Sinking your money into a life insurance policy for your kid is not really a good idea nor is it a necessity. Many insurance companies sell these policies saying, if you buy insurance for your kids at young age you will save on the premium and avail very good returns on the long run.
But we are aware that Life insurance in India is generally not an investment instrument, largely because of its high fees structure that drags down the returns. Life insurance coverage plays a crucial role in any family's financial planning. The reason you buy life insurance is because it's one financial product that can replace income if a breadwinner of the family dies. This allows the beneficiaries or family of the deceased to maintain their standard of living as it was earlier. Or even pay off debts on the family.
But this principle of benefitting the family or beneficiary rarely applies to children unless your kid is making enormous money by doing commercials or something else. So to put it right, if your kid dies it would obviously be a personal tragedy and not a financial one. And definitely it makes little sense to devote your money to something that doesn't make it as an investment. And providing life insurance protection for someone who doesn't require it makes no sense. You are not dependent on the earnings of your kid to support your family. So, why should you buy life insurance policy for a kid.
Make sure your finances are in place, the more confusing your financial situation is, it will be difficult for you to give your kid all the good and necessary things like good education, nice home and perhaps a sense of security and stability. You can start building a solid financial foundation in savings account to cover living expenses for several months if possible. This sort of reserve plans will allow you and your family to overcome emergencies such as unexpected medical problems or financial setbacks like layoffs happening in the present scenario. You can also start saving money for your retirements, it will help you manage finances in the old age.
And let's not forget about life insurance for you or your spouse or even family. If you or your spouse is the breadwinner in the family, get sufficient cover. The idea is to have enough coverage so the family can carry on as normally as possible even if you or your spouse dies suddenly. If you still have more money left, then you can begin looking for your kid's future, such as saving for the higher education, health plans, accident risks, etc.
For sure, your kid needs a good and secure life. And you need not waste your money paying the premium of life insurance all your life. Rather use the money to solve other financial issues. As it is life insurance premiums are not very cheap and a good financial planning can help you save time and money. If possible consult a financial expert with your queries.
At policybazaar.com you can compare and buy low premium life insurance Quotes for your young child. You can also compare car insurance quotes, health insurance quotes and travel insurance quotes through policybazaar.
If any help require regarding to insurance you can call to call center to available such special offers at 0124 457 67 77 and also see website: http://www.policybazaar.com/
http://www.policybazaar.com/life-insurance/life-insurance-india.aspx
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