Author Topic: Education insurance?  (Read 8496 times)

Offline Goddess

  • Baronet
  • ****
  • Posts: 1,076
  • 25
Education insurance?
« on: September 10, 2010, 10:12:23 PM »
Can we get deduction for education policy purchased for our children?
If can is it 100% deductible?

Offline umeshmalani

  • Civilian
  • *
  • Posts: 18
Re: Education insurance?
« Reply #1 on: September 24, 2010, 04:17:16 PM »
yes u can get 100% if the premium is below 5000

Offline Peter Pan

  • Knight
  • **
  • Posts: 139
Re: Education insurance?
« Reply #2 on: March 05, 2011, 08:55:41 PM »
Goddess,

you can get tax deduction if you put some money into PTPTN saving for your child. Even if he/she is like 1 year old. But there is a limit to the amount safe. If you need more ideas on how to save, please PM me i can give you some tips.

P.S I am not trying to sell you something.  :nod: :nod: I just want to earn karma points for myself.

Offline tengster

  • Knight
  • **
  • Posts: 321
Re: Education insurance?
« Reply #3 on: March 05, 2011, 09:13:27 PM »
yes u can get 100% if the premium is below 5000

i think the limit for tax deduction (on disposable income) is RM3k per year.

Offline tengster

  • Knight
  • **
  • Posts: 321
Re: Education insurance?
« Reply #4 on: March 05, 2011, 09:14:20 PM »
Goddess,

you can get tax deduction if you put some money into PTPTN saving for your child. Even if he/she is like 1 year old. But there is a limit to the amount safe. If you need more ideas on how to save, please PM me i can give you some tips.

for SSPN, kindly understand the condition for withdrawal prior to investing on this......

Same limit 3k per year.

Offline Peter Pan

  • Knight
  • **
  • Posts: 139
Re: Education insurance?
« Reply #5 on: March 05, 2011, 09:19:01 PM »
Seriously a better idea of an investment for education is to buy a house or hold blue chip for your kid.. like Public bank, maybank, TNB. Of course you need some rough timing the market..

The days of hold for long term for stocks is almost dead.

Tengster is correct..i just forget what is the limit to the education fund..

Offline tengster

  • Knight
  • **
  • Posts: 321
Re: Education insurance?
« Reply #6 on: March 05, 2011, 09:32:31 PM »
Seriously a better idea of an investment for education is to buy a house

this one is abit technical in a way.

1. it take away your borrowing capacity for flipping purpose
2. during the tenure of keeping the unit, you gotta rent it out and manage the prop plus tenants (which may be good or bad).
3. Additional insurance protection is a must for such purpose. If the parent kicks bucket, the prop is still intact and pay off by insurance protection.
4. must effect a will to manage this part.

Offline Peter Pan

  • Knight
  • **
  • Posts: 139
Re: Education insurance?
« Reply #7 on: March 05, 2011, 09:36:29 PM »
tengster,
i agree property investment has its problem also. Nothing is easy in life..That applies to stock picking also  8)

Some of the older generation scare to play stock or investing..hence the property for long term is considered an investment. Buying land for long term is not a bad idea too..

As long it is better than putting money in FD.


Offline tengster

  • Knight
  • **
  • Posts: 321
Re: Education insurance?
« Reply #8 on: March 05, 2011, 09:38:44 PM »
if you and me and still around, we could manage the prop accordingly, only worst fear is when we kick the bucket, our spouses and kids are not experienced enough to manage the prop......may eventually head for forced-sale scenario.....

then *** keksim...

Offline Peter Pan

  • Knight
  • **
  • Posts: 139
Re: Education insurance?
« Reply #9 on: March 05, 2011, 09:45:36 PM »
Tengster, if buy insurance, we croak but wife and child cannot managed the  :cash: :cash: :cash: ..Money will gone also..then we also keksim in underworld..

The best solution is......drum roll....

1. Get a financial smart wife. Can help you save money and grow money.
2. Educate your child in financial planning. If too young, refer to point 1.
3. In all situation, refer to point 1...

This is Peter Pan idea of NOT LOSING MONEY....hahaha..

Offline Anonymous

  • Civilian
  • *
  • Posts: 68
Re: Education insurance?
« Reply #10 on: March 06, 2011, 09:52:46 PM »
Can deduct up to 3k per year.
It is a good idea. If your tax bracket is 26%, it is like you buy 3k, you already earn 26% return by tax deduction alone.
Which one to buy need some research.
Recently I compared GE, Pru and banks.
As of now, I think Maybank Premier Edu is more advantage. High allocation, 1st yr- 70%, 2nd Year- 90%, 3rd onwards - 100%. (means cost is lower and more money into your fund).

Offline demonlsy

  • Viscount
  • ******
  • Posts: 8,982
  • Do not resist me, Huat now!
Re: Education insurance?
« Reply #11 on: May 28, 2011, 01:25:02 PM »
I think the best way is to invest a some money into blue chip every month for the next 20 years. you will get a better result from investing into those multi cash plan
Just RM 1000 bucks is good enough. if RM 1000 is not enough just make it a quarter then buy 1 blue chips. don't take out the money. and reinvest all the dividen.

if you can get compound interest of 8percent PA. 20 years later you will be getting about 500k liao.

some people might think is risky to hold blue chip. like perhaps when you are buying at RM 10 maybank. and crisis came. then it become 4 is actually wiping out your 60%. buy remember you are investing every month or every quarter. so if the blue chips beocme RM 4 you can actually get more share using the same amount of money at RM 8.

and if you average out 20 years. the crisis that came twice during these 20 years will not impact the final result. even it happen at the 20 years. by look at the historical chart. just give it another 1.5 years it shoudl go back to the normal level

Fear and success go hand in hand. The secret is having the courage to face your fears to accomplish greatness, and letting fear guide you in through all adversity

Offline jerryteh420

  • Civilian
  • *
  • Posts: 39
    • JerryTeh
Re: Education insurance?
« Reply #12 on: May 28, 2011, 01:26:09 PM »
Tengster, if buy insurance, we croak but wife and child cannot managed the  :cash: :cash: :cash: ..Money will gone also..then we also keksim in underworld..

The best solution is......drum roll....

1. Get a financial smart wife. Can help you save money and grow money.
2. Educate your child in financial planning. If too young, refer to point 1.
3. In all situation, refer to point 1...

This is Peter Pan idea of NOT LOSING MONEY....hahaha..

1. Get a RICH wife.
2. In all situation, refer to point 1...
Rich Dad Summary @ my blog jerryteh420.~.com

Offline yanerfei

  • Knight
  • **
  • Posts: 215
Re: Education insurance?
« Reply #13 on: May 29, 2011, 10:48:57 AM »
 :thumbsup: :thumbsup: :thumbsup: :thumbsup: :thumbsup: :thumbsup:

Offline KelvBlue

  • Civilian
  • *
  • Posts: 2
Re: Education insurance?
« Reply #14 on: August 25, 2011, 12:14:57 AM »
Education insurance plan might not provide the best return compare to other investment type, but the powerful part of it is the insurance. There will normally be a rider that can be attached to indirectly cover the payor (you) as well. If you died or obtained critical illness, the premium is waived. That will ensure your precious children will have the money to further their education when they reach the age.