HONG KONG LIFE - Child EducationP.1
In the ever-changing society, our future generation faces
unprecedented challenges
Parents place huge investment on education to enhance their child's
Number of full-time graduates in sub-degree, undergraduate
and postgraduate programmes1
Number of full-time graduates in sub-degree, undergraduate and postgraduate programmes1
22,833
25,444
After 10 years>11%
2013/14
2023/24
How old is your child?
years old
How would you want to light up your child's life?
Source: 1.University Grants Committee
Parents are serious about their children's education for a decent and secure living
An ever-widening salary gap due to education levels
Median salary of people with different education levels in Hong Kong
Degree
Tertiary non-degree
High school
How does your child stand out from the crowd?
Source: 2. Data.Gov.HK : Table 210-06315 : Median monthly employment earnings of employed persons by educational attainment and sex
In an era of "educational inflation", more and more people are
pursuing higher education, so professional degrees are in high demand
High-paying jobs for graduates with bachelor's degree in 2022/23(Yearly salary, HKD)3
Business and management
around $ 295,000
Sciences
around $ 290,000
Medicine, Dentistry and Health
around $ 506,000
Education
around $375,000
Most high-paying jobs are in specialty fields!
Given the keen demand for subjects with good career prospects, are you confident about your child's chosen discipline?
Source: 3. Data.Gov.HK : Average Annual Salaries of Graduates of Full-time UGC-funded programmes who were in Full-time Employment by Level of
Study and Broad Academic Programme Category 2022/23
Study and Broad Academic Programme Category 2022/23
With intense competition, it’s vital to plan carefully for your child's future
Attending Local University
Attending University Overseas
Attending Local University
Good rankings
Some institutes rank high internationally
Worry-free
Child stays close to parents
Lower costs
Save on boarding and flight expenses
Keen demand
Major like engineering and medicine are in high demand
Fewer options
Not enough choices for science, research and innovation subjects
Narrower vision
More limited socialisation and network
Attending University Overseas
Language advantage
Improve foreign language
skills
Diverse options
Better chance of enrolling in desired major
International vision
Opportunity to foster Western thinking and analytical skills
Independence
Nurture self-reliance
Higher costs
Huge tuition, living expenses and flight
Distant parenting
Worries about the child living independently
If cost was not an issue, would you rather your child study overseas or locally?
It may cost you over HK$1 million if studying abroad4
Budget for studying overseas (in HKD)
UK
University tuition/year:
HK$97,000 - HK$252,000
Living cost/year:
HK$93,000 - HK$151,000
Total:
HK$190,000 - HK$404,000
USA
University tuition/year:
HK$101,000 - HK$415,000
Living cost/year:
HK$150,000 - HK$224,000
Total:
HK$251,000 - HK$639,000
Australia
University tuition/year:
HK$110,000 - HK$247,000
Living cost/year:
HK$115,000
Total:
HK$225,000 - HK$362,000
Canada
University tuition/year:
HK$142,000 - HK$399,000
Living cost/year:
HK$54,000 - HK$108,000
Total:
HK$196,000 - HK$507,000
Your child will adapt to living in a foreign country easier at an early age, but this inevitably puts more financial burden on your family.
Source: 4. The major newspapers in Hong Kong
Even if your child chooses to study in Hong Kong, it will still be costly
Undergraduate programmes at 8 UGC-funded institutions
Annual tuition fee: HK$44,500
(Tuition for 2025-2026)
Not including accommodation, textbook and miscellaneous costs
Facing keen competition, only 27% of candidates get into these institutions
In 2023, 48,7005 candidates took the HKDSE, but there were only 15,000 subsidised undergraduate openings available.
That means there are 3.2 candidates competing for every subsidized undergraduate opening.
For local self-funded undergraduate programmes, the costs are even higher
Self-funded undergraduate programmes at non-UGC-funded institutions
Annual tuition fee: HK$82,770 - HK$120,000
(Tuition for 2025-2026)
For a 4-year university education, tuition fees could cost as much as HK$368,568!
Sources:
- The major newspapers in Hong Kong
Inflation adds to the financial pressure on your child
education expense
Inflation increases a child's future tuition fees and living costs, leaving parents with a heavier financial burden.
What do you think the inflation rate is?
%
Suppose the annual inflation rate is only 3% and only
consider inflation factor which means that, an
education costs HK$100,000 today will cost
HK$170,243 in 18 years.
Your child's pursuit of their dreams, the key is to make a
plan early.
A quality education is a life-long gift from parents for the child
How would you prepare financially for the education fund
that's so important?
Bank savings?
- Low interest, low returns
- Cannot hedge inflation...
Stock investments?
- High risks, high returns
- Asset depreciation when the market is down...
Life insurance plan?
- Stable returns with guaranteed cash value
- Sufficient funds ensured for education expenses
- Payor Benefit
Peace of mind
A life insurance plan is indispensable if your child is to study overseas
With the Payor Benefit, premiums payable will be waived if the policy owner dies or becomes disabled, ensuring the child's life insurance and education fund remain unaffected.
The education fund you need to save up HK$:
- Figures above are for reference only and assuming the age of entry to the university is 18.
Case Sharing
Mr. Chow
33 years old, civil servantMarried, with an infant daughter KarenMonthly household income: about HK$80,000
Financial state:- Investment mainly in time deposits and some stocks
Status- Mr. and Mrs. Chow are both civil servants. Mrs. Chow just gave birth to their daughter Karen.
Worries- In view of intense competition in contemporary society, Mr. Chow wants Karen to receive excellent education so she can better cope with future challenges.
Needs- He admires the US education system and hopes Karen will study in the US when she grows up. He needs to prepare an adequate education fund to cover the expenses for overseas studies.
Suggestion- Mr. Chow could consider Hong Kong Life’s life insurance plan and work towards his savings goal to provide for his daughter’s future education.
- This example is not intended to constitute a recommendation or advice. Please do not rely solely on this example to make application decision. Before applying insurance plan, you may also seek independent and professional advice.
Case Sharing
Details of Mr. Chow's plan: Using life insurance plan to prepare his daughter, Karen's education fund
Policy Owner: Mr. Chow
Life Insured: Karen
Principal Amount: HKD2,000,000
Premium Payment Term: 5 Years
Annual Premium: HKD400,000
Total Premium Paid: HKD2,000,000
Total Surrender Value when Karen at Age 20: HK$4,753,534
Close
Accidental Payor Benefit (free)
Regardless of the presence of named and surviving Contingent Policyowner, if the Policyowner dies due to accident or becomes totally and permanently disabled due to accident and loses his/her working ability before the Policyowner's 60th birthday or the Life Insured's 25th birthday (whichever is earlier) for 6 consecutive months or above, premiums payable of the Plan will be waived upon the death of the Policyowner or within the period of disability.
The Accidental Payor Benefit is only applicable to the Policyowner who is Hong Kong resident of age 55 or below and the Life Insured is aged 17 or below at the time of Policy application and within the Premium Payment Term of the Basic Plan. In no event shall the premium waived exceed an aggregate maximum of HKD80,000/ USD10,000 per calendar year in respect of the Policy and all other insurance policies issued by Hong Kong Life from time to time, whether or not still in force, covering the life of the Policyowner for the Accidental Payor Benefit, and any other Accidental Payor Benefit and Accidental Waiver of Premium.
Close
Flexible Wealth Management to Plan for the Future
The Policyowner may make a one-off or regular withdrawal from the cash value of the Policy (including the Guaranteed Cash Value (if any), Accumulated Dividends and Interest (non-guaranteed)(if any) and Terminal Dividend (non-guaranteed) (if any)) according to his/ her needs in order to fulfilling the dreams like children’s education and fruitful retirement, etc. However, the future cash value of the Policy will be reduced accordingly.
After the Policy has acquired a Guaranteed Cash Value, the Policyowner can opt for Partial Surrender to withdraw the Guaranteed Cash Value and Terminal Dividend (non-guaranteed) (if any) attributable to the reduced portion of Principal Amount of the Policy.
Close
Annual Dividend
After the plan is in force for 2 year, the plan may distribute annual dividend, Mr. Chow can choose cash withdrawal or leaving it with the policy for interest accumulation#. This can prepare for unforeseen circumstances, for examples: tuition or living expenses increase due to inflation.
# Annual Dividend and the annual interest accumulation rate are not guaranteed and may be changed from time to time. Past performance is not indicative of future performance. The actual amount received may be higher or lower than the estimated amount. Hong Kong Life reserves the right to change them from time to time. The Annual Dividend and/or interest withdrawn will no longer be accumulated as part of the Total Surrender Value and the Total Death Benefit of the Policy. The Total Surrender Value and the Total Death Benefit of the Policy will be reduced accordingly.
Close
Asset Appreciation
If Mr Chow’s daughter elects to study at a local university instead of overseas and, he chooses to leave dividend with the policy for accumulation, when his daughter is 20 years old, a projected Total Surrender Value is about Hk$4.75 million, which could be used as down payment to buy a home or start a business, laying a great foundation for his daughter.
- This example uses Hong Kong Life's Wealth Accelerator Multi-Currency Plan (Payment Term 5 years) for illustration.
- The policy is automatically terminated when it matures or is surrendered.
- The surrender value is the total of the guaranteed cash value plus accumulated dividends and interest (non-guaranteed)(if any) and terminal dividend (non-guaranteed)(if any), less Indebtedness (if any). The actual amount received may be higher or lower than the estimated amount.
- This example is not intended to constitute a recommendation or advice. Please do not rely solely on this example to make application decision. Before applying insurance plan, you may also seek independent and professional advice.
Contact Us
Plan ahead and let our professional team do an analysis of your financial needs today. Plan early so you can prepare sufficient reserves to provide your child with a quality education and a glorious future.
2290-2882
HongKongLifeCS@hklife.com.hk
Disclaimer
- This promotional material contains general information for reference and is applicable within Hong Kong Special Administrative Region only. It is also governed by the laws of Hong Kong.
- The information provided is based on sources which Hong Kong Life believes to be reliable but has not been independently verified. Hong Kong Life makes no responsibilities nor accepts any warranty or guarantee for the accuracy, completeness and timeliness of the information or for any claims and/or losses caused thereby. Any examples given are for the purposes of illustration only.
- This promotional material is not intended to constitute a recommendation or advice to any prospective customer and is not intended as a substitute for professional advice. Please do not rely solely on this promotional material to make application decision. Before applying insurance plan, you may also seek independent and professional advice before making any decision.
- In case of any discrepancies between the Chinese and English version, the English version shall prevail.
Issued by Hong Kong Life Insurance Limited