written by KCLau @ KCLau’s Money Tips
This articles analyze the bestselling education endowment plan by Great Eastern Life Assurance (Malaysia) Bhd. – the GREAT EDUPLANNER
Introduction
I had previously posted reviews on three of the bestselling insurance plan by Great Eastern:
Greatlife Portfolio Insurance
Supreme Livin’Care Plus
Great Junior Advantage Series 2
This article is part of my Great Eastern Product Review series that research a product a day during this week. Through the review published here, I hope you will have a better understanding of the different kinds of insurance plan that caters for different needs. We will learn about the traditional education plans today.
Plan Description
Great Eduplanner is a limited premium payment Endowment Assurance participating in the Compound Reversionary Bonus system. Three types of policy terms and premium payment terms are available as follows.
Figure 1: Policy terms and premium payment terms of Great Eduplanner
For a 15 years Great Eduplanner, policyholder only need to pay premium for the first 10 years, and get the maturity benefit at year 15th. I normally advise my clients to get the 15 years term Great Eduplanner because nowadays, children go for tertiary education as early as age 17. If you get a plan that is longer than 18 years, it’ll probably miss the initial years when the funding is needed for education fees.
Plan Benefits
1. Death & TPD benefits – basic sum assured will be payable to the policy owner.
2. Compound Reversionary Bonus (CRB)
The Compound Reversionary Bonus (CRB) that would be declared may be more or less, depending on the operating and investment results experienced by the Company. The CRB declared in the first three years will only be vested after the policy has been in force for three full years.
Figure 1: Details on the projected CRB
3. Maturity Benefit
Basic Sum Assured, Accumulated Compound Reversionary Bonus (if any) and Terminal Bonus on Maturity (if any) are payable on the Life Assured’s survival to maturity date of the policy. This is the total education fund you are going to save for your child.
4. Terminal Bonus Rate (Not guaranteed)
Figure 2: Terminal bonus calculation
Buy a Great Eduplanner for your Child if….
1. You are looking for a saving plan that will self-complete when you are unable to save anymore due to 3D (death, diseases, disability)
2. You want to take advantage to claim the tax relief given by government on education insurance plan. Make sure that the payer benefit rider is attached.
3. You wants a saving plan that provide average return without being exposed to investment risk.
Example of Sales Illustration
Child age 1, Father age 30 as payer, Sum assured RM100,000, premium RM10645.00 p.a. , term 15 years.
Figure 3: A sample of 15 years Great Eduplanner sales illustration generated with GELSIS 4.27
The quotation has 8 pages. If you are interested to read the quotation illustration in details, please contact me and provide relevant details such as date of birth, gender and budget.
In summary, the policy holder pays premium of RM10,645 p.a. for the first 10 years, wait another 5 years and he will get the maturity benefit projected in the range of RM135,067-RM159,662.
Figure 4: Line Chart showing the value of Great Eduplanner
Red Line – death benefit
Green Line – cash value
Blue Line – premium paid
Summary for Action
Great Eduplanner is a very simple plan. All you have to commit is the first 10 years premium. In return, you will get:
- maturity benefit that serves as your child’s education funds
- if something happens to you (3D) , your child will still get the money at maturity
- if something happens to the child, you will get the death benefit (value shown by red line in Figure 4)
- for the premium paid, you can use it to claim for tax relief. This is a big saving if your tax bracket is high.
Tomorrow, I will show you a very old plan from Great Eastern which is still available for sale now. Stay tuned!
30 replies to "Great Eduplanner: Education Endowment Insurance Plan"
Dear Sir,
I have already been having this policy, byt I started this in year 2008, and my policy ends in 2023, but i will be pursuing my tertiary studies next month, can I claim a little of my money for the studies?
There are portion of the cash value that you can take out, without interest or penalty.
Walk in to a Great Eastern branch to get it processed.
Dear KC,
Just to check with you, what will be the best plan you will advice for child saving plan?
Many thanks.
Regards,
Steve
is this plan still available? is it under education insurance? is the payment can be put under education for tax relief?
Is it an education insurance? Is the payment can be put under education for tax relief?
hi KCLau
is it better to fund my child’s education using a unit trust and cover him/her using a insurance policy separately? for the same amount of premium/money paid
thanks for your insight
51 years old. Present medical card do not cover36 critical illness and expiring in July 2012. Intend to buy medical card with 36 critical illness, of course with death total permanent disability benefit, 100k basic protection.
Hi Keng,
If you are comfortable to speak to one of my trusted associates, please contact me through the contact form (look for “contact” tap on the top of my blog).
Or reply any of my email sent to you.
My daughter, 11 years old – looking for medical card, coverage of 36 critical illness, of course with death total permanent disability benefit, 100k basic protection if possible
Date of birth 28 march 64
Need RM 100000 for 7years
Hi, an agent told me that this product no longer exists. is it true?
Hey,
How does the CRB and Terminal Bonus Rate calculated? Is there fix interest for this policy?
Hi..i bought edu plan with sum insured 15k..monthly payment is rm115. if i wish to cancel how much the refund amount coz i already paid for 3years..
Thanks..
Hi, i bought the 20 years plan with 15 years premium to pay too. Is it possible to shorthen it to the 15 years plan with 10 years premium to pay?
thanks in advance.
I am actually looking for a plan which similar from what you decribe. may i know is this product still available?
My daughter age 3 and female payor age 38, may I know what is the premium payable for 15 years plan?
Hi Quah,
The plan is still available. The premium can be as low as around RM1000/year.
It very much depends on your budget.
Don’t hesitate to contact me to arrange an appointment.
I didn’t get good advise when I purchase my edu planner. I bought the 20 years plan with 15 years premium to pay. If I cancel the policy, I will lost about 10k because I have paid 3 years.If I continue, I will only able to get my money when my son reach 20 years, right ? It would be too late if he choose to go private college after SPM. Would I able to surrender the policy earlier at the age of 18 years ? Will I lost too much ? What is your professional advise ?
Hi Ashley,
Don’t worry, you can withdraw part of the policy cash value when your child need it.
For 20 years plan, you can choose to withdraw part of the money before the 20th year. Then get the balance at age 20.
It is not too late though because education fees are required in stages on each semester.
Hi,
What is the effective rate of return for this product ?
about 4-4.5% per annum
Could you advise me on what kind of insurance is the best suit my baby gal who is 5 months old. I need a protection insurance rather than education wise 1st. I prefer to have medical card, coverage of 36 critical illness, of course with death total permanent disability benefit, 100k basic protection if possible. TQ
after reading your need,i think investment linked policies is what you are needed,is combines saving n protection with affordable premium…
[…] Example of endowment education policy: Great Eduplanner: Education Endowment Insurance Plan |Great Eastern Product Reviews […]
if my child is aged 12,which plan should i buy for him??education plan….n any related information n plan 4 us….plz reply…urgent…
Child age 3,female payor age 37 looking for a
flat endownment payment of say 12 years only ,thereafter the policy ceases.
Is there such plan & hw much would my returns be?
@ Vasenthy,
The shortest endowment I know is 15 years in tenure.
Since your child only age 3, it is still not too late to get a 15 years endowment plan.
could you advice me the insurance plus college savings for my baby boy. what the exact amount shall i need to cater his college fees?
if child next age is 3, female parent next age is 34, what is the premium payable for 15 years plan?
The premium is RM1083.95/year for RM10,000 sum assured, assuming both child and parent are females.
[…] Example of endowment education policy: Great Eduplanner: Education Endowment Insurance Plan |Great Eastern Product Reviews […]