Before our daughter was born, we got sort on an insurance policy for my daughter with Manulife. But the insurance is not just exactly that. It is a variable form of investment that comes with a life and disability insurance.
Now just after her second birthday, I paid the 4th installment to the 20-installment plan that is payable in 10 years. Wow! It seems quite a lot of money for us but I think it will be worth it eventually.
And then just after she was born we just a similar plan but with a smaller coverage with Prulife. So we are paying for two policies for well on top of the two policies that I got when I was still single. I forgot how many years I still have on mine, but I am pretty sure I am still a long way to go.
If you come to think of it, these are items that are listed off as expenses, either annually, semi annually, and quarterly. I made it this way so that the payment schedules are different.
But if you come to think of it, these things are not exactly expenses but investment or forced savings for the future. Since we do earn much, our plans are not exactly big, but at least we have set aside some money for our daughter’s education. We did not get an educational plan per se because plans nowadays are not protected from inflation so they are no longer worth it. We got these investments because for long-term, these have better returns.
I don’t know what my daughter would want to do for your her college education or where she wants to go, like a sixth form college london but at least, there is already some money stashed for her somewhere.