Too Much for Education Funds?

I was talking to a neighbor during a recent gathering last week and he expressed his concern on how he is currently spending almost RM 10,000 per year in life insurance for the whole family, whereby half of it goes to the children’s education.

He has plans to terminate some of the policies because he worries that he might not be able to commit to the payments. All his premiums are paid annualy.

I’m sure many of you out there are also facing the same situation.

I do not happen to be this neighbor’s agent but he just asked my personal advice/opinion on whether he should terminate the education policies for all his 4 children.

My advise is this :

Somehow or rather, every kid needs some cash to enter university. The days of scholarships and handouts are almost gone. I say this because even the students who excel in the SPM today do not get to do the field of their choice (with reference to entering public universities or obtaining a corporate scholarship).

A close example is my youngest brother who wanted to do medicine. He obtained straight A’s for all 10 subjects including Physics, Chemistry, Biology and Additional Math…

With that kind of result 10 years ago,  an overseas scholarship would be guaranteed. if it was 20 years ago, he would be flown to do A Levels overseas even BEFORE the results were out.

But alas, in today’s scenario, it’s even tough to get into a public university to do the course of your dreams. What more in the future?

That is why, no matter how you save, using what ever financial tool that you think is BEST, just DO IT! go out there and START your child’s education fund TODAY !

IF 18 years from now your child is a lucky star and ultra bright student who gets offers from 5 different organizations to sponsor him or her university education, you can by all means keep the fund as a backup. It might come in very handy one day.

Good Luck!

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