Education plan in the Philippines: how to fund school and university for your child
School and university costs rise every year, and they arrive on a fixed date. An education plan sets money aside for that date, and it can protect the plan if something happens to the parent paying for it.
This page explains how an education plan works, what to check, and how to start.
How an education plan works
You choose a target date, such as the first year of college, and pay regularly toward it. The earlier you start, the smaller the monthly amount for the same goal.
What it can include
The terms depend on the plan. In general:
- A fund that grows toward the date you need the money.
- Life cover for the parent, so the plan can continue if the parent dies or becomes disabled.
- A choice of how the money is paid out, for example in yearly instalments for tuition.
- Options to invest through funds, depending on the plan.
Start with your goal
- How old your child is now, and when the money is needed.
- The kind of school you have in mind, in the Philippines or abroad.
- What you can set aside every month.
Education plan or savings account
A savings account is flexible, but it is easy to spend. An education plan adds discipline and protection. Some plans invest your money in funds, which can grow more and can also go down, so check the risks.
What to check before you buy
- What you get back if you stop paying early.
- The charges, and how long before the cost eases.
- What happens to the plan if the parent dies or becomes disabled.
- Which funds you can choose, if the plan is investment-linked.
Get help from Crux
Crux Consultants Ph advises on this in Cebu. Book a free 15-minute consultation online or message us on WhatsApp at +63 917 596 5486. An advisor will look at your family, your income and your existing cover, and tell you what to consider first.
Common questions
What is an education plan?
It is a plan that sets money aside for school or university, and can protect that goal if the parent is no longer able to pay.
When should I start?
As early as you can. The earlier you start, the smaller the monthly amount for the same goal.
Can I use it for school abroad?
It depends on how you set up the goal and the plan. Tell your advisor where your child may study.
What if I cannot keep paying?
The rules differ by plan. Some let you pause or reduce, and stopping early can reduce what you get back. Ask before you buy.
Is an education plan investment-linked?
Some are, and some are not. Investment-linked plans can grow more and can also go down, so check the charges and the risks.
How do I start in Cebu?
Book a free consultation with Crux, or message us on WhatsApp. We work backwards from the date you need the money and suggest a plan.
General information only. It is not a quote, and the policy wording decides what is covered.