What’s the difference between PruMy Child and other education Plan in the market
|PruMy Child (Investment Link)||Other Insurer (conventional)|
|Coverage starts as early as 18 weeks during Pregnancy||Coverage start at age 2 weeks old after born|
|One plan for Life (cover up to age 100)||Maturity date for children education at age 25|
|Do provide comprehensive coverage for medical ,accident,36illness& etc||Normally only have a life and medical card(riders)|
|Flexible withdrawal at age 18 years old for children education||Withdrawal can be done thru Policy loan with interest charge or surrender|
|Children do not need to re purchase a new policy after age 25||Children policy mature at age 25 and they need to purchase a new policy with new premium & waiting period|
|Flexible option for fund either guarantee interest or high return||Non flexible|
|2 option for child education payout :
l Flexible lump sum payout
l Guarantee yearly payout
|Non Flexible, only pay out lump sum at age 25
The question for the parents who are looking for a children Policy
1. Are you looking for purely protection plan? Purely saving/investment plan? Or you are looking for a combination of both protection and saving?
2. What is the main purpose of an education plan?
3. What age will your children go for College and university course?
4. How much do you wish to prepare for their education when they reach the age of 18 years old?
Come to think about the question above, when we met with some client who enquire about children education plan, it always trigger their mind with those question.
It’s actually not hard to solve the above question, for a baby protection or saving come first? The answer will be both are important. why do I say so when your children fall sick you will be worried about their health, you will not hesitate to send them to the best hospital, getting the best treatment no matter how much it cost as long as they got treated, if they do not have any medical or illness coverage it will wider your worries, if you are loaded with tans of saving and backup fund you might not be worried about the cost for medical in short term, but what if the illness could not be treated and need a long term follow up, what will happen to your saving and back up fund. That’s the reason why they need to have a comprehensive coverage since young.
Some parents are not clear about the purpose of purchasing an education plan. Why do I say so? Due to tight budget and limited household income, they will purchase a very low premium education plan from the bank such as RM 100 ringgit a month, but come to think about the RM50 ringgit saving plan, do you think it’s sufficient
Let’s do a simple calculation:
Mr. Lim, & Mrs. Lim House hold income RM 4,500 per month, their new born baby Linda Age 1
They have started a monthly saving for her RM 100, Compounding interest rate (2.85% p.a)
18years down the road they have save an amount of RM 21,600, After adding the compounding interest the total lump sum of education fund for Linda at her age of 18 RM 27,349.
Is it sufficient for Linda to study locally or overseas? The answer is definitely NOT SUFFICIENT, so what’s the purpose of purchasing the plan in the first place?
IF Mr. & Mrs. Lim purchase a conventional plan which will mature when Linda reach her age of 25, will the plan be able to help her in supporting her education fund?
Nowadays children go to college much earlier. They finish their education in secondary school at age 18, they will advanced their studies in college or PRE- U at the age 19, assuming they need a lump sum of money for their education in the college but the education plan that their parents purchase will only mature at the Age 25, so shall they loan an amount from the education plan by paying back yearly loan interest to the insurance company or surrender the plan in order to further study? It’s important to know the features of an education plan before purchase it because there is always terms and condition with conventional education plan
Lastly for the parents out there who wish to start an education plan for their children, please think carefully how much education fund do you wish to have for each children when they reach 18 years old? How much is your budget and how long is the term for your saving?
Detail enquiries Please do not hesitate to contact us through email or leave us a message.