Survey: Insurance products are the best financial tools for reaching future goals.
According to a survey, insurance products were the most popular choice for parents as they are considered low-risk, reliable financial tools that can help them reach their future goals.
According to a survey, Insurance products were the most popular choice for savings and investments after the pandemic. They are low-risk, reliable financial tools that parents consider to help them reach their future goals.
FutureFearless was conducted by Ageas Federal Life insurance and YouGov India to assess the impact of COVID-19 on Indian parents’ financial readiness for planning for their children’s education. It revealed that academic savings had trumped other goals.
The survey was conducted in 11 cities using an online self-administered qualitative method.
These responses were collected from 1,333 parents with children under ten.
According to the survey, parents want to do the best for their children. The rising cost of education from pre-primary to post-graduation has led to saving money for education preceding other goals in life such as marriage or career.
It was found that two-thirds (33%) of parents surveyed had invested in life insurance solutions like Unit Linked Insurance Plans, Moneyback Plans, and Endowment Plans to help their children achieve their academic goals.
Nearly 40% of parents surveyed suggested saving money for their child’s schooling, even though most said they would save more for college. Most parents have made separate provisions for their child’s education.
The pandemic continued to impact job security, education, and business success. Most people had to reduce their savings and invest during the epidemic. They also had to reevaluate their financial readiness.
At 64%, parents ranked saving for their children’s milestones and future as their priority. They also ranked saving for medical emergencies at 66%. The survey revealed that long-term wealth creation was followed at 54% and the building of a corpus (or contingency fund) for rainy days at 41%.
According to the survey, life insurance is a low-risk investment tool that can be used to protect their family from future uncertainty.
60% of parents said they began investing when their child was between 0 and 3. A third of parents believe they are investing enough. One in three parents is still determining if their savings are adequate, highlighting the need for better financial education and planning.
Parents consistently choose money-back life insurance plans, regardless of whether they live in metros or non-metros.
Many families face a job loss, reduced income, uncertain business income, and other financial stress. Parents are choosing traditional career options such as a doctor or engineer, teacher, scientist or chartered accountant, pilot, sportsperson, or enlisted in the defense services.
However, increased exposure to digital media and online education courses has opened their eyes to new careers and fields like virtual reality designer, YouTuber gamer, drone pilot, social influencer, and many others.
“The COVID-19 pandemic in India has caused parents to rethink and reassess their financial priorities and work towards building a secure family future through wise savings and investments,” Karthik Rajan, Chief Marketing Officer, Ageas Federal Life Insurance, stated in the survey results.