Posted on: 18th Jul 2019
If it is unanimous that children are indeed the leaders of tomorrow, then the big question is; what are you doing as a parent to secure your child’s future? These little ones (and even the ones who like to refer to themselves as grownups) need all the help they can get. When you look at your early life and reflect on how tough you (probably) had it, there should be a natural desire to ensure that your children don’t go through those same tough times. However, what’s even worse than leaving their future up to fate is not finding and then employing the best ways to secure their tomorrow.
When we talk about securing the future of your children, what kind of securities come to mind? Money? Education? Assets? Businesses? Well, depending on their age(s), these things and so much more come into play. In our previous article, we discussed how to establish futuristic securities for your children through the creation of estates and trusts and so on. Now, that being said, some of the best ways to secure your children’s future is through life some of African Alliance’s Life Insurance policies. This article aims to review two very useful policies to this effect. They include;
The African Alliance Children Education Plan is specially designed to help you give your children the best education out there with the lifestyle that accompanies it. Imagine a world where you are suddenly no more and your children are left to the mercy of fate all because you failed to seize the opportunity to invest in their future. The Children Education Plan by African Alliance allows you to ensure a befitting amount/an agreed sum which the policyholder then pays up in premiums. This plan has a maturity period which will be specified and agreed upon. When the policy matures, the total insured sum and bonuses accrued are all paid.
The interesting thing about this plan is that if the policyholder passes or loses the ability to fend for his or herself and family, 2% of the agreed total sum is paid monthly to the named beneficiary till the policy expires. This means that, no matter what happens, come what may, your child’s future is protected and sealed both legally and financially.
How about policy loans? This plan dictates that after two (2) years within the duration of the cover, you are entitled to policy loans with this plan. As far as the best way to secure your children’s future goes, this remains one of the most astute ways to go about it.
An alternative to the Children Education Plan is A.S.K (African Alliance Smart Kid) Educational Plan. This plan is quite different from the plan discussed above and has its unique benefits as well.
The Smart Kid Educational Plan is what is called a term life insurance policy. It can be purchased for a period of 5 – 20 years. Also, the minimum sum that can be assured using this policy is N500, 000. However, this plan allows you to dictate the exact amount you want to be allocated to a beneficiary in the event of your death. Nonetheless, this policy which is valid for a specified term ensures that the total amount is paid should you outlive the validity period of the plan. It is a plan that is just as beneficial to your children’s educational future as the Children Education Plan but with a unique set of applications.
Some parents grew up battling some extreme conditions, while some others only had to jump over a few hurdles to achieve their dreams or at least be set in the right path towards destiny. Whatever the case was for you, it remains paramount the need to level the playing field or at least influence the odds of your children’s fate as it borders around their future.
Posted on: 9th Jul 2019
You will not get the immortal privilege of living here on earth forever, it is important to come to terms with this. Hence, as parents, you should certainly go ahead to make formidable and foolproof plans for your loved ones (most especially your children). One of the best ways to ensure that your kids do not lack anything is by intentionally and swiftly setting up assets in the form of estates and trusts.
As if coming to terms with the fact that you won’t get to be around forever isn’t enough, parents go through a lot trying to conceive and then subscribe to the best ways to leave behind assets for their kids.
So how do you set up assets/estates for your children? Some of the ways to do this include;
A will is one of the oldest but most efficient ways to leave assets to your children and divide your estate among them. It is a legally binding document stating how your assets will be shared. Some wills dictate in complete detail how assets will be split to the last penny while others can be very brief and straight to the point. A will exists primarily to manage your assets and assigns them to the parties you intend to benefit off of it. However, a will ultimately caters to young adults or at least children who have already come of age.
For children who are minors, setting up a trust would be more reasonable. Children who aren’t up to an age where they can manage their own finances should have trusts set up to their benefit. You can do this by selecting someone you can trust to handle your money on your children’s behalf. The person who could be a family member (or not) is referred to as the trustee and is meant to manage your estate until your children come of age (18 years) or an age specified by you. A parent(s) can set up trust funds with special clauses such as disbursing varying percentages of monies at different ages of their child/children. This is in order to ensure that children/young adults are not overwhelmed by the amount of money passed down when received in bulk.
This works in a very simple way. While you take your time to set up proper and legal forms of estates for your kids, what you can do right away is to assign power of attorney. Power of attorney gives someone expressly appointed by you the power to handle your assets should something happen to you. So whether you are deceased or permanently/temporarily incapacitated, the person assigned with your power of attorney gets to accomplish your bidding and that includes disbursing estates and trusts to your children.
Life insurance is still one of the surest ways of setting up estates for your children. At African Alliance PLC, we have a variety of life insurance policies that encourage setting up estates for your children. These estates are meant to aid your children in all their endeavors and one of such is their education which remains paramount. This is why the Child Education Plan is so important. This plan helps you set aside money for your children’s education (through regular premiums paid) whether you’re alive or not with bonuses guaranteed. Check out this product here: CHILD EDUCATION PLAN.
In setting aside estates for your children, money is always a good place to start. However, assets left in an estate can also include other things like properties, shares and so on and so forth.
Posted on: 8th Jul 2019
Formal education may not be the only way to success, but decades of statistics show that it is still your best bet. Therefore, it is only natural for every parent to desire the best form of education for their children (or wards). However, the reality is that a good education anywhere in the world costs money. Hence, the financial might of a parent(s) is a key contributor when it comes to providing the best education money can buy. This article will explore how life insurance help to mitigate this constraint.
Depending on the school, tuition fees can number from hundreds of thousands to millions. Education may be a necessity for all but the providers of said education also see this sector as a business and hence the usually high-placed fees. In addition, good schools are usually able to match their high fees in value and this doesn’t just come in the quantity or quality of knowledge imparted on the child. These schools also tend to have a solid reputation which can prove to be beneficial when your children eventually graduate and are in need of good jobs to match their good education.
It is not at all uncommon to see or hear parents who wish to award their children with a better education than theirs but as mentioned earlier, this costs money. So how can life insurance help to provide the best education for your children?
Life Insurance and Education.
There is the ‘’how’’ life insurance can be used to secure a good education for your kids, but it is just as pertinent to know the ‘’why’’. We have talked about the need to provide a good education for your children and we have also discussed what it would take – money. But the reason why life insurance is a panacea is simply because of the inevitable. It is a sad truth but it isn’t something we can (and shouldn’t) brush off. We all want to be alive and see our children graduate from the best schools but we cannot rule out the fact that it is possible that you may not be around to witness it. Therefore, without a life insurance policy, all the money you saved up or plan to save up is going to be far from being secure. What this means automatically, is that your children stand a good chance of losing their education should something happen to you.
The Children Education Plan.
The African Alliance Children Education Plan is easily one of the simplest and most straightforward ways to safeguard the education of your children. The big bang about this plan is the fact that not only can you safely plan for your child’s education (by putting money aside in form of premiums), but upon maturity (and while you are still alive) you get paid the accrued bonuses plus the total sum assured. However, in the event of your passing, while the policy is still valid, the beneficiary gets paid 2% of the total sum monthly in addition to the sum assured at the expiration of the policy.
Parents would typically and affectionately seek out the best educational opportunities for their kids. It is quite admirable as this basic parental instinct is more or less a default yearning from deep within. However, as parents, planning for the future also includes planning for a future that may not feature you in it.
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