The survey was based on an online subjective quantitative method conducted in 11 cities.
Responses were collected from 1,333 parents with children under 10 years of age.
The study showed that the increasing cost of education, from pre-primary to post-graduation, along with parents’ desire to provide the best for their children, prioritized savings for education over other life goals such as marriage or work.
She added that two-thirds of parents surveyed invested in life insurance solutions such as unit-linked insurance plans (ULIPs), refund plans and endowment plans to meet their children’s academic goals.
Although most parents surveyed said they would prefer to save for their children’s college or higher education, 40 percent suggested saving for their education as well. The vast majority of parents have already made a separate provision for their children’s education.
As the pandemic continues to take its toll on job security, business success, physical and mental health, and education, most people have had to cut back on their savings and investments during the pandemic. It also made them reconsider their financial preparedness.
“Saving for their children’s future and milestones emerged as a top priority for parents at 64 percent, along with saving for medical emergencies at 65 percent. This was followed by creating long-term family wealth at 54 percent and building a corp or emergency fund for rainy days at 41 percent” , AFLI said in the survey.
According to the survey, parents consider life insurance a low-risk investment tool and a reliable financial tool to cover the family against any future uncertainties.
Up to 60 percent of parents said they started investing when a child was between 0-3 years old. Two-thirds of them think they are investing enough. However, 1 in 3 parents are unsure of the adequacy of their savings highlighting the need for more financial education and planning.
Refund life insurance plans seem to be the most popular option among parents, consistently across central and non-centralized regions.
As many families have faced the challenges of job loss, salary cuts, uncertain work income, and other financial stresses, parents prefer traditional career paths such as doctor, engineer, teacher, scientist, chartered accountant, mathematician, pilot and defense services as the best career options.
However, the enhanced exposure to digital media and online courses opened their eyes to new professions and fields such as virtual reality designer, YouTuber, gamer, drone pilot, social media influencer, among others.
“The COVID-19 pandemic has affected Indian parents to rethink their financial health and priorities and work towards building a secure family future through wise savings and investments,” said Karthik Raman, Chief Marketing Officer and Head of Product, Ageas Federal Life Insurance. on the survey results.