Doctor? Lawyer? Accountant? CEO? Acknowledging that your children will grow up with dreams and goals of their own, you can do your part to help them reach those goals. The Sacos Education Plan is especially designed to help you meet your child’s future needs.
Why is there a need for a special fund for university?
Today, the government subsidises university education for undergraduate students. However, university education is becoming more expensive and more competitive. There is no guarantee that such provisions will still be around in your child’s generation. Moreover, with the establishment of UniSey, scholarships are limited to the courses available for both undergraduate and graduate degrees. A special fund from the outset will ensure that funds would be available in the future should it be required.
Why use the Sacos Education Plan?
- Your monthly savings is guaranteed as the monthly premiums can be deducted straight from your salary
- You can decide on the amount comfortable for you bearing in mind the average cost of tuition for university degrees
- Using life insurance as a savings option restricts your ability to chip away at the savings for unnecessary spending
- Should you ever suffer the misfortune to become disabled or pass away, the Sacos Education Plan will still remain valid for your child upon maturity.
How the Sacos Education Plan can pay for university?
- Policy term
The Sacos Education Plan matures in 10, 15 or 20 years. This provides you, as the parent, with ample time to save up for university fees. Students normally attend universities between the ages of 18 and 22. You can tailor your plan according to the current age of your child.
Example: Say your child is currently 3 years old and start university at the age of 18, the most suitable option would be a 15-year plan.
- Survival benefits
The Sacos Education Plan pays 10% survival benefits every year during the last five years of the policy. Bearing in mind that a bachelors degree normally averages three years, parents can save the total amount of the survival benefits to pay for first year annual tuition fees and other associated costs such as visa application, admission fees, deposit for accommodation and/or airfares. Parents can also use the total amount saved as evidence of sufficient fund, normally requested by universities and immigration.
Example: Say the parent took out a SCR500,000 policy, parents will receive SCR50,000 every year in the last five years of the policy. By saving each year’s survival benefit payment, parents would have saved a total amount of SCR250,000 which can cover the cost of first year tuition fees and other associated costs.
At the end of the maturity period, the policy pays out the remaining 50%, with accrued benefits. The total amount can be used to pay the tuition fees for the second and third year.
Example: On a SCR500,000 policy, the remaining 50% equals to SCR250,000. This amount will be split to cover the tuition fees for the second and third year, including exam resits if required.
- Due date for payment of fees
When devising a plan which is suitable for your situation, you should consider the maturity date and due date for payment of fees. If you intend to use the survival benefit to pay first year tuition fees, you should ensure that the final 10% is received before the due date for tuition payment. Similarly, the payment of the last 50% should be received prior to the due date for second year tuition fees.
Example: Your payment schedule would be like the following,
Year 1 – 10%, Year 2 – 10%, Year 3 – 10%, Year 4 – 10%, Year 5 – 10% and Year 6 – 50%.
Part of the savings you have made from payments received from years 1 – 4 will be used to show proof of fund, visa application fees and admission fees when requested. The remainder would be added to the 10% received in Year 5 to pay first year tuition fees. The payment received in Year 6 should be received by you before second year tuition fees are due.
These options can be explained in further details with an agent or a life insurance officer at Sacos Insurance Group. Contact us at firstname.lastname@example.org or on 4295000 or visit any of our branches for further guidance.