1st June is the Global Day of Parents, the perfect opportunity to reflect on the responsibilities of a parent. You might be doing ok financially but are your family protected against those dreaded ‘what if…?’ moments?
A good salary is not a financial plan
Being a parent changes everything. Overnight, we become the protectors of a tiny, vulnerable human, doing our best to shield them from life’s dangers by investing in everything from stair gates and socket covers to car seats and baby monitors.
But while we’re vigilant about physical risks, there’s one area many families overlook: financial protection.
Even if you’re earning well and living comfortably, it’s easy to underestimate how fragile that security can be. A good salary is not a financial plan. Without safeguards in place, the children we work so hard to support could be left vulnerable if life takes an unexpected turn.
Here are three crucial financial protection measures every responsible parent should consider.
Protecting your child’s health
No parent wants to imagine their child facing a serious illness – but for some families, this devastating scenario becomes a reality. While you can’t shield your child from every health challenge, you can take steps to ensure they have access to the best possible care should they need it.
Investing in comprehensive health coverage means your child will benefit from early screenings, preventive care, and, if needed, swift, high-quality treatment that could make all the difference in their recovery. It’s also crucial for parents so they can stay as fit and healthy as possible to be present for their children.
Protecting your child’s lifestyle
Raising children comes with a high price tag. The cost of feeding, housing, clothing, educating, and caring for your children is rising fast. According to a 2023 study the estimated average annual cost of raising a child in the US has climbed to $21,681, a 19% increase from 2016. That adds up to a total estimated cost per child of a whopping $389,000 over 18 years. Ouch!
Now imagine facing that same financial load without your income. What would happen if you were diagnosed with a serious illness and could no longer work?
Critical illness insurance provides a financial cushion in exactly these situations. It helps ensure your family can continue to meet daily expenses and long-term obligations if your health suddenly changes.
In the case of the death of a family breadwinner (even stay-at-home parents), life insurance is the protection you need to ensure that your family doesn’t have to make major lifestyle changes due to the permanent loss of income.
Life insurance is a crucial pillar of any financial plan. If you don’t have any, this article explains how to calculate your needs, and if you do, make sure that you review your cover regularly to avoid gaps which can be created as your life and expenditure evolve.
Protecting your child’s future
It might seem far off, but the baby in your arms today will be starting school in the blink of an eye and heading off to university sooner than you think. And education – whether in international schools or university – doesn’t come cheap.
The sooner you start saving for your child’s education, the more time your money has to grow. Setting up a dedicated savings or investment plan today can make a world of difference later. With a fully funded university education, your child will have the best possible start in life to build their own secure financial future. What a priceless gift!
Financial protection for families made easy!
If you feel there are gaps in your family’s financial protection plan, we’re here to help. Feel free to set up a call to discuss any questions you have with one of our friendly, professional financial advisers.
Infinity has been advising expatriates on securing rock-solid financial protection for their families with health insurance, critical illness and life cover, and education fee plans for more than 20 years. Why not benefit from our experience to ensure that you have every ‘What if…?’ moment covered?
A leading provider of expat financial services and wealth management services across Asia.
