New Delhi, July 23 Being a first-time parent is an exciting experience that comes with a whole new set of responsibilities. Sometimes these responsibilities can be both exhilarating and exhausting. Most new parents prioritize planning for their child’s day-to-day needs, but it’s also essential to start planning the roadmap to secure their financial future.
According to a recent HSBC report, 55% of Indian parents still provide financial support to their adult children. This is a very well-placed statistic, making sound financial planning by parents at an early stage essential, which can greatly benefit their children in the long run by helping them achieve their goals such as higher education. , a better lifestyle or an investment in key assets. , among others.
Here are four essentials of financial planning to help ease your future worries and secure your child’s future:
Secure coverage with term insurance: Parents should ensure they have adequate life insurance coverage to support their children as they grow. A term life insurance policy is an excellent choice for this purpose. The term insurance policy will act as a backup plan, helping your family meet basic financial needs or responsibilities if you are unable to do so.
Invest in new goals: Inflation can derail even the best-laid financial plans; therefore, you must invest in financial products that offer long-term returns that exceed inflation. To do this, a solid yet flexible combination of investment and protection can help get you started on the path to creating wealth for your child. Insurance companies offer a variety of plans, and if you want to build a corpus for your child, a combination of a term plan
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