UNESCO predicts that ensuring literacy for all students in both developing and developed countries could lift 171 million people out of poverty, potentially leading to significant global economic growth. Many parents strive to provide their children with the best possible education to lay a foundation of stability for their future. That's why we encourage everyone to consider planning for life insurance as an educational legacy for their children with whole life insurance.
Before we delve into planning an educational legacy with whole life insurance, let's first examine the various costs associated with education and understand why it's crucial to plan and manage these expenses effectively.
Education Expenses: A Matter of Planning
Educational expenses are continuously increasing each year, with a trend towards further escalation. Both essential and non-essential education-related costs are also on the rise. As a result, most parents need to exercise careful expense control and meticulous financial planning. The breakdown of education-related expenses for 2024 is as follows:
● Tuition and Fees: For both public and private schools, the average tuition fees have increased by 2.6% compared to the previous year's survey, reaching a total of 24.43 billion baht. This increase is partly attributed to some private schools raising their fees, particularly for new students, due to rising business costs such as personnel salaries and utility expenses.
● Educational Expenses: These include expenses for purchasing school supplies, uniforms, and shoes, which have increased by only 1.9% compared to the previous year's survey, amounting to 2.75 billion baht. This increase is primarily due to higher product prices, while parents are controlling their budgets for school uniforms and opting for those with promotional offers.
● Tutoring, Cram Schools, and Skill Enhancement Courses: These expenses have decreased by 0.7% compared to the previous year's survey, reaching a total of 1.49 billion baht. Some parents have reduced the number of subjects their children take, focusing only on essential ones. When the economic situation improves, parents are likely to enroll their children in more tutoring and skill enhancement courses.
● Other Expenses: These include daily expenses for children attending school, which have remained constant or unchanged from the previous year's survey.
As the above expenses demonstrate, many education-related costs are increasing significantly. Therefore, planning for life insurance as an inheritance for your child becomes even more crucial. Besides benefiting their education, this also offers several other advantages.
Benefits of Establishing Life Insurance as an Inheritance for Your Child
● Provides Financial Security for Your Child: Establishing life insurance as an educational legacy for your child helps create financial stability for their future, especially in the unfortunate event of your premature passing. Having an inheritance in the form of life insurance proceeds ensures that your child can continue their education without worrying about expenses. Moreover, financial security allows your child the opportunity to develop themselves in the future and grow with confidence. This essentially lays a solid foundation for your child's life, both in terms of education and overall well-being.
● Enables Effective Financial Planning: Setting up an inheritance through life insurance helps parents plan their finances more effectively. It can provide your child with funds for education or daily living expenses, without impacting the family's finances in case of unforeseen circumstances.
● Offers Peace of Mind to Parents: Preparing financially in advance through life insurance ensures that your child will receive support for their education and future life. This allows parents to live with peace of mind, knowing their child will be taken care of even if they are no longer around.
● Creates an Emotional Legacy: In addition to creating a financial legacy, establishing life insurance as an educational fund also creates an emotional legacy for your child. The knowledge that they have the support to continue their education, even in your absence, can inspire them to study diligently, develop themselves, and become valuable members of society. Having an educational fund from their parents also serves as a lasting symbol of love and care that they will cherish throughout their lives.
There are numerous types of insurance policies that can serve as an inheritance for your child. Today, we'll focus on whole life insurance as a legacy option and explore its advantages for your consideration.
Whole Life Insurance: A Legacy Option for Your Child
● Long-term Protection: Whole life insurance is a great choice for creating a legacy for your child because it provides long-lasting financial protection, extending throughout the policyholder's lifetime. By securing whole life insurance, you ensure your child receives financial support during crucial times, such as in the event of an unexpected incident involving the parents. The insurance payout can be used to cover ongoing education expenses or other living costs. Additionally, the insurance proceeds can serve as a long-term financial safety net for your child, providing parents with peace of mind knowing their child will have a stable future and can handle unforeseen circumstances.
● Systematic Estate Planning: Whole life insurance also serves as a tool for systematic estate planning, particularly for families with multiple children. Parents can clearly specify how the insurance proceeds or inheritance will be distributed among their children according to their needs and circumstances. This proactive approach helps minimize the risk of family conflicts arising after the policyholder's passing.
Therefore, choosing whole life insurance as a legacy for your child not only provides you with peace of mind but also serves as a way to plan your inheritance and establish a foundation of stability for future generations. Furthermore, it contributes to the overall development of the country's economy. A flourishing economy leads to a better society, providing your children with greater opportunities to thrive and succeed in life.