Late teens, to early 20s
You are still dependent on your parents to help put you through college or university.
But what happens to your studies if they unexpectedly pass away?
Many parents buy an investment-linked policy for their child so their child has some cash reserves when she graduates. You usually have to continue paying the premiums to get the full benefit of the policy.
Instead of investment-linked policies, please ask our parents to invest in unit trusts or roboadviser funds, as commissions are much lower (1%-3% instead of about 40%, and that’s just the first year) and consequently, the likelihood of a better return is much better.