Preparing for the cost of a child’s university education requires early planning and disciplined saving. Both local and overseas university education can be costly.

According to the National University of Singapore (NUS) website [1], the estimated tuition fees for the 2022/2023 academic year range from SGD 28,741 to SGD 38,671 for local students.

For overseas education, expenses can be even higher. According to College Board [2], the average annual tuition and fees for the 2022/2023 academic year in the United States are:

– USD 38,640 (in-state) for public four-year colleges – USD 54,880 (out-of-state) for public four-year colleges – USD 57,333 for private non-profit four-year colleges

By setting aside money regularly over a period of 10 to 15 years, parents can build up the necessary funds without the pressure of large, last-minute expenses. This steady approach prevents families from facing financial surprises when the time for university arrives.

Best Endowment Plans for Children’s Education

A regular premium endowment plan, with a 10- or 15-year horizon, is an ideal savings tool for educational goals. Endowment plans provide a disciplined approach to savings, where parents contribute a set amount regularly. This structured saving method ensures that funds are available just as education expenses arise, offering peace of mind and financial stability.

The Advantage of Traded Insurance as an Endowment Plan

Traded insurance policies, often available on the second-hand market, can offer significant savings and make an excellent endowment plan. When a parent purchases a traded endowment plan, they often acquire it at a discounted rate compared to the total paid by the original owner.

For example, if an endowment policy required an original owner to pay SGD 10,000 per year over 15 years, the owner might have already paid SGD 50,000 after five years. On the second-hand market, however, a buyer could potentially purchase this policy for SGD 35,000.

Higher Returns with Traded Endowment Plans

This discount in capital significantly enhances the returns on a traded endowment plan, as the maturity value remains the same regardless of the price the buyer paid. For parents looking to maximize their savings with a structured, disciplined approach, traded endowment plans can be an effective solution to secure their children’s educational future.

Contact us for discussion of a suitable discounted endowment plan for your child

To find suitable plans for your family and child, do contact us using the Whatsapp button on the right of this screen, email to us at info@conservationcapital.com.sg or click on the button below to view our Investment List to look for RP plans (regular premium plans = saving annually regularly)