PRUSaver Kid

About your plan

All ages in this table are age next birthday (ANB)

1. This content contains only a brief description of the product and is not exhaustive. You are advised to refer to Prudential Assurance Malaysia Berhad (PAMB)’s Brochure, Product Disclosure Sheet, Sales/Product Illustration, and Fund Fact Sheet (if any), before purchasing the plan, and to refer to the terms and conditions in the policy document for details of the features and benefits, exclusions and waiting periods under the policy.

PROTECTION BY PERBADANAN INSURANS DEPOSIT MALAYSIA (“PIDM”) ON BENEFITS PAYABLE FROM THE UNIT PORTION OF THIS CERTIFICATE/POLICY IS(ARE) SUBJECT TO LIMITATIONS. Please refer to PIDM’s Takaful and Insurance Benefits Protection System (“TIPS”) Brochure or contact Prudential Assurance Malaysia Berhad or PIDM (visit www.pidm.gov.my).

Education can be costly, but it’s necessary for a bright future. Here are some effective steps you can take to plan for your children’s future:

1. Define your time frame by counting the years graduation.

2. Estimate tuition fees. This will vary depending on a number of factors, including the courses your child wants to pursue and whether they are going to study abroad.

3. Once you’ve estimated tuition fees, estimate the amount you need to save.

4. Break down the amount into smaller achievable numbers. I.e. how much will you need to save or invest a month to achieve this goal?

Start saving or investing in an education plan immediately. The sooner you start, the longer you have.

To estimate your child’s tertiary tuition fees, list the present fees and factor in future value. Remember also to add in living expenses. For example, if a degree in business management costs RM30,000 currently and education inflation rate is 6%, the degree will cost about RM45,000 in five years.

There are many ways to save up for your child’s education. The simplest way is to start a savings account. However, savings accounts offer barely any interest and thus, whatever you put in, is the amount you’ll have for your child’s education.

You can also invest your funds for it to grow. However, investing always comes with a risk and thus, it’s wise to diversify your investments and do your research before investing.

Education insurance is another way to ensure that your child has the funds for tertiary education. Although the investment period may be long, it offers relatively stable returns in addition to coverage protection.

An education insurance policy for your child offers the following benefits:

• As you pay the premium, potential bonus payments will be added to the education fund. However, bonus payments vary from plan to plan so do your research.

• Most education insurance policies allow you start saving early on. Thus, you may have over 20 years to save for your child’s education, giving you a significant head start.

• You can enjoy up to RM3,000 tax relief with education insurance purchased for your children.

• Some education insurance policies allow small withdraws, which is excellent if you’re having financial difficulties.