Many people out there will narrate stories of successful people who didn’t have a proper education but still went on to become the brightest minds in the history of mankind. However, not everybody is Albert Einstein. Most of us have to pursue education to have a successful career. While we do agree that education is becoming expensive year on year, statistics show pursuing quality higher education pays more than basic schooling. Let’s have a look at some figures.
According to a report by a US media company, while a Bachelor’s degree holder draws a lifetime income of $2.27 million, those with a Master’s degree would take home $2.67 million in their lifetime. Those holding a Doctoral degree would rake in a lifetime income of $3.25 million.
Closer to home, a report with Indian subjects reveals that in FY 2011–12, those with basic schooling in India earned 3.3 times lesser than those with a Bachelor’s degree.
Indian families often rely on savings from which a large chunk of money is drawn to pay their children’s tuition fees. A study conducted in the year 2011 by a market research firm revealed that a graduate from a B-school in India who spent a median of INR 5 lakhs went on to earn an annual income of over INR 11 lakhs (if graduating from one of the top 3 B-schools in India) and over INR 3 lakhs (if graduating from other B-schools) as the initial pay.
Clearly, higher education reflects the kind of earnings one makes over a lifetime. Not pursuing education will lead to poor lifetime income.
Skyrocketing school and college fees today may make you think that education is expensive, but not being educated will cost you more in the long run. Pursuing education, especially higher education, is no more a luxury of the rich but a necessity for all to lead a financially-stable life.
Likewise, insurance is the other necessity, the importance of which is not grasped by the common man until it is too late. Like we said earlier, education is expensive, but ignorance will take a higher toll on you. Similarly, yes, insurance is another expense, but a single life-threatening incident such as death or a major accident leading to permanent total disability can take a higher toll on you and your family. It can leave them stranded if you’re the sole earning member and you do not have a financial backup such as a life insurance plan.
Insurance acts as your financial backup in unfortunate times by providing for your family’s financial future and safeguarding your children’s education. Besides, while insurance may be an added expense, premiums of some plans are pocket-friendly and you get considerably high coverage amounts, on which you and your family can rely in times of crisis.
It is therefore advised to not underestimate the importance of education or insurance and instead make them an inevitable part of your life.
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(with inputs from US News, Live Mint and Business Because)