As a parent, you worry endlessly about your child’s safety and wellbeing. “Is everything alright?” “What will s/he grow up to be?” “Am I doing everything I can to give them the best?” are questions that often plague our minds. With things around us changing at a break neck speed, doing enough will never seem to be good enough. Besides wishing for your child’s health, being able to provide your child with the best education is the biggest concern and priority for most young parents today. A good education ultimately, is the best investment for a secured and better tomorrow.
A higher study alone costs anywhere between INR 6 lakhs to INR 50 lakhs depending on the institute and the location. Now, considering the current rate of inflation and the steeply rising cost of education, it is estimated that a higher study that will treble or quadruple after 20 years. So how do we as young parents, prepare for this uphill task without compromising on our current expenses?
One of the best ways to be adequately prepared is – starting young! You need to start thinking about securing your child’s financial future early in life, in order to build a sizeable corpus. Traditionally, most parents looked at financial instruments such as fixed deposits or PPFs to save for their child’s education. However, instruments like these miss out on the critical aspect of inflation when drawing out a financial plan. Savings alone, will then be insufficient to finance your child’s education. These financial instruments work on the assumption that the parent will be present to invest regularly and none of them guarantee funds irrespective of that.
Building a sizeable through financial instruments depends a lot on your health and wellbeing as well, and that’s a constant worry. Insurance, therefore becomes a pertinent tool, which can be used wisely. Insurance is simply – protection to your immediate family if something had to happen to us, to secure dreams and aspirations of our dear ones in our absence.
Child Insurance is an ideal financial instrument to save for your child’s education as it will not only beat inflation, but will also make sure that your child’s professional aspirations are fulfilled. Child insurance policy gives out a lump sum amount at the end of the policy term and ensures that the funds are available to meet his/her professional goals. A child insurance policy acts as a double-benefit instrument. It helps you safeguard your child’s future early on by building a sizeable corpus and gives you the peace of mind that your child’s future is secured irrespective of your presence.