The Sacos Education Plan provides parents with a broad choice on how to plan out the payment for their child’s tuition fees. In the last post, we explored how parents could use the Sacos Education Plan to pay fees for university education. This time we illustrate how parents can pay both the primary and secondary tuition fees on the same plan.
> Go for a 10 year plan
If you plan to use the Sacos Education Plan to pay for both primary and secondary education for your child, your most suitable option is a 10-year plan. Normally, students enter primary school at the age of 6. If you take this plan when your child is born or before they turn 1, you will receive the first payment by the time your child turns 5 years of age.
> Payment schedule
The payment schedule below shows how you can use the yearly payment from the Sacos Education to pay for annual tuition fees for both primary and secondary school. In this example, we assume that you take out a SCR630,000 insurance policy which is sufficient to cover the tuition fees for primary and secondary school, as well as admission fees and other related expenses.
The tuition fees cited below have been estimated based on existing market prices.
| Payment
Schedule | % Payout | Claims Payout per year (SCR) | Primary School year | Annual Tuition Fees (SCR) | Savings made per year (SCR) | Secondary School year | Annual Tuition Fees (SCR) |
| Year 1 | 10% | 63000 | P1 | 45000 | 18000 | S1 | 60000 |
| Year 2 | 10% | 63000 | P2 | 45000 | 18000 | S2 | 60000 |
| Year 3 | 10% | 63000 | P3 | 45000 | 18000 | S3 | 60000 |
| Year 4 | 10% | 63000 | P4 | 45000 | 18000 | S4 | 60000 |
| Year 5 | 10% | 63000 | P5 | 45000 | 18000 | S5 | 60000 |
| Year 6 | 50% | 315000 | P6 | 45000 | 270000 | ||
| Total | 100% | 630000 | 270000 | 360000 | 300000 |
In the example above, every year for five years (Year 1 – 5) you will receive SCR63,000 from your insurance policy. This is enough to cover the annual tuition fees for primary school from P1 to P5
The tuition fees for primary school can go at SCR45,000 per year (SCR15,000 per term). As a result, each year you will make a saving of SCR18,000 from your insurance payout. Savings from Year 1 can also be used for admission fees such as enrolment and deposit fees.
In the last year (Year 6), you will receive SCR315,000 which is 50% of the total sum assured (SCR630,000). From this amount, SCR45,000 can go towards the tuition fees for P6 and the remainder (SCR270,000) towards the payment for secondary school.
Assuming that the annual cost for secondary school is SCR60,000, the total cost of tuition for S1 – S5 is SCR300,000. Using your savings made so far, a total of SCR360,000 (SCR270,000 remaining from Year 6 + SCR18,000 per year from Year 1 – 5), you will be able to meet the full cost of tuition for secondary school using your policy.
Useful tip: It is better to save all remaining amounts from annual payouts in case the cost of tuition rises over the years.
Now, you may be thinking that a SCR630,000 insurance policy is a bit much. It is not. This is what you will be paying in any case after 11 years of paying for your child’s private education. What you are securing with this insurance policy is:
- minimal monthly payments
- cashflow balance
- guaranteed payment and
For more information on the Sacos Education Plan, visit our website https://www.sacos.sc/here-for-you/education-plan/ where you can also request a quote or send an email to life@sacos.sc or call us on 4295000 or visit any one of our branches.
