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Over 50% of student respondents believe parents should help them
“win at the starting line”
Launch of product Commitment with unique combination of Policy Continuation Benefit and options of choosing two types of beneficiaries
helps parents fulfil children’s goals and commitments
[Hong Kong, July 26, 2018] Sun Life Hong Kong’s latest study on child-rearing themed “Parents Should Realize Children’s Wishes?” reveals that not only parents, but also over half (55%) of student respondents agree that parents should start saving before the birth of their children, helping them “win at the starting line”. Only about one-third of student respondents think that parents should financially support them regularly after the completion of study. However, over half (54%) of parent respondents reckon that children need regular financial support for a period of time after finishing their study.
Sun Life Hong Kong’s child-rearing study themed “Parents Should Realize Children’s Wishes?” was conducted via online questionnaires and face-to-face interviews, and surveyed 690 parents and 141 students from April 12, 2018 to May 6, 2018 in Hong Kong, with a focus on parents’ and students’ expectations and views towards financial management related to child-rearing.
Parenting could be arduous, and planning for the next generation’s future is a never-ending task. Belinda Au, General Manager, Distribution and Marketing, Sun Life Hong Kong Limited said, “Sun Life has been helping our clients to achieve lifetime financial security and live healthier lives so they can realize their life goals at different life stages. We commissioned a research agency to conduct this child-rearing study themed “Parents Should Realize Children’s Wishes?”, which aims to unveil parents’ and children’s expectations and views on saving for children, and to help parents understand the perception gaps between themselves and their children, thereby encouraging them to plan for their children’s future as soon as possible.”
Children wish to “win at the starting line”
“Winning at the starting line” is no longer the golden rule for parents only. According to the study results, over half (55%) of student respondents agree or strongly agree that parents should start saving before children are born, helping them “win at the starting line”. The survey also indicates that 41% of parent respondents had already started saving money for their children’s future before the children were born. Among them, parent respondents aged 45 or above (i.e. the 70s generation) see the lowest ratio (27%). The group with the highest ratio (59%) is the parent respondents aged 34 or below (i.e. the 80s and 90s generations), who have already saved an average of HK$558,844 per child.
Children yearn for independence while parents never stop worrying
According to the results, 62% of student respondents believe that parents should financially support their children regularly until the completion of study. Though about one-third of student respondents think that parents should financially support their children regularly after the completion of study, 83% believe that the level of regular financial support provided by parents after their children’s graduation should be slightly or a lot less than before.
However, “helicopter parents” are pervasive in Hong Kong. 43% of parent respondents agree that parents should provide regular financial support to their children even after their children have started full-time employment, or purchased property. Based on their current social and family situations, 54% of parent respondents believe that their children need regular financial support for a period of time after graduation. Among them, 29% think that they should support their children until they obtain their first full-time job; 10% believe that they should support their children after one-year of full-time employment; 7% reckon that they need to support their children till their children have purchased property.
Betty Lee, Vice President of Product Solutions, Life and Health, Sun Life Hong Kong Limited, said, “Sun Life understands that every client has their unique financial management and protection needs at different stages of life. Since they have their own needs, values, and preferences, Sun Life Hong Kong has launched a new product Commitment to assist parents in planning their children’s future in a more effective and disciplined manner so they can be prepared for any unforeseeable circumstances.”
Commitment is a participating life insurance that offers life protection while building up ample reserves. The product offers a unique combination of Policy Continuation Benefit and the option of choosing two different beneficiaries for Saving Benefit and Death Benefit. It also provides flexibility in its plan mix based on financial status, savings and protection needs. The level of protection and savings can be adjusted by subscribing to two different optional rider benefits, namely Protection Booster and Saving Booster.
Life is full of uncertainties. Commitment’s Policy Continuation Benefit aims to help insurants prepare for unforeseen circumstances. In the unfortunate event that the insured (for example the father being the insured) passes away, the Death Benefit will be paid to the Death Benefit beneficiary (the mother for example). The Policy Continuation Benefit will then activate and the Saving Benefit of Commitment will be paid at the end of the accumulation term to the Saving Benefit beneficiaries (their beloved children for example). In other words, the promise to children made by their parents are everlasting despite any unfortunate events.
Commitment also provides financial flexibility in Saving Benefit, with two types of settlement options. The policy owner can choose the Saving Benefit to be paid in lump-sum at the end of the accumulation term, or by installments within two to ten years after the end of the accumulation term to suit the family’s needs.
Sun Life Hong Kong officially launched Commitment on July 19, 2018, to fulfill parents’ different needs. During the promotional period from July 19, 2018 to October 26, 2018, new policyholders of Commitment can enjoy a 5% rebate on the annualized first-year premium.
About Sun Life Financial
Sun Life Financial is a leading international financial services organization providing insurance, wealth and asset management solutions to individual and corporate Clients. Sun Life Financial has operations in a number of markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of March 31, 2018, Sun Life Financial had total assets under management ("AUM") of CDN$979 billion. For more information please visit www.sunlife.com.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.
Notes to editors
The Commitment plan and promotional offer mentioned in this press release are subject to the terms and conditions. For details, please refer to the policy document and the leaflet of the offer.