Best Education Plans in Singapore for Your Child’s Future

Education is the key to unlocking your child’s potential. However, school tuition and other fees make getting quality education very expensive in Singapore. How can parents plan early and save up a lump sum for this milestone? An education savings plan may be the answer. Read on to learn about the best education plans in Singapore. 

What’s a child education plan and how does it work?

Simply put, an education savings plan is an insurance product that aims to provide funds for your child’s university education by a target time period. Some plans provide regular payouts over a few years, while others pay out a lump sum after a fixed period of time. To fund the plan, you will have to commit to a regular premium, which is the amount you’re saving, for a specific number of years. These savings plans are often capital guaranteed upon maturity, and provide guaranteed and non-guaranteed returns.

Why build an education fund with an education plan?

A savings plan enforces discipline and ensures you set aside a certain amount every month. Since your capital is guaranteed upon maturity, you will never get back less than what you put in. It also provides potentially higher returns than if you were saving in a bank account or in fixed deposits. 

Plans are customizable (time horizon, amount of monthly savings, payouts structure, etc.) so they can suit your specific needs. Finally, in the event of death, disability, or critical illness, the plan will pay out the sum assured so your child’s education will definitely still be provided for. This gives you and your family peace of mind. 

Decide how much to save

Knowing how much you need to save monthly for your child’s university education is the first step. Many websites online offer a savings calculator to help you with your estimations, such as this Education Savings Calculator. 

5 Best Education Plans in Singapore

We did the leg work for you and found the best education plans in Singapore. We hope this helps you in your research and decision making. 

AXA SavvySaver 

Best for flexible policy term and cash payouts 

This plan offers guaranteed cash payouts to meet your goals. With a minimum annual premium (amount saved) of just $1,200 a year, it is highly flexible. You get to choose from a policy term of 15,18, 21, or 24 years. It’s a hassle-free application because there is no medical underwriting required. In addition, there is coverage for death and terminal illness. Moreover, you can always add on optional premium waiver riders in case you want extra protection.  

Education Plan Review

Review from Dollar Bureau:

“The AXA SavvySaver definitely has its pros and cons. As this is mostly a savings plan, the insurance coverage provided by the AXA SavvySaver is expectedly limited.

It is also limited to its 24-year plan, which means that you will have to make yearly premium payments and will not receive a lifetime cash payout.

However, the AXA SavvySaver may be a good fit for you if you think that you will need the liquidity or assurance to withdraw money while generating returns at the same time.

This policy encourages you to save in the short, medium, and long term while offering you the flexibility of making withdrawals.

Furthermore, the basic plan has a hassle-free application as it requires no medical underwriting.

The AXA SavvySaver is definitely great for those who think they might require cash for when they need it."

Features We Love: 

• Receive a steady stream of guaranteed cash payout for up to 5.50% of the sum assured or accumulate the payouts to receive higher lump sum at the end of the policy term.
• Add-on options such as PremiumEraser Total – In the event of critical illness or total and permanent disability (on and before age 70) of the Life Assured, future premiums of the basic policy will be waived.
• Flexible policy term 

Tokio Marine Kidstart

Best comprehensive features

The unique feature of this plan lies in having a wide range of options rather than returns. For instance, there is a premium waiver that covers your child in the event of autism, leukaemia, and severe asthma. When the plan matures, your child can take up a new whole life or endowment plan up to the same sum assured, without having to undergo any medical underwriting. 

If accidental death occurs to the child insured, there is a 150% of sum assured paid out. There’s also a $20,000 sum assured for (unborn) sibling cover at no extra charge. Also, this plan offers premium waivers for both payer and spouse. This is helpful if your spouse were to pass on leading to increased daily expenses to cope with the loss. 

Education Plan Review

Review from Interest Guru:

“Tokio Marine TM KidStart may potentially be a good fit if the following matters to you:

• Liquidity or flexibility of withdrawal in your Insurance policy.
• A hassle-free application without medical underwriting
• Short to medium term endowment and savings plan
• To saving regularly over a period of time
• To potentially generate higher financial returns compared to bank accounts"

Features We Love: 

• Receive 3 payouts which increase progressively over the last 3 policy years – 40%, 45% and 50% of basic sum assured respectively – fully guaranteed, to help cope with rising inflation and tuition fees.
• Sibling cover to offer immediate insurance coverage to the child’s future siblings. 
• Waiver of premium in the event of specific childhood medical conditions.

Manulife ReadyBuilder

Best for long term saving 

This plan is best suited as a long term savings plan as it matures when the policyholder is 120 years old. However, it is also well suited for education savings if you have a 20 year period. This means that couples can purchase such plans even before having kids. It’s flexible as you can withdraw cash anytime, subject to the plan having sufficient and sustainable cash value. 

Education Plan Review

Review from Reddit:

“Readybuilder and like endowment plans serves a really weird purpose as they don’t have a targeted maturity with a breakeven point at 15ish years. It’s for people who want to just save and no aim, but when need money realise their money is locked for quite a while."

Features We Love:

• Wealth accumulation up to age 120 by appointing a loved one as the new life insured 
• Option to pause your premiums in times of need while keeping your policy in force 
• Retrenchment Benefit in the event of prolonged unemployment to keep you financially safe during uncertain times. 
• Withdraw your money whenever you need it to fund key milestones in your life

Manulife Educate

Best for staggered payouts 

This plan gives out two payouts before the selected payout age. For instance, if the payout age is 18, there will be two payouts at the age 16 and 17. Followed by the four payouts from age 18, this plan has six guaranteed payouts in total. The additional payouts are helpful in covering the cost of tertiary education materials such as textbooks or laptops. Do take note that the entry age for this policy is 0-8 years old only. 

Education Plan Review

Review from Interest Guru:

“Manulife Educate may potentially be a good fit if the following matters to you:

• Liquidity or flexibility of withdrawal in your Insurance policy.
• A hassle-free application without medical underwriting
• Short to medium term endowment and savings plan
• To saving regularly over a period of time
• To potentially generate higher financial returns compared to bank accounts"

Features We Love: 

• Helps you save consistently for 10 years. 
• Enjoy two yearly Guaranteed Cash Benefits before the chosen Payout Age, and four yearly Guaranteed Cash Benefits from the chosen Payout Age onwards.
• Get additional protection with premium waiver riders. 

NTUC Gro Saver Flex

Most flexible 

This plan gives you a workable choice of premium and policy terms. You can either make your payment in a single premium or over 5, 10, 15 or 20 years. For single-premium term, you can also use funds from the Supplementary Retirement Scheme (SRS) to pay for your policy. You are also guaranteed acceptance regardless of health conditions. It also provides protection coverage in the event of death or illness. Should you get retrenched and stay unemployed for three consecutive months, you do not have to pay premiums for your policy for six months with the Retrenchment Benefit. 

Education Plan Review

Review from Tree of Wealth:

“Gro Saver Flex is a one of a kind savings plan that allows you to choose your premium and policy terms to best meet your financial needs and receive protection at the same time. With Gro Saver Flex, you can also plan for continuity of wealth accumulation."

Features We Love: 

• Flexible choice of premium and policy terms to meet your lifestyle choices and goals. 
• You may appoint your loved one as a secondary insured so your policy can continue in the event of death of the insured.
• Extra protection with total and permanent disability benefit. 

Comparison table

Here’s a comparison of the best education plans and their details for your quick reference:

Note: Each item and price is up to date at the time of publication. However, an item may be sold out or the price may be different at a later date.

Top Education Savings Plans of 2023

In 2023, some of the top education savings plans in Singapore include:

Aviva’s MyEduPlan

This plan offers guaranteed cash benefits and potential bonuses. It also provides life coverage for the policyholder.

NTUC Income’s VivoChild

This plan provides guaranteed cash benefits and potential bonuses. It also offers premium waivers in case of total permanent disability or death of the policyholder.

AXA’s Early Saver Plus

This plan offers a combination of investment and insurance, allowing parents to potentially earn higher returns while also providing life coverage.

Tips for saving up on education

In addition to getting the best education plans in Singapore, here are some smart tips to help you save better: 

Plan family vacations meticulously and use air miles

The further ahead a vacation is planned, the more affordable it will be. Travel during off-peak seasons to take advantage of cheaper airfare and accommodations. Use air miles credit cards to accumulate miles. Once you’ve reached the rebate cap on a cashback card, place the spending on your air miles card so that you can maximise the points you will earn.

Ask for your parents’ help 

Seek the help of your parents to look after and play with your child. This helps to save on childcare costs, and fosters closer family bonds. It’s not possible to skip on childcare and early childhood enrichment courses completely, but you’ll definitely see some substantial savings being made. 

Shop for secondhand deals 

Secondhand sites like Carousell and eBay will help you save a lot of money, especially on baby equipment  like prams and cots which most people don’t use for long. For items which must be new, try not to buy it at full price. Look for baby fairs throughout the year, and early childhood stores which have ongoing discount campaigns. 

With the best education plans and money-saving tips in place, you now have one less thing to worry about while raising your child. Further read about educational savings here: Best Education Savings Plan Options for Children in Singapore