10 Educational Plans in the Philippines Every Parent Should Consider

Rouselle Isla
·15 min read
best educational plans
best educational plans

Sending your child to college may seem unaffordable if you compute all the expenses. Whether you’re planning to enroll your child in a public or private school, education in the Philippines is not cheap.

But there are educational plans available to help you develop a disciplined savings plan that will pay for your child’s education. And there are many life insurance companies offering some of the best educational plans in the Philippines. Let’s explore them in this guide.

What are Educational Plans and How Do They Work?

An educational plan is a savings, insurance, and investment plan that helps parents save funds for their child’s college education.

The savings and investment portion of an educational plan builds up a fixed fund for a certain period, and the insurance portion provides life protection for the payor, usually the parent, during the term of the plan.

Should anything happen to the payor that results in permanent disability or death, the payor or the beneficiaries (in this case, the child) is guaranteed a payout.

Upon the educational plan’s maturity, the payor can use it to pay for the child’s college education.

best educational plans in the Philippines
best educational plans in the Philippines

Are Educational Plans Worth It?

Yes, especially if you want to make sure your child gets a quality education without worrying about the financial burden.

It’s every parent’s dream to see their child finish college. But the sad reality is that not all Filipinos can afford the cost of education in the Philippines.

Furthermore, tuition fees today will not be the same 10 or 15 years from now. Because of inflation, tuition and miscellaneous fees, as well as the cost of goods and services will continue to rise. It can be financially challenging to pay for these things when you’re also growing older and future earnings are not guaranteed. This is where educational plans can help.

Read more: Schools with Highest Tuition Fee in the Philippines

Advantages of Getting an Educational Plan

Educational plans can help secure your child’s education. The sooner you get one, the more affordable the premiums and the higher the payout will be.

You can also add riders to the educational plan to meet your child’s needs. Riders provide insured parties with additional coverage options[1] at an extra cost. Simply put, your child will still be able to go to college even when you’re no longer around.

With an educational plan, you don’t need to worry about where you’re going to get the money to pay for your child’s tuition. Maturity benefits are usually enough to cover your child’s entire college education.

Read more:

Disadvantages of Getting an Educational Plan

Educational plans are not cheap. They usually eat up a huge portion of the family budget, especially if the plan has a lot of riders or add-ons.

Also, educational plans will not cover all the school fees. There will still be things that you’ll need to pay out of pocket, like food and transportation allowance, dorm rent, and other miscellaneous expenses.

And since educational plans are an investment, they also carry an amount of risk. Hence, there’s a chance that you’ll earn more or just receive the face amount, which is the gross total amount stated in an insurance agreement or policy.[2]

Read more: Money Management Tips for Parents This School Season

10 Best Educational Plans in the Philippines

best educational plans
best educational plans

Wondering about the best options out there for securing your child’s college education? If you want to know what the best educational plan in the Philippines is, check out this list of recommendations.

1. Manulife Education Builder

With Manulife’s Education Builder, you can build your child’s education fund by investing in professionally managed funds. It also comes with life insurance coverage that protects your child’s future and covers their college education no matter what happens.

Key Features and Benefits

  • Savings that can fund your child’s college education whether they choose a four or five-year course

  • Extra protection for your investment should anything happen to you

  • Premium waiver or cash support to your child until age 17 in case of your death or disability

  • Flexible payment period and payment modes

Pros: You can choose how much and how long you’ll pay for the plan, as well as how you want to receive the payouts. Depending on your needs, you can also choose the education riders you want to add.

Cons: As this plan is investment-linked, projected returns are not guaranteed and will depend on market conditions.

2. AXA AcademiX

With AXA AcademiX, you can grow and maximize your investment to help pay for the quality education your child deserves. In case of untimely death, your child is also guaranteed to receive cash benefits until they graduate.

Key Features and Benefits

  • Life insurance coverage equivalent to the total amount of money in your policy or five times your annual premium (whichever is higher)

  • Customizable plan according to your child’s educational fund needs

  • Pay for your plan for at least five years to grow your investment and education fund faster

  • Funds are managed by the Metrobank Trust Banking Group

  • Annual education payout

  • Guaranteed payouts to cover education expenses until your child graduates should anything happen to you

  • Bonus amount if your policy is active on the 10th and 20th-anniversary dates

Pros: An educational plan like this can give you peace of mind and security. It’s also flexible enough to meet your needs and gives loyalty bonuses for long-active policies.

Cons: The long-term payment plan may be difficult to commit to. Returns are also dependent on market conditions.

3. AXA Academic eXentials

The AXA Academic eXentials plan is a straightforward and easy-on-the-pocket educational plan that comes with guaranteed benefits. Pay the monthly installment plan for five years and decide when you want to receive the cash benefits.

Key Features and Benefits

  • Can be purchased through an AXA financial advisor or online

  • Affordable premiums starting at PHP 1,500 per month

  • Guaranteed annual education benefit payouts in only five years

  • Guaranteed total cash benefits starting from PHP 124,000

  • Additional yearly cash benefit until scheduled benefit payout in case of untimely death

Pros: It’s an affordable and easy-to-understand educational plan. Therefore, it’s easy to buy. Just pick a plan that you can afford, accomplish the form, settle the payment, and you’re done.

Cons: When it comes to benefits, it offers only the basics.

4. Philam Life Future Scholar

The Future Scholar plan from Philam Life is a life insurance product with an investment component. It offers guaranteed education benefits at affordable premiums starting at PHP 20,000 annually.

Key Features and Benefits

  • Eight semi-annual guaranteed cash payouts starting at age 18 for four years of education

  • Expertly-managed funds

  • Long-term growth potential

  • Plan continuation benefits should you suffer total and permanent disability or if you pass away

  • Option to pay in five years or until your child turns 17 years old

  • Additional option for parents to avail of Philam Life’s term life insurance

Pros: This is an affordable product if you want to ensure your child’s education in the future. It provides life protection and offers guaranteed cash payouts when your child turns 18.

Cons: The issue age for parents is up to 55 years old only. And the PHP 20,000 minimum premium payment is only for annual payment modes. For monthly, quarterly, and semi-annual modes of payment, the minimum premium is PHP 30,000.

Related article: What is the Best Life Insurance in the Philippines?

5. Insular Life Wealth Secure Education

The Wealth Secure Education from Insular Life offers disciplined savings in monthly, quarterly, semi-annual, and annual terms. This helps you build that college fund for your child by receiving more competitive earnings.

Key Features and Benefits

  • Helps you save monthly, quarterly, semi-annually, and annually

  • Allows you to build funds for your child’s high school, college, or postgraduate education

  • Lets you pay for school expenses through withdrawals

  • Offers more competitive earnings than the usual savings instruments

  • Provides financial protection and assures your child’s education no matter what

  • Option to add riders to enhance the plan

Pros: It has a flexible payment plan that will suit different budgets and help you save more.

Cons: This is also an investment-linked plan, which means projected returns depend on market conditions and are therefore not guaranteed.

6. Insular Life Wealth Assure Education

Wealth Assure Education is another plan from Insular Life. This is an investment-linked life insurance plan that can help you build funds to pay for your child’s education.

Key Features and Benefits

  • Helps you build funds for your child’s college education in any field of study

  • Can be used to pay for junior or senior high school, college, or postgraduate studies

  • Withdrawal option when you need to pay for school-related expenses

  • Faster fund growth in a shorter time

  • Financial protection that assures your child’s education no matter what happens

  • Option to add riders to enhance the plan

Pros: It can help grow your money in a short period while also providing you with life insurance protection as you build your fund.

Cons: Like the Wealth Secure Education, this is also an investment-linked plan. Projected returns are not guaranteed.

7. Sun Dream Achiever

This savings plan and life insurance product from Sun Life helps you save up for your child’s education while also giving you and your loved ones financial security. It provides guaranteed cash benefits, so you won’t worry about paying for your child’s education needs in the future.

Key Features and Benefits

  • Life insurance coverage throughout the duration of the policy

  • Option to add riders for additional protection for contingencies (disability, accident, etc.)

  • Flexible premium payment options

  • Available in annual, semi-annual, quarterly, or monthly terms (monthly payments through auto-debit or auto-charge)

  • Personalized payout schedule anytime between the 12th to the 17th year of the policy’s effectivity date

Pro: This is a flexible plan that combines life insurance, savings, and educational plan. A plan like this can help address any kind of financial emergency or need in the future as well.

Con: The long-term payment commitment can be daunting for some Filipinos whose financial capability can change anytime.

8. Sun FlexiLink by Sun Life

This investment-linked life insurance plan allows you to pay for your child’s education while enjoying life protection. It also offers different investment options to help grow your money over time to pay for school expenses and secure your family’s future.

Key Features and Benefits

  • Life insurance benefit equivalent to at least the plan’s face amount

  • Option to add riders for additional protection for contingencies (illness, disability, or accident)

  • Investment fund options depending on your risk appetite and investment goals

  • Professional fund managers to help you grow your money

  • Allows you to build funds for all your future needs, including your child’s education or your retirement

  • Option to make a partial fund withdrawal for emergencies

  • Easy top-ups anytime to increase your fund’s value

  • Loyalty Bonus if your policy is active for at least 10 years

Pros: It’s a flexible plan that you can use not only for your child’s education but also for other financial goals and even emergencies.

Cons: Just like the Sun Dream Achiever, it’s a long-term payment commitment that may not be suitable for Filipinos who prefer short-term payment periods.

9. Sun Smarter Life Elite

This protection and savings plan from Sun Life provides double life insurance coverage and cash benefits, which you can use to fund your child’s education needs.

Key Features and Benefits

  • Life insurance coverage up to age 100 or maturity

  • Insurance benefit worth twice your plan’s face amount

  • Guaranteed cash benefits in your lifetime starting on your plan’s sixth year and every two years henceforth

  • Option to accumulate cash benefits to be available for future needs

  • Living benefits like dividends that you can use for emergencies, paying future premiums, or increasing insurance coverage

Pros: You enjoy lifetime guaranteed cash benefits and living benefits that can be helpful in different financial emergencies or expenses.

Cons: The grace period for this type of plan is only 30 days.

10. PRULink Elite Protector Series

Aside from enjoying life protection, the PRULink Elite Protector helps you save, invest, and build funds faster to meet all your major financial goals, including paying for your child’s education.

Key Features and Benefits

  • Payable in 5, 7, 10, or 15 years in PHP or USD

  • Coverage up to age 100

  • Eligible for applicants aged 7 days to 70 years old

  • Maximum life protection and death benefits

  • Greater potential for wealth accumulation

  • Loyalty bonus for years 11 to 15 that you can use to increase your policy’s fund value

Pros: It’s a flexible savings and investment option if you have medium to long-term financial goals, like funding your child’s college education, purchasing a house, or even building a retirement fund.

Cons: Since this is an investment-linked product, projected returns of investment are not guaranteed. The investment is affected by market conditions. Additionally, if you want to build your funds faster, you’ll need to top up more frequently and pay higher premiums.

What to Look For When Choosing Educational Plans in the Philippines

educational plans in the Philippines
educational plans in the Philippines

1. Payment Option

Educational plans in the Philippines are long-term financial commitments. Getting one means making sacrifices and putting away a certain amount of money to pay for the premiums.

This is why it’s important to get a payment option that matches your paying capacity. Whether it’s monthly, quarterly, semi-annually, or annually, choose a payment plan according to your financial capability.

Also, consider an educational plan’s grace period and reinstatement policies. In case you miss a payment, find an educational plan provider that will help you continue your plan without too much hassle.

2. Withdrawals and Payouts

Insurance providers have different standards when it comes to payouts. Some offer fixed payouts a few years after you purchase the plan or immediately after your plan starts. Others also offer payouts when your child reaches a certain age.

Sometimes, there will be emergency situations that will require you to make a partial withdrawal on your policy. It will be good to have this option on your educational plan as well.

Read more: Study Now, Pay Later: How to Get a Student Loan in the Philippines

3. Riders or Add-ons

Getting an educational plan in the Philippines is already a huge step in securing your child’s future. But if the budget permits, you may also want to avail of additional layers of protection.

Additional benefits like hospitalization, critical illness, disability, accidental death, or premium waivers further ensure that your child will be financially taken care of when you’re no longer around.

4. Fund Growth

Choose a plan that will let your money grow over time. It will allow you to earn more than what you pay for while also giving you a comfortable cushion against unexpected emergencies. It will help you achieve your fund goals faster, too.

5. Educational Plan Tenure

You want to choose a plan that will cover your child’s entire high school or college education, or both, depending on your needs and preferences. The best way to do this is to get an educational plan while your child is still very young (as young as 7 days old) so that you can pay for at least 10 years with premiums that are still affordable.

How to Buy an Educational Plan in the Philippines

Made up your mind about the educational plan you’ll avail? If you’re ready to avail of a policy, here are some important steps to take before you do so.

  1. Choose a school you want your child to attend. After you decide on a school, find out the total cost of education in that school.

  2. Compound that amount with the average increase of tuition and other school fees in the Philippines, which is about 10% year-over-year.[3] This is how much you need to save for your child’s education fund.

  3. Determine how much you can afford to set aside for the plan and how often you want to make your payments.

  4. If you want additional benefits, decide which ones will be most helpful to your child if you’re no longer around.

  5. Shop around for educational plans in the Philippines from different providers and compare packages before making your initial payment.

Read more: How Much Money Should I Save for a Child’s Education?

Final Thoughts

When started early, educational plans in the Philippines can help parents save money. The longer you allow your investments to grow, the bigger the potential returns can be.

Should you fall on hard times and find it hard to pay the premiums, don’t let your policy lapse. You can charge premium payments to your credit card in the meantime. But settle them right away to keep credit card balances from piling up and becoming unmanageable debt.

We hope you’d be able to choose the right product from the best educational plans in the Philippines listed above. Consider your budget, your needs, the insurance provider, and the plan’s benefits. And don’t be afraid to ask questions from your financial advisor so that everything is clear to you.

Related reading:

Sources:

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