Does it make sense to take out life insurance for children?

By | March 22, 2022
“Where there is life, there is life insurance.” This also applies to children, meaning children should also have life insurance. Let’s take a closer look at this. Parents nowadays spend a lot of money on educating their children and providing them with the comforts of life, but when it comes to thinking about the long term future of their children, people push back on their decisions.
It makes sense to give an example here. You must know how to run a marathon. Marathon means long race. The race is slowed down from the start so that the runner’s strength lasts longer. In marathons, running is more important than running fast. In the same way, long-term thinking is needed in raising children. A balanced approach should be adopted instead of spending all in a short period of time to fulfill the desires of the children or to provide them all the comforts. Start setting aside 50% of what you expect to spend on your child for his or her future.
Let’s talk about how that money can work:


One couple suddenly learned that their three-year-old son had a disease called progeria. The disease affects very few people. It can lead to premature aging of the baby. In most cases, the average age of children with progeria is 15 to 18 years. The parents spent all their savings on the child’s treatment and the child lived only 12 years. In addition to the grief of losing a child, it is time for parents to suffer financially. If the child’s life insurance policy had been taken out at an early age, at least financial inconvenience could have been avoided.

Discipline of savings

You can set aside 50% of your savings for a child. You can also add to it every year. In the same way that tuition fees increase every year, you can also increase your child’s insurance. If not one, you can add two years. Instead of waiting too long to insure a large sum for a child, insurance can be taken out from an early age and the insurance cover can be increased with age.

Fixed income at critical age

Life insurance policies can provide benefits to children between the ages of 15 and 6 years at a significant age in terms of education if planned in advance and paid regularly. Knowing that tax-free fixed income is available can free a person from worrying about his financial obligations. At the same time, it can fulfill the aspirations of the children for higher education. You will not remember what toy you gave your child at the age of three, but you will remember the gift you gave him at the age of eighteen.
I know of many life insurance policies for children, but I wonder what it would be like if I insured my children and got the money years later! Also, who will be responsible for paying the premium for the child insurance policy in my absence?
Answer: This question is on the minds of almost all parents. There is no point in taking out a low-cost policy. It is important that you increase your insurance cover regularly. There are two benefits to this. One, you do not have to bear the burden of huge premiums and two, you will also get the benefit of money over time due to continuous increase in insurance cover.
This means that all remaining premiums will be waived in your absence. The cost of getting this rider is not high. The advantage of this is that the child gets full maturity benefit without deducting any amount from the policy. As the child grows older, he should be informed of the policy taken for it. Also, inform your spouse about the child policy and the claim process.

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