3rd October 2023, Colombo. Every parent aspires to provide the best possible education for their children and to fulfil their hopes and dreams. Considering the rising cost of education, parents have to have a plan in place for being able to afford higher education or for sending the child to a university overseas when the time comes. However, it can be confusing even for adults to identify the best savings plan for their child’s future. This is where child insurance plan comes in which ensures protection and to save for your child’s higher educational aspirations.
In the Sri Lankan insurance market, the importance of having coverage is critical given the rupee devaluation, high inflation and rising cost of living. In such a stressful climate, sending children abroad for higher studies could remain a pipe-dream. However, when parents purchase an education insurance policy, they secure their child’s dreams for their careers.
Education insurance policies enable you to invest a particular amount of money which comes in very useful years later when you have to finance your student’s education within the country or overseas, thereby protecting the parent too from having to cough up a large sum at one time. The uncertainties witnessed during the economic crisis brought home the need for financial planning for the long term.
Educational costs in particular can be crippling and the unfavourable exchange rate means sending your children to their dream universities overseas will be a challenging task financially, putting the family under financial strain – unless of course you have been forward thinking and purchased education insurance. Some of the benefits of an education insurance plan are: in case of untimely demise and disability of the parent, the insurance company continues to pay your premiums on your behalf, ensuring that your child will receive the education fund you planned for in your absence; unique dividend system ensures that your fund grows continuously, providing a substantial education fund at maturity; and a Life cover for your child. The educational fund for your child will grow with the accumulation rate the company declares on a monthly basis. At the end of the term the policyholder can obtain the fund as a lump sum and utilize it for their child’s university education.
In today’s highly competitive world, children need a competitive edge and foresight of parents to invest in education plans for their children when they are young which will help them in fulfilling their career aspirations. It’s the best gift that parents can give to their children. In order to raise awareness on education plans, the Insurance Association of Sri Lanka (IASL) the representative body of the insurance industry in the country, invites parents to look for the most suitable education plans for their children to invest and secure their future. There are a range of products in the insurance market from which parents can select and this would be the best way parents can celebrate their Children.
Benjamin Franklin once said, ‘An investment in knowledge pays the best dividends’.
