Education is one of the greatest gifts parents can give their children. But the reality is, sending kids to college is not easy and cheap and the rising cost due to inflation makes it more challenging for most average income families to afford it.
How can you secure your child’s bright future?
If you’re like most parents, you want your child to go to college because you believe education is the key for brighter future. Many Filipino parents actually work hard because they aspire for the best education for their children – to be able to send them to the best or of their chosen college or university to take up their chosen courses – to be a world-renowned professional or artist for example.
Quality education, however, comes with a hefty price tag. Tuition fees and miscellaneous increases every year to as high as 10%. Not to mention the rising cost of goods and commodities due to inflation. It can be challenging to have enough savings to keep up with the rising cost of quality education.
Let us look at the tuition fees of some universities in the country and the figures suppose they increase their tuition fees at 10% rate every year.
This may come as shocking to you but this is the reality. And this is not even considering the miscellaneous fees, weekly allowance, project or assignment expenses, commute or gas expense to be spent. In other words, you need at least a million every year for four years to be able to send your child to a good school.
The best time to save for a college fund is while your child is still young. This is so you can have enough time to build an education fund for your child. Also, by investing or making your money earn more, you can keep up with the regular tuition fee hikes.
Educational plans are being offered by many pre-need and insurance companies in the Philippines. It guarantees your child’s education, especially when your child dreams of going to a particular school.
The advantage of getting an Education Insurance is having the life insurance feature which offers protection to parents; i.e. if premature death or disability happens to the payor or parent, the premium payments will be waived but the policy will remain enforced and the investment for educational fund will continue.
VUL as an Educational Fund
The investment component can be used as educational fund for your child. As in a mutual funds, you have the option to invest in equity, bonds, balanced or money market funds which have the potential to grow your money through the years or until your child goes to college.
It already has a life insurance for your child and option to waive premiums in case the parent dies or got disabled.
You child may also continue the VUL policy suppose the funds are not used fully, to let the investment grow through the years and use it to fund other life goal such as for retirement.
Aside from VUL, traditional life insurance can also help you build education fund. Check the Best Insurance Plans for Your Child’s Education Needs to learn more about Sun Life’s products.
Secure your child’s future today!
Create your financial strategy with a financial advisor through a free financial consultation. Learn how much you need to save to accumulate the amount you need to send your child to college by sending us a message or requesting a free proposal.