In the Philippines, a new baby is born every 13 seconds based on up-to-date information from Worldpopulationreview.com. To safeguard the future security of your child, you should follow a few proactive steps.
Proper financial and estate planning will make it easier for you to ensure that your child has security later on in life, when you may not be there to love and protect your son or daughter (or children). When you do some planning, you’ll find that your careful and caring preparations are the key to making your child’s life easier for him or her when he’s older.
Invest in a good life insurance policy
National Guardian Life Insurance asserts that choosing an insurance policy with your own child as a beneficiary will be a practical decision which ensures that your child will have some degree of financial stability in the event that you pass away. While none of us likes to think about mortality, anything can happen, and smart parents in the Philippines buy life insurance early on, as a protective measure, for their children’s sake.
Many insurance companies also offer services whereby customers may set money aside to cover end-of-life costs and get money to beneficiaries almost immediately. The Republic of the Philippines offers a list of insurance companies which are government-authorized. Check the list to find a suitable provider.
Create a nest egg for your child
Life insurance is important and so is putting together a nest egg, via a savings account, that your child may inherit. Safe investments serve the same purpose. For example, investing in real estate which is someday passed down to your child may be a great way to build future financial security for your son, daughter or children.
Real estate is often a secure investment, if property is in a desirable location and in good condition. You may also want to consider investing. You may be able to get stable returns from stocks, bonds, annuities, bank products and investment funds, such as mutual funds. Once you create a plan to put together a nest egg, you should consult with a lawyer about estate planning. A good lawyer will help you to maximize your child’s inheritance.
Add money to a college fund
The last step is starting a college fund for your child. How early you begin the fund will impact how much money you add to it regularly. You’ll need to crunch the numbers in order to determine how much should be saved annually, to cover the cost of post-secondary education and related expenses.
Tuition generally increases in cost by ten percent per year, so factor the cost of inflation into your college fund plan. Then, multiply the cost of tuition for a preferred school (with inflation factored in) by the number of years it will take for your adult child to get a degree. Add the cost of related expenses. Once you have a total, divide it by the number of years until your child is eligible to enroll in a post-secondary educational facility. The final number is what you should save each year. It may not be possible to save as much as you should, but you can try your best.
Start planning for your child’s future today
Financial and estate planning for parents may seem tricky. Starting with life insurance, saving and investments will make it all easier. No matter what you financial situation is, you should take the recommended steps to ensure that your child will have a stable financial future. Buying life insurance is essential. Savings, investments and college funds are smart ideas if you can afford them. The earlier you take steps to ensure the future financial stability of your child, the better. Thanks for reading and till next post!