Are you worried about your child’s future? This is perfectly normal considering the uncertainty regarding Brexit and other factors. However, this should not stop you from making future plans, and if anything thinking ahead is probably the best thing you can do in this financial climate.
By planning in advance, you can help provide them with a great education, a place to live and overall financial security. To help you decide on the best way to secure your child’s future, read these suggestions which are guaranteed to reassure you now and in the future.
Getting family life insurance is a great start to securing yours and your child’s future, as you can name your children and other family members as beneficiaries. This means that if anything were to happen to you, your children would be protected financially, as they will be given the agreed ‘sum insured’, allowing them to live comfortably, go to school, or it can even go towards buying a home or paying off debts.
Taking out this type of insurance involves paying out monthly instalments, which will vary depending on the different insurance options. It is more cost-effective to get a whole life insurance policy, which offers a wide range of protection. For example, if you or your child face a critical illness, a life insurance policy will cover this by offering financial support in a time of need.
Investing in property is one of the most lucrative ways to secure your child’s future, as long as you make smart investments which will guarantee great returns on a long-term basis. This type of investment can be handed down to your child as a form of ready-made income which should continue to grow.
To help you achieve lucrative returns, you should seek advice from property experts like RW Invest, who can help you find the perfect second property in a prime location where there is high demand. They offer several apartment developments in the north-west, where you can find some of the highest rental yields in the UK. By investing in a buy-to-let property, you can increase your savings and also hand over this investment to your child to allow them direct access to a profitable business.
One of the most obvious ways you can achieve financial security is by opening up a savings account for you or your child. You could start up a regular saver account or get a child-specific one instead. Either way, you can capitalise on your original funds, as many accounts add interest amounts of up to 4.5%, so make sure you start up your savings early to get the most out of the added interest.
Another great way to save is through a child’s pension, which can actually be opened as soon as they are born. As the parent or guardian, you must open the account, although, any family member can contribute in order to provide your child with financial security. The difference with this type of account is that it cannot be accessed by your child until they are 55. However, this means they will have a large sum of money waiting for them when they retire.
Disclosure: This is a collaborative post.