Its a normal low risk education saving plan for children. All the insurance companies provide more or less the same protection and interest. What's important is how the company perform.

The 5% is from the sum insured or total premium paid? Normally it was sum insured which the amount is just half of total premium paid. So actually is was 2.5% which is almost the same or lesser than FD.

Beside that the interest is not guaranteed and only base on historical record. The advantage is, it force u to save with the policy term and good for those who are not discipline of their saving. However, the bad thing is when u having difficulties to commit for the particular policy year or month, either u have to stop the policy or u have to borrow from family or friend to pay the premium.

It was based on the sum assured. But normally not half, its about 2/3 of the total premium paid. For example, premium paid of 150k and the sum assured will be 100k. Based on my experience, the interest rate for normal education plan was 5-7% which means that min is 5% max is 7% for certain companies.

I had to agree with almeizer that education plan was a method to force you to save money. However, please do not or transfer all your money from FD to this plan even if its better interest than FD. It can be used as one of the method to save your money. We must always diversified our money.

Normally the interest is based on the sum insured and not the amount u paid. Rarely see insurance company pay the return or interest based on premium. Maybe u should ask for more details with the agent and read through the policy when u get it. Usually there is 15 days grace period for fully refund. U must make sure it's suit u and u can commit during the policy years.

Last day promotion is the tactic they use to create urgency so that ppl will buy without think too much.

If not mistaken, SSPN return is based on premium and not sum insured.

It's good that you've started a savings plan for your child. A steady return is what you should look for for education savings and 5% sounds good. Returns are usually based on sum assured so it would be good for you to check on that policy document again to be sure.

Like Almeizer says, it could be a case of urgency creation as that usually opens the purse faster.. 

Hehe there was once an insurance agent told me about a 1 day deal as well. The moment he said that, I told him I wasn't interested anymore because I needed more than a day to decide(consult family), then he retract what he said and told me he can process it later because he has friends inside...  

i feel the best method to generate more income is through this method.

1) Save as much in the FD or SSPN.
2) When your child reach 15 years old above to 16 years old, i will teach him business. get him to start small business progressively. Start with Lemonade business. Feel the failure in life and success in life with small investment of RM 2K given to him/her.

3) 17-19 year old. New Business Plan . Investment of RM 5K given to him . Check his progress and see if he can manage his goal.

4) 20-22 years old . this is the time for self discovery. Invest 10K in his hobby and find out his career path. If he can makes the money from his career path, he can fight hard to get the education loan or work part time to reach his goal.

5) 23 - 28 years Should be the best time in the University.

I feel that many students fail to realize their dream and most go into college studying something they dont like. I think starting them older is better and they should be able to value their money and career more.

Really make no sense to save all the money and wasted on your child education when most typical malaysian were mostly preparing the child to enter the university but not letting your bird to explore their real food.

This is probably the best i can think of.
We can save as much as we want but I feel your Child's Desire to turn something into money is more valuable than anything. Teach them about value and burning desire to love Money.

I seen some parent already let their child start their car workshop and modification... they learned through their passion in race car. Now they are CEOs of their own car workshop and even accessories catering to luxurios car.

The money we save also takes years to accumulate than their passion work.