Why it makes more sense to save up for your child’s education using insurance

With free education on offer, not a lot of parents think ahead to their children’s tertiary education. The last thing you want as a parent is to deny your child the opportunity of a quality education because you are unable to afford it.

But before you rush over to the bank to open up a savings account, here’s why you should consider an insurance plan instead:

Minimal risks

Most people use cash Instant Saving Accounts for their long-term savings, increasing their balance by making monthly or yearly deposits. But the risk of doing that is they could be losing out substantially as a result! Despite inflation being low, the cost of goods and services is still rising faster than the very low returns being paid on cash accounts, causing buying power to decrease.

Meanwhile, Insurance products meant for savings purpose is capital-guaranteed upon maturity and returns from insurance savings plans are higher than what a typical bank savings account can yield, due to the longer time horizon of the plan.

Continuous savings even under unforeseen circumstances

One of your main concern as a parent is: “will my child still be able to go to university if something bad happens to me?”

The ‘anything bad’ refers to untimely demise, redundancy, disability and being struck with a serious and critical illness. When using bank savings or regular investments to save for your child’s educationthe fund stops growing as intended if you are unable to  inject new funds

BUT using insurance to save will ensure the child’s education fund is not compromised as there is insurance protection!

At what age does my child have to be? 

The best time to get an insurance plan for your child would have been yesterday! But do not worry, you can always start now!

If you cannot decide between the Sacos Junior Plan and the Sacos Education Plan pay us a visit at our branches (Maison Esplanade – Victoria, Pension Complex –Baie St. Anne Praslin, Green Corner –Providence)  or call us on 429 5000 or send an email to info@sacos.sc. We’ll be more than happy to help!

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