Should you consider Children insurance plan as a good option for your child ? If we look at the Insurance market, we can find a plenty of such insurance plan which gives you a lot of option to get maturity benefit, Money back at different interval, death benefit and other different riders. But we feel, before going for any such plan just think why you really need an insurance product for your child.
We primarily believe insurance plan, is to mitigate the financial risk of an individual's life. Say, for an example if I die tomorrow, what will be the financial impact on my family ? And who will be primarily impacted ? If I am the sole earning member of my family, then the risk is higher with my life. Similarly, think how much your child will be affected in case of you or your spouse's untimely death. Think primarily on the Education / Higher Education of your child. And try to estimate how much it will cost after a certain time ( may be 15 or 20 years from now, considering the inflation rate.).
You need at least this amount of money to be safe guarded for your child, in case of your untimely death. So, our opinion is do not go for a children insurance plan, which primarily gives you a death benefit on the child. Rather insure on your own life. This will be a prudent financial planning for your child. It can be through some children insurance plan, which payout lumpsum incase of untimely death of the parents. Or it could be some form of term assurance plan for the parents.
So, in a nutshell - provide adequate insurance coverage for the earning members of the family. And still if you really want to insure for your child, make sure your child has a adequate Medi-claim coverage. If it is not adequate then increase the limit.
No comments:
Post a Comment