Tips for buying life insurance for children


Parents need to determine their protection needs, situation and financial goals before deciding to buy life insurance for their children.

With the standard of living is gradually improving, parents are increasingly thinking about buying insurance for their children with the desire to protect them from future risks such as epidemics, accidents while exercising, and ensure a safe future. stable future for them.

For people who are not in the financial industry, choosing an insurance product package for children is not an easy problem. Here are some important factors that parents need to keep in mind before getting life insurance for their children.

Life insurance will protect children from future health and physical risks as well as prepare them for school and career when they grow up. Image: Business Today

Determine your insurance needs

Before making a decision, you need to make an overall assessment, including your current goals, protection needs, and future lifestyle aspirations, not only for yourself but also for your child. In this way, parents will have a suitable financial plan to prepare enough for the child when he grows up.

Assess your financial situation

The financial situation of the family determines the amount of insurance you can pay for the child. Accordingly, parents need to consider choosing a package with a fee appropriate to their financial capacity to be able to maintain and renew the annual contract.

Besides, parents also need to consider with such a payment, the benefits of insurance can meet the medical examination and treatment needs of children at the hospitals that the family often uses or not.

On the other hand, the policy may not be terminated in the event of the death of a parent or guardian due to an accident. Therefore, parents need to plan in advance for their child’s financial needs, so that the child is still guaranteed to receive the expected amount even if the parents are no longer available.

Set financial goals

When the policy matures, the insurance company will return the full amount that the customer has paid the annual premium, plus the profit to pay to the customer, this is called the refund value. When buying child insurance, parents are often interested in the return value, because this will be the money to prepare for their children to go to college, get a job, …

Therefore, parents need to calculate the annual fee payment amount, so that when the contract expires, the child will receive enough money to cover the fees.

For those who have high profit expectations and are willing to accept risks, buying insurance products linked to investment funds is also a reasonable option if the participation period is determined at least. 10 years. With a lower risk appetite, parents may consider choosing a mixed insurance plan.

With the characteristic of a cumulative product, all consultants say that parents should consider enrolling in insurance for their children as soon as possible. Getting started early allows these investments to pay off, leaving the child financially stable later in life.

Le Huy (follow Financial Express, Insurance Dekho)

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