check the wide variety of services that an educational plan provider has. Look for offer packages, life insurance, car insurance, health insurance, travel insurance, and property insurance.
- Lifestyle match
Not all educational plans match one’s family financial situation. It is best that you compare the prices of the educational plans by having a lot of options then check which one is affordable, which one is tolerable and which one is way beyond your financial status.
- Topnotch customer service
Insurance companies should be accessible may it be on-site or online. Their agents and workers should have good communication skills, good manners and right conduct as they engage with their clients.
Get an education plan now
The Philippines has a lot of selections in terms of securing your child’s future in terms of their education in a university or college. Education is the key to success, so better have an educational plan for your child. Money brings happiness to the family, but savings and investments for your child’s education will surely bring wider smiles in the household.
Interested more about your child’s education? Read: Parents’ Guide: 12 educational shows your child should definitely watch