In the ever-changing society, our future generation faces
unprecedented challenges
Parents place huge investment on education to enhance their child's
Rising numbers of full-time undergraduate and postgraduate
degree holders in Hong Kong
Number of full-time graduates in undergraduate
and postgraduate programmes
How old is your child?
How would you want to light up your child's life?
Parents are serious about their children's education for a decent and secure living
Median salary of people with different education levels in Hong Kong
How does your child stand out from the crowd?
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 in 2018 (Monthly salary, HKD)
Dentist
$56,755
Investment Banker
$45,000–$70,000
Resident pharmacist
$39,350
Resident doctor
$56,755
Graduate teacher
$28,865
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?
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 abroad
Budget for studying overseas in 2018 (annual fees, in HKD)
undergraduate system
Secondary school (tuition and boarding fee):
$260,000-$460,000/year
Foundation programme tuition:
$110,000-$200,000/year
University tuition:
$110,000-$250,000/year
Living costs:
About $100,000/year
undergraduate system
Secondary school tuition:
$120,000-$210,000/year
University tuition:
$150,000-$260,000/year
Living costs:
About $100,000-$150,000/year
undergraduate system
Secondary school tuition:
$60,000-$160,000/year
Foundation programme tuition:
$90,000-$140,000/year
University tuition:
$140,000-$200,000/year
Living costs:
About $80,000/year
undergraduate system
Public high school (tuition and boarding fee):
About $150,000/year
Private high school (tuition and boarding):
About $300,000/year
Community college tuition:
Up to $100,000+/year
University tuition:
$100,000-$200,000/year
Living costs:
About $100,000-$120,000/year
undergraduate system
Pathway programme (tuition and boarding):
$130,000-$140,000/half a year
Community college tuition:
Up to $150,000/year
Public university tuition:
$200,000-$300,000/year
Private university tuition:
$600,000-$700,000/year
Living costs:
$100,000-$200,000/year
The most
expensive
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.
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: $42,1001
(Tuition for 2019-2020)
Not including accommodation, textbook and miscellaneous costs
Facing keen competition, only 25% of candidates get into these institutions
In 2018, 59,000 candidates took the HKDSE, but there were only 15,000 subsidised undergraduate openings available.
That means there are 4 candidates competing for every subsidized undergraduate opening.2
For local self-funded undergraduate programmes, the costs are even higher
Self-funded undergraduate programmes at non-UGC-funded institutions
Annual tuition fee: $69,000 - $92,1003
(Tuition for 2019-2020)
E.g. Hong Kong Shue Yan University, Chu Hai College of Higher Education, Hang Seng University of Hong Kong
- JUPAS website
- Hong Kong Examinations and Assessment Authority, Education Bureau, HKSAR (2018)
- Committee on Self-financing Post-secondary Education
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$170,243 in 18 years.
Your child's pursuit of their dreams, the key is to make a
plan early.
A quality education is a life-long gift from parents for the child
How would you prepare financially for the education fund
that's so important?
- Low interest, low returns
- Cannot hedge inflation
- High risks, high returns
- Asset depreciation when the market is down
- Stable returns with guaranteed cash value
- Sufficient funds ensured for education expenses
- Payor Benefit
Peace of mind
A life insurance plan is indispensable if your child is to study overseas
With the Payor Benefit, premiums payable will be waived if the policy owner dies or becomes disabled, ensuring the child's life insurance and education fund remain unaffected.
The education fund you need to save up HK$:
- Figures above are for reference only and assuming the age of entry to the university is 18.
Case Sharing
Mr. Chow
33 year old civil servantMarried, with an infant daughter KarenMonthly salary: about HK$80,000
Financial state:- Investment mainly in time deposits and some stocks
- Mr. and Mrs. Chow are both civil servants. Mrs. Chow just gave birth to their daughter Karen.
- In view of intense competition in contemporary society, Mr. Chow wants Karen to receive excellent education so she can better cope with future challenges.
- 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.
- 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
Payor Benefit
If the policy owner, Mr. Chow dies or due to injury or illness becomes totally and permanently disabled and is unable to continue working at least 6 consecutive months before the age of 60, the payable premium for the basic plan will be waived#, thus ensuring the education fund for his daughter is properly protected.
# Only applicable to the policy owner of aged 18 to 55 (age when applying the plan)
Guaranteed Cash Coupon & Guaranteed Cash Bonus
Guaranteed Cash Coupon
Guaranteed Cash Bonus
Annual Dividend
After the plan is in force for one 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.
Asset Appreciation
If Mr Chow's daughter elects to study at a local university instead of overseas and, he chooses to leave guaranteed cash coupon, guaranteed cash bonus and dividend with the policy for accumulation. The plan matures with a projected Total Surrender Value at about HK$2.5million, 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 No.1 Kid Savings Protection Plan for illustration.
- The policy is automatically terminated when it matures or is surrendered.
- The total surrender value is the total of the guaranteed cash value plus accumulated guaranteed cash coupon(if any), accumulated guaranteed cash bonus(if any), accumulated dividends, and interest (non-guaranteed) (if any), after deducting any outstanding payments (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- 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