If you are a parent or if you have been one for a long time now, you must relate to the feeling of uncertainty and unpredictability concerning your child’s future. According to a survey conducted recently, education and subsequent investment in the same are the pre-eminent priorities for Indian parents.
One cannot offer the guarantee of being around forever to take care of one’s children. Buying a life insurance policy provides that warranty, for it not only acts as a financial protection but also encompasses multiple components to satisfy one’s long-term needs. According to the aforementioned survey, every second parent believes that life insurance policies are the most reliable where secure futures are concerned.
Education Costs Rise at an Alarming Rate
As the century gradually heads towards a progressive direction, factors such as global warming, corruption, religious conflicts and poverty continue to grapple with the people of the nation. Amidst all this, the increasing cost of education has become a constant source of worry for Indian parents. Let us take an example in this regard. Within the next few years, the cost of pursuing an MBA degree is expected to shoot up to Rs.1.27 crore from Rs.48 lakh. The need to assess one’s exact requirement in terms of education is expected to grow, after a certain time-frame. This comes with its own set of rationales, because what is worth Rs.50,000 today will be worth Rs.1 lakh tomorrow.
In a crisis situation such as this one, how do parents expect to cope with the increasing cost in education? The answer to this is fairly uncomplicated. All you need is to start investment planning early on for your child’s secure future. Considering the hidden costs involved in education schemes, parents need to apply a more systematic approach to planning savings and investments.
Education loans and personal loans are sound investment options where a child’s future is concerned. The last few years have seen an upsurge in the number of applications for education loans. These loans have relatively lower interest rates when compared with personal loans or home loans. There are additional benefits of taking education loans. There is a certain moratorium period that is offered to borrowers of education loans. This essentially means that the borrower can hold off on the repayment till the course (for which the loan was taken) finishes and they start working.
Saving and Investment Options For a Secure Future
With a plethora of investment and savings options floating in the market today, it should be a hassle-free task to choose just the right one for your child. Parents only need to be prudent enough and use their best discretion to determine which financial product is best suitable for their children. Among the best life insurance policies available in the market today, child life insurance plans have gained the most favor for they not only meet with the primary investment objective but also provide an element of protection to the child in the case of occurence of an unfortunate event. Additionally, this policy also ensures that your planned corpus is available to your child immediately when they turn 18 or 21 years old. This might not be the case with other saving instruments. Product choice, however, depends solely on how much risk the parents are willing to take.
Health Insurance: An Essential for Descendants
Above and beyond life insurance plans and education loans, a planned health insurance is almost like food and water, for they are absolutely vital for a child’s sustenance. Health insurance plans in addition to offering preventive health check-ups also ensure that the child is medically covered during instances of illness. As per the Campaign for Children’s Healthcare, the following points are important to take into consideration while planning a medical insurance for children.● If a child has good medical care, he/she is less likely to miss school and in turn their parents miss fewer days at work.
● A mediclaim policy ensures that the child is properly vaccinated and therefore they (the children) are less likely to contract contagious diseases.
● A child with a health coverage also has the advantage to get small illnesses diagnosed and treated at an early stage before they become endangering altogether.
● Children with planned comprehensive health covers enjoy perks of dental and preventive care as well.
● Overall, a medical coverage effectively makes certain that a child stays physically and mentally fit.A healthy mind and body begets good concentration and attentiveness which ultimately leads to your child outshining in every sphere of their life be it school or extracurricular activities.