Are you concerned that, given the state of the economy and the expense of living, you won’t be able to pay for your child’s education? You can consider to buy child education savings plan Malaysia while you make preparations for your child’s future education, whether it be at home or overseas.

According to a recent study, Malaysia is the sixth most costly country in which to pursue higher education, with parents reportedly shelling out 50 per cent or more of their income to finance their children’s college expenses. According to the study’s findings, Malaysians shell out a whopping 55 per cent of their income to send a child to college.

However, you can avoid that statistic. First, estimate your child’s school expenditures, including inflation, for the investing or saving period. With the projected amount, you may establish a goal and decide how to attain it. Here are the greatest ways to save for your child’s college.

What are the kinds of methods to get an education savings plan?

There are two kinds of methods that you consider when planning education savings for your future children. You can get insurance with education investment, or you can try getting an education savings account. Let’s take a closer look at insurance with education investment.

Insurance with education investment 

While most of us think of insurance in terms of protection (for ourselves or our loved ones), there is also insurance that doubles as an investment (for the child’s college fund, for example). This package is fantastic since it serves as both an investment and a safety net for your youngster. 

These policies are offered by a wide variety of providers, including banks and insurance giants like Prudential Malaysia and AIA Malaysia. Insurance for higher learning comes in two varieties:

Endowment Policy

An endowment policy is a hybrid insurance and savings product. There are two types of endowment policies: those that participate and those that do not. The benefits under non-participating plans are assured, but the policyholder will not share in any profits from the life insurance fund.

Although a specified percentage of insurance benefits is guaranteed for participating policies, the final amount of benefits paid out at maturity is not guaranteed and instead depends on the success of the insurance company’s life insurance fund.

Investment-linked policy

Depending on your needs, investment-linked insurance might include a variety of investment and protection options. Also, an investment-linked policy gives you the option to adjust your monthly premium payment when your financial situation changes. Moreover, if you purchase a policy that is connected to an investment fund, you will have the freedom to decide how those funds will be allocated. However, there are potential downsides and no assurances that the anticipated gains would actually materialise.

Do note these points before you settle with the education insurance policy:

• It’s important to think about how much you’ll want to save for your kid’s college.
• The premium is an ongoing expense, so make sure you can afford it.
• Select a plan that allows for the growth of the savings account over time.

After you’ve settled on a policy, you should keep tabs on it to make sure you’re on track to accumulate your target sum. As a result of fluctuations in the financial markets, the insurance company’s declared returns may differ from the initial projection. If you insure your child’s education, you can obtain a tax credit of up to RM3,000.