ORGANIZED LANGUAGE: EDUCATION PLANNING (SINGLE NEED) DECK

Mr. /Ms. Prospect, let me discuss with

you more extensively how you can
Secure your child’s education.

Every parent has great hopes and

dreams for his/her children, would you
agree? (you can give examples like --
- study in the best schools, be a
world-renowned professional or artist,
own a chain of retail stores, etc), This
is why parents aspire for the best
education for their children.

If the cost of education remains the

same, perhaps your current income
can support quality education for your
children as they grow.

But the challenge for most parents is

not having enough savings to keep up
with the rising cost of quality
education.
Consider the cost of college
education by taking a look at some
schools in the country today. (point to
a sample university that is preferred
by your prospect; highlight that tuition
fees continuously increase over the
years)

Consider the cost of college

education by taking a look at some
schools in the country today. (point to
a sample university that is preferred
by your prospect; highlight that tuition
fees continuously increase over the
years)

Aside from the regular tuition fee

hikes, we must also consider the K to
12 Basic Education Curriculum (BEC)
Program which is now in effect.

As you can see (point to the

illustration), your child now enters
college at age 18, instead of 16.
These extra years equate to higher
and additional education costs, which
requires us to set aside more funds in
order to ensure the best future for our
children.
Let me show you how you can be
better prepared for your child’s
college education. By making your
money earn more, you can build an
education fund for your child and
keep up with the regular tuition fee
hikes.

The secret to building funds for the

future rests on 3 factors: time, money
and interest. When it comes to TIME
– we must start saving as early as we
can. When it comes to MONEY, we
must save as much as we can, as
regularly as possible. And when it
comes to INTEREST, we should find
interest rates that better-than-inflation.

Maximize your time, money and

interest, and you can build that
education fund for your son/ daughter.

Perhaps you’re wondering how much

tuition fee will cost by the time your
child enters college.

In this example, the child is age 1 and

has 17 years to go before college.
The parents estimate the current
annual tuition fee to be 100k in their
chosen university. And we also
followed CHED’s annual rate of
increase of 12.25%. This is what we
will use to project the future value of
college tuition.

Today’s annual tuition fee of 100k will

be equivalent to 713k in 17 years.
This is only good for Yr1 in college, so
then I add the remaining 3 years, still
increasing the tuition fee by 12.25%
each year. That brings the Total
Education Fund needed to 3.4 Million.
So how do we address this gap? Let
me show you some sample solutions
I’ve designed for my clients.
This first one is a 10 pay savings
program which provides an insurance
coverage on the Parent. This is
recommended for Parents who are
still under-insured so that we can
address 2 goals simultaneously. For
an annual budget of 151,440, as
opposed to 251,874 in time deposit,
for 10 years, we can build the
targeted College Fund of 3.4 Mil.
Another advantage of this from TD is
that cash proceeds will be given to
the surviving family should anything
happen to the Parent prior to the child
entering College. The 2 Mil insurance
coverage will not only serve as
income for the family but it will also
augment the value of the college
fund.

Note:
Annual regular premium= 62,440
Annual regular excess premium =
89,000
Additional payments may be required
if fund value is insufficient to pay for
applicable fees.
When Accident and Disability
coverage needs to be expounded:
1. Accident coverage/ ADB
provides an additional benefit
of 1 Mil for the family in case of
accidental death.
2. In case of total and permanent
disability, client does not need
to pay for his premiums and
still, the plan remains in-force.
And lastly, I have here a purely
investment vehicle that offers my
clients higher potential returns. This
best suits parents who are already
adequately covered and want to focus
on accumulating funds. The annual
budget of 126,801.25, as opposed to
251,874 in TD, for 10 years builds the
targeted College Fund of 3.4 Mil at
age 18. You can also make additional
investments anytime and even after
10 years to grow your fund faster and
have more money to spend for your
child’s future.

Now that you’ve seen how we can

close the gap with various Sun Life
solutions, I’m sure you’re curious to
find out how much Education Fund
you will need for your child’s college
tuition. The good news is that I can
calculate this for you very quickly.

Note:
This must be used only by a licensed
Mutual Fund representative

Transition to FNA:

How old is (name of son/daughter)?

At what age will he/she enter
College?
So that leaves us with _____ years to
college.
Would you know how much is the
annual tuition fee in the university
where you plan to send him/her? (If
YES, use their figure. If NO, you can
refer to the CHED table or your
personal knowledge)
What rate of increase would you want
to use --- CHED’s average of 12%,
something higher or lower?

[Compute for future value to get the

Target Education Fund]
So you will need ___________ to
take care of the projected tuition fee
for your son’s/daughter’s college.

Existing Education Funds:

Now it’s time to consider everything
that you have prepared for -- up to
this point. I don’t want to duplicate
what you already have, so I will need
to consider this when I compute for
your Education Fund.
Do you own any education plan,
whether from a pre-need or insurance
company? (If YES) – how much is
the guaranteed maturity benefit you’re
getting by the time your child enters
college?
Apart from an education plan, do you
have any existing savings/investment
(bank deposit, UITF/MF, etc.)
specifically set-up for your child’s
college? (If YES) – what’s the current
value and interest rate? (then
compute for the future value)
Total all existing education funds
[education plan + FV of
savings/investment], and subtract
from the target education fund.

So you still need ___________ to

support the projected college tuition
fee of your son/daughter. And you
still have ___ years to build this fund.

Test Close: Depending on the

budget you can set aside, then I can
compute how much Fund we can
create for your son’s/daughter’s
college in ____ years. If we can’t
create the entire fund with your
savings budget right now, we can at
least get started on it. Whenever your
cash flow improves, you can always
add to your College Fund, and I will
regularly review how you are
progressing vs your Target Education
Fund

Secure Budget:

So what’s an annual savings budget

you can allocate for son’s/daughter’s
college fund?
Make the bright choice today.
- Consult a financial advisor to
help you develop a financial
plan.
- Visit brighterlife.com.ph to
learn more about personal
finance.
- Change your spending and
saving habits to achieve a
brighter life tomorrow.

For advisor’s eyes only