PARENTS should prioritise saving money early for their children’s education.
With increasing commitments, parents need to save smart, and this is where the saving schemes under the National Higher Education Fund (PTPTN) can help parents.
For Chan Cheng Choy, the SSPN-i Plus is a good product for education financial planning as it also comes with additional benefits.
Chan, 48, from Klang, said he and his wife, Song Bin Geat, 45, started depositing money into SSPN-i since 2013 before changing to SSPN-i Plus, which offers takaful protection.
They save RM4,000 every year for their three children — Chan Joey, 16, Chan Chloe, 15, and Chan Joel, 13.
“This will ensure that we are prepared for our children’s further education,” he said.
He said a portion of the savings was contributed to takaful protection.
“For example, for those who chose to commit RM300 per month under SSPN-i Plus, RM270 of it will be saved while RM30 will go to takaful,” he said.
“The coverage includes death and permanent disability, critical illness and hospital allowance,” he said.
Chan said in comparison with loans from banks for education, students have more benefits in terms of repayment.
PTPTN also offers flexibility in terms of payment as students would only need to repay their loans after they have completed their studies.
“PTPTN is also considerate as the students are given time to repay their loans if they are unable to secure job,” he said, adding that repayment would help the future generation secure education loans.
He said there was also tax relief that parents could benefit from by saving for education and takaful. Furthermore, when two parents are contributing, both of them will be entitled for exemption.
Chan was the consolation prize winner of RM2,000 for a 2016/2017 first quarter prize draw during the recent Cabutan Wow! SSPN-i Plus.
Another winner of the same prize was Ravindran Krishnan, 54, from Seremban.
He saves RM100 per month for his three children — Tikcshnapreiya Ravindran, 18, Manojhpriyan Ravindran, 16, and Avaniishpriyan Ravindran, 13. He began saving since the middle of this year.
Ravindran said he saved money for his children, while his wife, Devaka Naraya-nasamy, 51, who works in a bank, looked after the children’s personal insurance needs.
“My children also have a close age gap and will be going to higher learning institutions soon,” he said.
Ravindran said he had confidence in PTPTN because it was a government agency.
Last year, PTPTN introduced SSPN-i Plus, which is an affordable savings scheme with a comprehensive takaful protection after the introduction of SSPN-i.
SSPN-i Plus comes in six packages, from an amount as low as RM30 per month, that covers both savings and takaful.
Among other benefits of SSPN-i Plus are competitive dividends, tax relief of up to RM12,000, insurance coverage of up to RM1 million based on package and no health check-up requirements for takaful protection.
For more details visit SSPN-i Plus site for online registration
Article source: New Straits Times (http://www.nst.com.my/news/2016/12/194275/sspn-i-securing-best-your-kids)