It is a dream of every Filipino parent to see their children receive their college diploma, a piece of paper that opens a lot of doors for better job opportunities in the country and abroad. Many parents work hard and spend a fortune just to send their children to college because they believe that education is the key for brighter future and of course success. They also believe that unlike material possessions, education cannot be stolen away.
But with the increasing cost of education, it is becoming harder for parents to send their children to college. Tuition fees and miscellaneous fees increasing every year not to mention the increasing cost of basic goods and services. Unfortunately, parents’ salary could not catch up with increasing cost of living and education. Private education is very expensive while public education is also getting costly with little government subsidy and scarce number of scholarship grants.
As a parent, you want to send your children to college. In order to this, you need to plan ahead. You need to have an educational or college plan for your kids. The best time to get an educational plan is when your kids are still young. This is for you to have more time to save money for their education. Let us say, your baby is just 1 year old, if you get him/her an educational plan today, you will have 16-18 years to save or invest money for his/her education.
There are many insurance companies that offer educational plans in the Philippines. The good thing about these educational plans is that they have life insurance feature. If something will happen to the payer (parent), the premium or payment will be waived which means the dependents don’t need to pay anymore but the plan is still active. So even if the Lord will get you early, you are assured that your children have funds for college.
Shocking Cost of Education
Every year, colleges and universities increase their tuition fees to as high as 10%. Assuming that schools increase their fees at this rate every year, you will be shocked how much it will cost you to send your sons and daughters to college few years from now. Let us get sample calculation. For example, your child is still a baby right now, how much would be his/her tuition fee when he/she will be in college or after 18 years.
Ateneo de Manila University
Estimated Current Annual Tuition Fee: Php 144,000
Estimated Tuition Fee After 18 Years (10% annual increase): Php 804,525
De La Salle University
Estimated Current Annual Tuition Fee: Php 188,881
Estimated Tuition Fee After 18 Years (10% annual increase): Php 1,050,162
University of Santo Tomas
Estimated Current Annual Tuition Fee: Php 89,041
Estimated Tuition Fee After 18 Years (10% annual increase): Php 495,063
University of the Philippines
Estimated Current Annual Tuition Fee: Php 49,000
Estimated Tuition Fee After 18 Years (10% annual increase): Php 272,435
Although the data above are just projections, they give you an idea on how much money you are going to shell out in the future to enroll your kids in school. Take note that miscellaneous fees and the usual “baon” + project/assignment expenses are not yet included in the calculation. I do not guarantee the accuracy of the data presented above and they may change from time to time.
Variable Universal Life Plan as an Educational Plan
A variable universal life plan is a life insurance plan with investment feature. This can be used as an educational plan for your kids. You are going to save a specific amount every year, for 5 or 10 years to an insurance company (like Sun Life Financial) and in return the insurance company will give you life insurance coverage and invest a portion of your yearly saving to an investment fund of your choice: equity fund, bond fund, balanced fund or money market fund. The investment fund will have the potential to grow through the years or until your child will enroll to college. If your child will not be able to use the college fund for various reasons (like the availability of scholarship), you have the option to let your money stay with Sun Life and grow even more.
How Much Is the Educational Plan?
Well, the higher is your saving/investment, the higher will be your child’s college/educational fund. You can start for as low as 2000 pesos per month depending on your age and goals. If you get an educational plan early (say in your 20s), the lower would be your monthly contribution because age is a big big factor in determining your premium or regular payment. If you want to send your kids to big and famous universities, of course you need to have higher contributions. Request a quote or proposal in this page and don’t forget to indicate your kid’s age in the “message section.” It is FREE to request a quote/proposal, no obligation in your part, just the time you will invest in reading and understanding the proposal.
Insurance Plans For College Funding Needs
5 years to pay life insurance plan with educational fund and other benefits. (Recommended if your child is more than 5 years old)
10 years to pay life insurance plan with educational fund and other benefits (Recommended of your child is less than 5 years old.)
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