What is the Education Savings Plan?
Education Savings Plan is a whole of life, unit-linked, regular premium policy, which includes death and disability protection for the parents and life insurance for the child.
The plan is specifically designed for parents who want to save towards their child’s higher education.
It includes a Future Premium Protection benefit that provides financial security for the child’s university education and wellbeing, in the event of disability or death of the parents.Our Education Savings Plan helps you save towards a defined amount for your child’s university education fees.
Why choose Education Savings Plan?
- Help you save on a regular basis towards funding your child’s higher education.
- Let you make additional single premiums if you need to.
- Pay 101% of the policy value in the unfortunate event.
- Allow you to make withdrawals to pay for your child’s university education.
What you need to be aware of
- Investing in the Education Savings Plan is a medium to long term commitment. The policy does not have any capital guarantee.
- Investments carry varying degrees of risk. Your policy value may fall as well as rise depending on the Performance
Who does the policy cover?
Education Savings Plan provides insurance cover for the child and the parents.
Child – will be the child life insured under the policy and covered for Child Life Cover.
Parents – will be the parent life insured on the policy covered for life insurance and permanent total disability.
Future Premium Protection benefit
One or both parents can choose to be insured under the policy.
The plan works on a joint-life first claim basis, which means that after the first claim for death or disability, the claim amount is paid and the insurance cover ends.
The parents can be the plan owners on a:
- joint ownership basis taken by both parents.
- single ownership basis taken by one parent.
Age eligibility
When the policy starts
- Policy owners / Parent life insured – minimum attained age of 18 years and less than 70 years.
- Child life insured – from birth up to their 15th birthday.
The Child Life Cover ends when the child reaches age 20
What type of insurance cover does the plan provide?
The Child Education Savings Plan offers additional financial security during the premium payment term with Future Premium
Protection benefit and Child Life Cover benefit.
Child Life Cover benefit
In the unfortunate event of the passing of the child insured under the plan, we will pay the parent an amount of 101% of the policy value, and the policy will end.
The Child Life Cover benefit ends when the:
- Child reaches age 20, or
- End of the premium payment term, or
- Claim under this benefit is paid, or
- Policy ends or lapses.
How long is the policy term?
Education Savings Plan is a whole of life policy, which means there is no fixed length of time that the policy has to be held for. In order to increase the potential for capital growth, this policy has been designed to be held for a minimum of five years.
What are my premium payment options?
Regular premiums
Additional single premiums
Policy currency
Premium payment term
FAQ
Can I make changes to my premiums?
Yes, you can increase your regular premiums at any time.
When can I take out the university education fund?
Once you have completed the premium payment term, you have the flexibility to receive ‘payouts’ for your child’s university education.
Why should I consider a child savings plan?
Child savings plans offer benefits such as disciplined savings, financial protection, flexibility in payouts, potential tax benefits, and the opportunity for higher returns compared to traditional savings methods
How are returns generated in child savings plans?
Returns can be generated through interest earned on savings accounts or through investments in stocks and shares, depending on the type of plan
Contact us today to learn more about insurance options such as family protection insurance in Dubai, retirement planning in Dubai, and keyman insurance in Dubai.
