Saving for School - Insurance

Child Insurance

Before your child even starts school, you would probably have spent a small fortune on many enrichment programmes. This may continue into his primary and secondary school days, depending on his enthusiasm and persistence, as well as your pocket. Of course, now that he is going to school, you spend another fortune on his tuition.

In Singapore, tuition fees at the two universities are currently about $5,500 per year (except for dentistry and medicine courses that are more expensive). When it is your child's turn to enter university, this sum could have ballooned, with inflation and rises in fees. And if you send your child overseas, the bill, including school fees, living costs, air fares and other expenses, could amount to more than $60,000 a year.

Some parents regularly put aside a sum for their children's education, either into a savings account or a unit trust. Others expect to rely on their CPF savings which can be withdrawn under the Education Scheme. However, note that CPF funds can only be used for local studies and have to be repaid with interest within 10 years.

A number of banks offer savings accounts for children. However, only POSBank's First Account offers an education grant along with the savings account. If the parent holding the account in trust for the child dies or is disabled, the bank pays an education grant to the child - $100 monthly from age seven to 12 years and $200 monthly from 13 to 18. There are conditions though. For example, the child has to be below five years old to open this account, and under six years old when an accident happens to the parent.

How are you going to support your child? Want to buy an insurance, but do you know how? This article will help you pick an insurance plan for your child in no time. Read on...

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Saving for School-1

Insurance Policy-2

Endowment Policy-3