Should I ensure that my child is insured?

If you’re a parent, the last thing you want to think about is the possibility of your child suffering an illness or injury, or worse, losing their life.

However, as much as you may want to protect your child from any harm, you can never predict what can happen in life.

By ensuring both you and your family are adequately protected, you will have peace of mind knowing that you won’t have to suffer financial pressures during what is likely to already be an emotionally taxing time.

What most people don’t know is that you can protect your children as well as yourself. Child life insurance provides lump sum benefits in the event your child dies, suffers trauma, or is diagnosed with a terminal illness,helping to ease the financial burden that might be caused by sickness or accidentsparticularly those that require extensive medical care or rehabilitation equipment, for example.

As a parent, you may also need (or want!) to take time off work to care for your child, and this would affect your ability to earn an income and continue to pay for day to day expenses.

With children’s life insurance in place, payments could be used to cover costs such as your mortgage and school fees while you focus on your child’s health.

Taking out children’s life insurance is not difficult as many providers include it as an optional add-on to an adult life insurance policy and they typically let you cover multiple children under the one policy.

Most insurance providers do not require medical tests for this type of insurance, and the cost of child insurance is typically cheaper than adult insurance.

Once your child reaches a certain age, there is the option to have them transition into an adult policy with the same provider.

Before considering insurance for your young ones, you should look at your overall financial picture and see if it makes sense financially to purchase life insurance for your children.

It’s important to do your research, with policies varying across providers. Speak to your local FinChoice adviser. They can provide expert advice and walk you through your options to help you make better choices for a better life.

Posted in: Insurance