The survey was based on an online self-administered quantitative method conducted in 11 cities.
Responses were collected from 1,333 parents with children less than 10 years of age.
The rising cost of education, from pre-primary to post-graduation, coupled with the desire of parents to give the best to their children, compares to other life goals such as marriage or career, the survey said. has been given priority.
Two-thirds of parents surveyed have invested in life insurance solutions such as Unit Linked Insurance Plans (ULIPs), refund schemes and endowment plans to meet your children’s educational goals.
Most of the parents surveyed said that they would prefer to save for their child’s college or higher education, with almost 40 per cent suggesting saving for their schooling as well. Most of the parents have already made a separate provision for the education of their child.
The pandemic continues to cast a shadow on job security, business success, physical and mental health and education, forcing most people to cut back on their savings and investments during the pandemic. It asked them to rethink their financial preparedness.
“Saving for their children’s futures and milestones emerged as the top priority for parents at 64 percent, along with saving for medical emergencies at 65 percent. This was followed by long life for the family at 54 percent. Wealth generation for the period and construction of a building was done. The corpus or contingency fund for rainy days is 41 per cent,” AFLI said in the survey.
As per the survey, parents consider life insurance as a low-risk investment tool and a reliable financial instrument to cover the family against any future uncertainties.
At least 60 per cent parents said they started investing when the child was 0-3 years old. Two-thirds believe they are investing enough. However, 1 out of every 3 parents is unsure about the adequacy of their savings which highlights the need for more financial education and planning.
Money-back life insurance plans seem to be the most popular option among parents, consistently in metros and non-metropolitan cities.
As many families have experienced the challenges of job losses, salary cuts, uncertain business incomes and other financial stresses, parents choose traditional career paths such as doctors, engineers, teachers, scientists, chartered accountants, sportsmen, pilots and defense services. are liking. career choices.
However, the expansion of digital medium and online education courses has opened their eyes to new professions and sectors such as Virtual Reality Designer, YouTuber, Gamer, Drone Pilot, Social Media Influencer, etc.
Karthik Raman, Chief Marketing Officer and Head-Products, Ageas Federal Life Insurance said, “The COVID-19 pandemic has made Indian parents to rethink their financial health and priorities and create a secure future for the family through wise savings and investments. Inspired to work towards making it.” on the findings of the survey.