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I want to build an education fund for my child. How do I go about it?
Currently , Great Eastern offers two types of education plans that you can choose from.
Great EduPlanner is a limited pay participating endowment plan with non-guaranteed compound reversionary bonus (CRB). With this plan, you can enjoy longer coverage with a shorter premium payment term. Depending on your needs, you have the option to choose a plan with 20 years coverage with a premium payment term of 15 years, or 25 years coverage with a premium payment term of 20 years. Upon maturity of the plan, the basic sum assured, accumulated CRB (if any) and terminal bonus (if any) will be payable.
SmartEducate Saver is a regular premium investment-linked insurance plan for education savings purposes. With this plan, you can see your child’s education fund grow with an extra investment allocation to your policy. Depending on your child’s age, you can choose an appropriate policy term from 8 to 24 years. At the end of your policy term, you will receive the Total Investment Value (TIV) of the plan to fund your child’s education.
How can I enhance the protection for my child?
You can choose to enhance your child’s insurance protection by attaching comprehensive insurance riders to your plan.
For instance, SmartEducate Saver gives you the option to attach the SmartMedic rider, which provides comprehensive coverage for hospitalisation and surgical expenses. This ensures that your savings will not be depleted in the event of unexpected medical emergencies.
Both Great EduPlanner and SmartEducate Saver also allow you to attach a payer benefit rider, which waives premiums in the event of Death, TPD or critical illness of the payer. Should the unexpected happen, the policy continues to be in-force as the Company will pay the premium on the payer’s behalf. You can rest assured that your child will have the funds needed for his/her education when the policy matures.
Am I entitled to education tax relief if I purchase the Great EduPlanner or SmartEducate Saver?
Yes, benefits received from both of these plans are generally non-taxable and premiums paid may qualify for tax relief of up to RM3,000. However, tax benefits are subject to the Malaysian Income Tax Act, 1967, and the final decision of the Inland Revenue Board.
What is the difference between a traditional education and an investment-linked education insurance plan?
Traditional education insurance plans are generally endowment plans which combine savings and protection. It caters to customers with a low risk appetite. No investment element is attached to this type of plan and it pays out a lump sum upon the maturity of the plan.It is a plan that helps you grow an adequate pool of money to fund your child’s education.
On the other hand, investment-linked education insurance plans combine investment and protection to maximise your potential returns. The premiums are pumped into the unit funds of your choice. You are given the flexibility to choose from a range of funds to invest in and you can vary your sum assured if your financial goals change. Upon maturity of the plan,TIV of the units in your policy will be paid out.
Nevertheless, it’s never too early to secure your child’s education fund. With you can ensure your child gets a head start to a brighter tomorrow.
The information highlighted above is non-exhaustive. You are advised to refer to the product brochure, Sales Illustration, Fund Fact Sheet, Product Disclosure Sheet and sample policy documents for detailed important features and benefits of the plans. Talk to your Great Eastern Life Planning Advisor today!
