Preparing for Your Children's Education

Preparing for Your Children’s Education

 By Michael B. Antonio
Wealth Portfolio Manager / Financial Consultant

Ang kinabukasan ng iyong anak, para masigurado, kailangan may plano. That’s why Philam Life has an education and life insurance plan-in-one.

 

With cash benefits, your child can enjoy every semester and life insurance protection for you and your child. Philam Life will help you ensure your child’s education and secure his/her bright future.

Let’s say, you are Age 30 and just gave birth to your first child this year. You chose to get a Philam Life Variable Unit Linked Product in order to prepare for your child’s college fund. Current rates as of 2013-2014 School Year are as follows:

If you plan to enroll your child at University of the Philippines whose current rate is PHP 54,000.00 per Year covering 18 Units, you would need to start saving PHP 5,500 per month.

As you know, PHP 54,000 today is not equal to PHP 54,000 18 years from now! To have a realistic figure, we need to compute its future value given the 15% Increase in tuition fee according to CHED.

19 Years from now, 54k would amount to PHP 668, 274.49; 20 Years would amount to PHP 768,515.67; and 21 years amount to PHP 883,793.02. See the rapid yearly increase in tuition fee and its impact in the distant future. That is why, it’s important to prepare as early as now.

In order to achieve the following College Fund for your child, you would need to start saving PHP 5,504.40 every month through Philam Life’s expertly managed mutual funds. This would give you the leverage to prepare for your child’s college educational fund as compared to your traditional savings and time deposit accounts that offers returns lower than our current inflation rate of 3-5% as of 2013.

To compare your potential returns if you are to invest on a Savings Account, Time Deposit and Philam Life’s Mutual Fund/ VUL Product.

In the following example, if you choose to save and invest using the traditional Savings Account which earns only around 0.25% per Annum, on the 20^th Year (2^nd Year College) you will no longer have enough funds to support your child’s college education.

Same goes with maintaining your investment in a Time Deposit Account that earns around 1.5% per annum. With this option, you will no longer have enough funds to support your child’s second year college tuition fee.

But if we choose to invest in Philam Life’s VUL product, you will have enough funds to support your child’s college tuition fee plus excess funds to support other educational expenses such as boarding, books, laboratories, etc.  On top of that, you also have a Life Insurance Coverage amounting to PHP 900,000.00 to protect your family from any premature and untimely death. Maipagpapatuloy pa din ng iyong anak ang kanyang pag-aaral anuman ang mangyari sa atin!

Paghandaan at pagplanuhan ng maaga ang Educational College Fund ng Inyong Anak.

Anong plano mo? Usap Tayo? 

To know more about this exciting and very affordable plan, text or email me through the following contact details:

Michael Antonio, Wealth Portfolio Manager
Certified Investment Solicitor

Certified Public Accountant 

Email Address: mbantonio.financialadvisor@gmail.com

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