Save for a child's education

Dear Mr. Tan,

1. In your FAQ: Save For Your Child's Education (http://www.tankinlian.com/faq/child.html), it mentioned that an investment-linked plan gives a better return as compared to an education endowment plan. If I intend to save $150 a month over 21years, what type of plan should I buy to go with a 21 years decreasing term insurance plan? Is it advisable to buy the plans from different insurance company?

2. I read about DIY insurance from the website (http://www.askdrmoney.com/Ins_DIY.htm). May I know what is a "recurring single-premium ILP"?

3. If I intend to DIY for my child's education fund, what plans should I consider?

REPLY
I am disappointed that most insurance companies take away too much of the policyholder's premiums. Read this FAQ:
http://www.tankinlian.com/faq/ilp.html

At one time, I was prepared to recommend the Flexilink or the Ideal (ID7) from NTUC Income. I am not sure if they are still keen to offer these low cost plans. You can ask their business center.

You will have to wait for someone to introduced indexed funds in Singapore. I hope to get a new life insurance company to offer it within the next 6 to 12 months. Read this FAQ:
http://www.tankinlian.com/faq/low.html

In the meantime, it is best to invest in the StateStreet Trakker Fund (i.e. the STI ETF). You have to pay about $3,300 to buy 1,000 shares. Perhaps you can save in a bank account each month and buy this fund when you reach the minimum amount.

A recurring single premium plan is a ILP where you make a large one time investment to start the policy. They allow you to make recurring payments into the plan and be freed of the heavy upfront charge applicable to regular premuim savings.