Raveesh, the most carefree guy we know at Aviva, was in an all-new avatar today. He is just back from his paternity leave, and we couldn’t help but notice the surreal combination of exhaustion yet excitement in his face. With eyes full of hope and happiness, his form is unbeatable- not that of the carefree Raveesh we knew- but a more mature and determined Raveesh.

That’s what a little bundle of joy does. A tiny angel comes to our lives one day and changes everything. From late-night parties to late-night lullabies, your life is filled with love, care, exhaustion, and RESPONSIBILITIES.

We realize that a child comes with a host of financial responsibilities. And with inflation being the red-horned devil, the cost is sometimes overwhelming. According to a Times of India report, currently, the cost of raising a child, from conception to college is around INR 70 lakhs. Considering an inflation rate of 3 percent the prices can go up to INR 1 crore. And just in case inflation were to grow at 6 percent per annum, the prices can go up to a whopping 1.7 crores.

However, we are lucky to be alive in a time that allows myriad ways to earn, save, and invest. We, at Aviva India, simply want you to realize the importance of having a robust financial plan for securing the future of your child. Continuing our discussion forward, here are some financial goals you must-have for your child’s future, and the investments you must make to achieve these goals.

Save for your child’s education cost

As a parent, you would have multiple financial goals for your child’s future. One such goal would be to save for your child’s education. But simply saving for your child’s education is not enough. You also need to ensure that the money you are saving, grows at a pace that helps you keep up with the skyrocketing cost of education.

Solution - Invest in a child plan that not only caters to your needs of financing your child’s education, but it also ensures an uninterrupted education for your child, in case you weren’t around. It’s advisable you invest in a child plan when your child is young. The sooner you start investing, the easier it will be to reach your financial goal.

Prevent a medical crisis from derailing your plans

Health issues don’t play favorites. They can occur to anybody, any time. While we can do a lot to keep them at bay, but owing to the external factors, there’s no way we can guarantee a 100% protection from falling prey to a medical issue. To top it all, the rising medical costs are an even bigger concern.

Solution - To ensure that a health problem does not force you to spend all the savings that you have made for your child’s future, it’s advisable you buy a health plan, for yourself and your loved ones.

Quick Fact - According to a WHO report, nearly 60 percent of deaths in India occur due to lifestyle diseases such as diabetes, cancer, chronic respiratory and cardiovascular diseases. The number is expected to rise with each passing year. It is, therefore, advisable to buy a critical illness plan as a stand-alone policy, or as a rider clubbed with your existing health insurance plan.

Invest today for a regular income in the near future

Besides saving for your child’s educational needs and preparing yourself ‘financially’ for a medical emergency, you need to take care of other milestones, too. For example, you need to save for the down payment of your new house, for a family vacation, for your retirement, and other such important milestones. It is important to save for these goals so that they don’t interfere with the savings you have planned for your children.

Solution - You can achieve this with the help of a savings plan that gives you a guaranteed regular income to pay for recurring expenses such as your home loan EMI, and also a guaranteed lump sum amount that can be used to settle bigger liabilities such as an outstanding home loan.

Ensure the financial security of your family in your absence

As a parent, you want the best for your children. You might have even chalked out a plan for it. But will your plan be able to safeguard the financial goals you have set for your child’s secure future, even in your absence?

Solution - Well, a protection plan (also known as term plan) can help you do just that. It acts as a financial safety net that ensures there's enough to cover for your family’s expenses, right from groceries to medical bills to outstanding home loans, and most importantly the cost of your child’s education.

Take the first step to securing your child’s future!

Unless you set a goal for yourself, you will never get there. So without further ado, take the first step towards securing your child’s future. Set the financial goals that you have for their future. Once you have the goals set, it would be easier for you to come up with a full-proof plan. If you need help, we at Aviva are just a call away. To talk to one of our experts, simply call us at 1800-103-7766.      

Disclaimer: Premium for a healthy male (non-smoker) aged 25 years for a sum assured of Rs. 1 Cr for a term of 25 years (incl. taxes). The daily premium has been arrived at by dividing the annual premium by 365. 

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AN Jun 44/18

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