Trying to secure a university education is not easy, as the cost of education is constantly rising.

For example, a degree in Medicine in Singapore today costs approximately S$125,040. In 18 years, the same course will be as high as S$193,913* and S$209,001* in 21 years.

The cost of education is even higher if you plan to send your child overseas. For example, a medical course in Australia costs about S$359,388. It might be as high as S$827,431† in 18 years and S$943,606† in 21 years.

That is why it is important for you to plan early so that university education for your child need not be a financial burden later on. Fixed deposits (FDs) are generally considered “safe” options for individuals with excess cash of up to S$50,000 and above, as they are relatively accessible and fairly liquid. However, the low interest rate environment has resulted in FDs losing their allure.

An alternative would be an endowment plan that is tailored for anyone who has medium term savings in mind.

MaxEdu Plus is a plan specially designed to help you protect and save for your child's future education. It is a flexible education and savings plan, providing cash reserves and life protection, with the assurance of an education fund for your child.

It helps you save in a disciplined and smart manner. By putting aside a fixed amount on a regular basis, you can build up your savings to provide for your child's education.

MaxEdu Plus comes with a choice of terms - 12, 18 or 21 years - as well as whether you wish to collect your benefits, accumulate them at Overseas Assurance Corporation's prevailing interest rates or use them to pay part of the premiums.

To protect your savings goal against any unforeseen circumstance, the plan offers a choice of Premium Waiver Benefit riders. With this rider, you are assured that in the event of Death or Total & Permanent Disability, the remaining premium payments will be taken care of.

You can also choose to receive guaranteed yearly cash benefits from as early as the second year. These cash benefits may be used to offset your child's primary and secondary school expenses.

Here's a simple example to better illustrate the product.

Mr. Wong, who is a 30-year old father taking up MaxEdu Plus for his 3 year old child, He opts for the 18-year plan with sum assured of S$100,000. Mr. Wong will receive S$1,500 cash benefit from the 2nd year increasing by S$500 each year to S$9,000 in the 17th year. Upon maturity, Mr. Wong will receive projected maturity benefit of S$122,355# for his child's university education.

The Yearly Cash Benefit feature of the plan allows you to accumulate the benefits at attractive interest rates (the rate -- which is subject to review - is currently at 3 per cent per annum). You have the option to accumulate or withdraw the yearly cash benefits.

In the event of death during the policy term, the basic sum assured, plus vested bonus, if any will be paid in a lump sum. The policy is terminated on admission of death claim. Bonuses once declared are guaranteed.

As a parent with an eye to the future, you should start early to save for your child's university education, as it clearly helps.

*NUS Undergraduate Tuition Fee (Academic Year 2006/2007) and Singapore Department of Statistics - Mean of 10 years Consumer Price Index (Yr 1996 to 2005 inclusive).

†Tuition fee at University of Queensland, University of Western Australia and University of Melbourne; Australia Bureau of Statistics - Mean of 10 years CPI (1996 to 2005 inclusive).

# This illustration is based on the assumption that the projected investment rate of return is 5.25% p.a. As the bonus rates used for the benefits illustrated above are not guaranteed, the actual benefits payable may vary according to the future experience of the Participating fund.