anyone looked into educational funds/ insurance?

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anyone looked into educational funds/ insurance?

Postby azure » Sat May 08, 2010 2:26 pm

hi all,

with all the ever rising educational cost, it just worries me !!! was wondering if anyone has looked into those educational funds / insurance for the kids & hv information to share .... these financial planning making me a headache !!!

thanks

azure
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Postby radiantmum » Sat May 08, 2010 5:20 pm

Endowment fund returns are low but if you are risk averse and do not have any investment experience, ok to have a basic plan. Estimated education fund for local university is approx 40k.

Recommended life insurance coverage is approx 50k per child. Make sure parents' life insurance needs are met before child's.

Most importantly have hospitalization and medical coverage for child.

Seek financial planner's advice. These are all financial commitments - important to ensure that you have the capacity to continue paying the premiums in later years near retirement.

That's from my personal planning perspective. Hope that helps.

radiantmum
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Postby caroline3sg » Sat May 08, 2010 10:44 pm

We have education fund for each of our children, one person pays for one child.

Basically it is monthly premium for 5 yrs and leave it there for 10 yrs or so till the age that your child require. You can work out the total sum required or the monthly premium with the insurance agent according to your financial means.

caroline3sg
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Postby caroline3sg » Sat May 08, 2010 10:47 pm

OCBC relationship manager told me today they have something like:
pay 10K each yr for 5 yrs, can get 77K after 15 yrs. You may like to check it out.

caroline3sg
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Postby azure » Sun May 09, 2010 7:01 am

hey thanks - radiantmum & caroline3g! appreciate your take in this!! the traditional savings account is so slow & inflation adverse, then somehow thru the insurance thing- with the financial crisis & downfall of aig, it somehow worries me if it really works in 18 yrs in time to come, then those so called investment-linked insurance on those unit trusts - maybe i suay lor, the unit trust never make $ one ... so just wondering how how how or if there are any ideas, esp being a newbie mum... arrgghh loads of worries !!!

haha btw, happy mum's day to all !!

azure
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