4 Endowment Plans Specially Designed for Your Child’s Education

By Providend Ltd
Aug 21, 2021

Start Planning Early

As parents of young children, while we savour the joy they bring into our lives, we also think about their futures. In particular, their education is the biggest concern and a major financial commitment.

First Decide How Much to Save

Before deciding which product to buy, you must first establish how much you need to save. Make use of DIYInsurance’s special education savings calculator below to calculate how much you need to save towards your child’s university education:

If your child is still very young, it’s pretty impossible to predict where and what he or she will be studying in university, so you might just want to plan for the basic level by selecting ‘non-medicine course’ and ‘tuition fee’.

Endowment policies are suitable for parents who are more risk-averse yet want better returns than what banks give. There are now endowment plans specifically for children’s education, which spread the maturity payout over the university years instead of a lump sum at the end of the policy. Consequently, the projected total payout is usually higher.

The following diagram gives a sample of how much one would need to save in the endowment plan for a child entering university in the next 5, 10, 15 and 20 years. Clearly, the more time you give yourself to save for your child’s education, the less you have to save every month, so it pays to start early.

How much one would need to save in the endowment plan for a child entering university in the next 5, 10, 15 and  20 years

4 Endowment Plans at a Glance

DIYInsurance has identified four good endowment plans specially developed for children’s education. For illustration purposes, we have used the following profile:

Age: 1 year old (next birthday)
Gender: Male
Savings Amount: ≈ $6000 per annum
Premium Duration: 10 years (except for Manulife Scholar (II))

1. NTUC Income VivoChild

NTUC Income VivoChild

2. Aviva MyEduPlan

Aviva MyEduPlan

3. Manulife Scholar (II)

Manulife Scholar (II)

4. Tokio Marine TM Education

Tokio Marine TM Education

Here’s how the plans stack up against each other:

NTUC Income VivoChild

Aviva MyEduPlan

Manulife Scholar (II)

Tokio Marine TM Education

Internal Rate of Return





Premium Duration

5 or 10 years, or policy duration

10 years

Policy duration

5,10 or 15 years

No. of payouts at University years





Additional payouts

At age 7, 12, 16 and 18

At age 16 and 17



Noteworthy Additional Benefits

$100/day Hospital Benefit for HFMD and dengue

How Should You Choose?

  1. Are the returns good?

    Since your objective is savings, getting a good return should be your biggest consideration. All four plans provide projected returns of more than 3.5%, which is considered very good for endowment plans.

  2. Do you need the flexibility for some payouts before university age?

    Think about whether you would like to have the option of small payouts at significant milestones in your child’s education journey to reward him/her with vacations or gifts, and whether you want these small payouts only closer to the university years (Aviva MyEduPlan) or even earlier (NTUC Income VivoChild).

    If you do not need to spend the money, these payouts can always be deposited with the insurer to earn a good interest (around 3%, subject to the insurer’s discretion) and can be withdrawn anytime. Such liquidity is an advantage, but if it is not of paramount importance, you may consider Tokio Marine’s or Manulife’s plans.

  3. How long are you willing and able to pay premiums for?

    Manulife Scholar (II) offers the best returns, but it requires you to save over a longer period. If you prefer to save over a shorter duration, the other 3 plans offer various options to choose from.

Our Verdict

Based on the above example, NTUC Income VivoChild seems to be the most attractive plan, because it offers the flexibility of payouts before university age as well as choice of premium duration, all while offering one of the highest returns of the four.

Do note that the most suitable plan may differ for children of different profiles. Have a chat with one of our experts at DIYInsurance for guidance. Also check out our comparison tool to view a quantitative comparison of the 4 plans and if you buy through DIYInsurance, you will also get back 30% of the agent’s commissions we receive from the insurer, in cash.


  1. This Caluculator is for university education in Singapore.
  2. Medicine study is more expensive than non-medicine courses.
  3. The Calculator assumes a 5-yr course for Medicine study and 4-yr course for Non-medicine study.
  4. The cost of university education can be divided into 2 parts; Tuition fees and Living expenses.
    • The current Tuition fee for medicine course is estimated at $23,000 p.a. and $9,700 p.a. for Non-Medicine.
    • The amount of Living expenses ($12,400 p.a.) is subjective as it depends on the parent’s affordability
  5. The Calculator assumes Tuition fee increases at 6% p.a. and Living Expenses at 3% p.a.
  6. If you intend to use Endowment policy to meeting your Savings goal, please use 3% as a guide.
  7. Most Endowment policies require a minimum Savings period of 8 to 10 years.

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