As a parent, you want the best things to happen to your children and you wish them to have a better life journey and a better access to many opportunities out there. While contemplating these pure hopes and prayers for your beloved children, you might start to think about their education savings plan as early as possible before they grow up and while you are still at your prime age. By looking for a child education savings plan and buy child education savings plan Malaysia , your children will have a great financial support to start their tertiary education in future. Here, we would like to introduce you to the benefits of having an education savings plan for your children.
What Is An Education Savings Plan?
First, it is important to understand education savings plans or usually known as education plan insurance. In general, an education savings plan is a financial strategy between parents and the insurance company that could act as a scholarship fund to finance the higher education of children in the future. These plans encourage parents to be smart in spending their money and be more aware of the future of their children, especially the children’s education that is getting more expensive than before. In other words, an education savings plan is a plan that promotes savings for the future needs of children’s education and also be as a financial protection against the risk of disability, death or critical illnesses during the insurance contract period.
The Benefits of Buying An Education Savings Plan For Children
We will list down six reasons why you should have an education savings plan for your children.
- A Financial Saving For Your Children
If you continuously pay the monthly subscription fees of the education plan insurance, your children will have a significant financial savings that has been accumulated over the course of 18 to 23 years.
- Earn Bonuses And Top Ups
The possible bonus payments that could be added to your children’s education fund as you continue to pay the premium is indeed the main advantage of purchasing this insurance. The bonus amounts vary depending on the plans and insurance providers; for instance, AIA EduAchieve offers a bonus of 15 times when your child enrols in college. On the other hand, the last 60 months of a policy’s life are covered by a 2% bonus from AXA.
When one or both parents pass away or become totally and permanently disabled, these riders help cover the basic premiums. In this way, regardless of what happens to you, you’ll at least be able to feel relieved knowing that your children have the finances to further their education and have the financial backup plan.
- Enjoy Tax Reliefs
Education insurance purchased for your children can be claimed up to RM3,000 per year for tax reliefs (combined with medical insurance). While enjoying this eligibility of the tax reliefs, your children’s financial plan for education is still provided and secure.
Higher education is important for any individual but unfortunately, the cost of higher education in Malaysia is getting expensive. Click this buy child education savings plan Malaysia to know more about AmMetLife’s education plan insurance for your children.