Why is it important to plan your child’s future early

Every parent wishes to see their child blossom to their highest potential in life. Nothing makes a parent happier than seeing their child happy, whether it’s in their professional, personal, or passion. To help nurture their dream and make it become a reality, planning early for their future as a parent is of utmost importance.

In this blog, we will explore reasons why planning early is more advantageous than later so that you can make informed decisions for your child’s future.

Increasing Tuition Fees for Higher Education

In this competitive era, getting into a good college is one of the most important stepping stones in securing your child’s future. While the fees for government colleges are still affordable, the fees for private institutes are rising every year.

These fees are expected to only go up and in 15 years or so, you need to be financially prepared to send them to the best institute. Hence, it becomes imperative to plan early for your child’s future.

Increasing accommodation expenses

While it is important to be mindful of education expenditure, one has to also think of expenses that will be incurred for accommodation. Although most government institutes offer hostel facilities to their students, private institutes may not always offer accommodation.

As with everything else in this economy, prices for accommodation also increase every year. In major cosmopolitan cities, rent can be touching ceilings for a small unit. As a result, parents should carefully budget and plan for these increasing accommodation expenses.

To beat inflation

Inflation can have a significant impact on your expenditure in several ways. For example, the purchasing power of your money lessens as each unit of currency buys fewer goods and services. This means you would have to spend more money to maintain the same standard of living, resulting in increased expenditure.

Similarly, inflation can also erode the value of your savings and investments. If the return rate does not match with inflation rate, you may find that your savings do not have the same purchasing power over time.

To mitigate the impact of inflation, you will need to adjust your strategies and budget accordingly for your child’s future.

For scholarship and financial aid

Many institutes offer scholarships and financial aid, both domestically and internationally. However, to qualify for them, a student must meet certain criteria. Some of the criteria that institutes consider are academic performance, extracurricular activities, internships, etc.

To give your child a higher chance of getting such opportunities, one must prepare early. As a parent, you can research these criteria for sought-after institutes and plan your child’s early education and activities so that they may qualify for financial aid.

To prepare for emergencies

Life comes with its own set of uncertainties and planning your child’s future early can help in making sure that it does not affect them. Emergencies such as loss of job, unexpected high medical expenses, and other unforeseen challenges can disrupt a family’s financial stability.

Investing in wealth plans gives you the benefit of not just life cover, but also wealth creation, and most insurance companies also provide partial withdrawal after completion of a certain time period of the policy year.

This proactive investment ensures that your child can navigate life’s uncertainties with confidence, knowing that their future is secure and well-prepared for whatever may come their way.

To secure their future in your absence

As a parent, you want your child to live a secure life, whether it is in your presence or absence. In case of your unfortunate demise, you can continue supporting them by investing in child plans, such as SUD Life Aashirwaad Plan. Such plans are specifically designed to ensure that the dreams of your child are never compromised. 

Most child plans offer both guaranteed maturity benefits and guaranteed additional benefits. Moreover, in case of your unfortunate demise, your child will receive the death sum assured and as per the policy terms and conditions, the policy may also continue.  

In conclusion, early planning for your child’s future is vital to ensure financial readiness, support their educational and career aspirations, and establish a strong and secure groundwork for their future. Commencing this planning process at an early stage empowers you to maximise time, financial assets, and available opportunities, ultimately paving the way for a prosperous and promising future for your child.

Disclaimer
Star Union Dai-ichi Life Insurance Company Limited is the name of the Insurance Company and “SUD Life AASHIRWAAD” is the name of the plan. Neither the name of the Insurance Company nor the name of the plan in any way indicates the quality of the plan, its future prospects or returns.

SUD Life AASHIRWAAD | UIN:142N053V02 | Individual Non-Linked Non-Participating Savings Life Insurance Plan

Star Union Dai-ichi Life Insurance Company Limited
IRDAI Regn. No: 142 | CIN: U66010MH2007PLC174472
Registered Office: 11th Floor, Vishwaroop I.T. Park, Plot No. 34, 35 & 38, Sector 30A of IIP, Vashi, Navi Mumbai – 400 703 | Contact No: +91 22 7196 6200 | 1800 266 8833 (Toll Free) | Timing: 9:00 am – 7:00 pm (Mon – Sat)| Email ID: customercare@sudlife.in | Visit: www.sudlife.in | For more details on risk factors, terms and conditions, please refer to the sales brochure carefully, before concluding the sale. |Trade-logo displayed belongs to M/s Bank of India, M/s Union Bank of India and M/s Dai-ichi Life International Holdings LLC and are being used by Star Union Dai-ichi Life Insurance Co. Ltd. under license.

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