Why Children Need Life Insurance?

A new member will be in our house soon! Everyone is excited but also debating on life Insurance for kids. Really it is confusing whether a kid needs a life insurance or not?

Life insurance and stem cells preservation is as important for a secured future of a child. It costs money (almost 50k for 25 years) but it has many benefits in long run.

Every one requires life insurance kid or an adult. :)

Its better to take life insurances at small age as premium at small age is less and returns are high. Moreover when the kid comes to an age of 18~20 he/she gets the insured value back which may be highly required at that age. :)

Every one requires life insurance kid or an adult. :)

Its better to take life insurances at small age as premium at small age is less and returns are high. Moreover when the kid comes to an age of 18~20 he/she gets the insured value back which may be highly required at that age. :)

Actually parents are to be insured for benefit of child. Unfortunately, insurance is considered more an investment than risk cover. A child need not be insured. Only earning member should ensure himself as a protection for dependents- children and spouse.

Every one requires life insurance kid or an adult. :)

Its better to take life insurances at small age as premium at small age is less and returns are high. Moreover when the kid comes to an age of 18~20 he/she gets the insured value back which may be highly required at that age. :)

Actually parents are to be insured for benefit of child. Unfortunately, insurance is considered more an investment than risk cover. A child need not be insured. Only earning member should ensure himself as a protection for dependents- children and spouse.

Actually it should not be called insurance but 'assurance' or kind of safety measure for future of a child. This way parents deposit money for their children for their college education/marriage etc. There are certain policies which give good return on maturity after 20 years or so while most needed by parents for the future of their wards.

Every one requires life insurance kid or an adult. :)

Its better to take life insurances at small age as premium at small age is less and returns are high. Moreover when the kid comes to an age of 18~20 he/she gets the insured value back which may be highly required at that age. :)

Actually parents are to be insured for benefit of child. Unfortunately, insurance is considered more an investment than risk cover. A child need not be insured. Only earning member should ensure himself as a protection for dependents- children and spouse.

I agree with it earning member needs to be insured first so that his/her dependants may get the benefits if any things wrong happens to the earning member in future.

But there is no harm in it to get kids also get insured. :)

Every one requires life insurance kid or an adult. :)

Its better to take life insurances at small age as premium at small age is less and returns are high. Moreover when the kid comes to an age of 18~20 he/she gets the insured value back which may be highly required at that age. :)

Actually parents are to be insured for benefit of child. Unfortunately, insurance is considered more an investment than risk cover. A child need not be insured. Only earning member should ensure himself as a protection for dependents- children and spouse.

I agree with it earning member needs to be insured first so that his/her dependants may get the benefits if any things wrong happens to the earning member in future.

But there is no harm in it to get kids also get insured. :)

Most corporate employees have their families including parents, covered in their official policies at a very minimum rate. Therefore most people take separate insurance for investment purpose only.

A new member will be in our house soon! Everyone is excited but also debating on life Insurance for kids. Really it is confusing whether a kid needs a life insurance or not?

Life insurance is not only insurance it is also means of saving. LIC policy is best one gift for child. It is also good for parents. Premium payable on kids policy is lowest one. Parents will enjoy tax rebates on Premium amount. Kind will get funds for higher education. in future.

Every one requires life insurance kid or an adult. :)

Its better to take life insurances at small age as premium at small age is less and returns are high. Moreover when the kid comes to an age of 18~20 he/she gets the insured value back which may be highly required at that age. :)

Actually parents are to be insured for benefit of child. Unfortunately, insurance is considered more an investment than risk cover. A child need not be insured. Only earning member should ensure himself as a protection for dependents- children and spouse.

Actually it should not be called insurance but 'assurance' or kind of safety measure for future of a child. This way parents deposit money for their children for their college education/marriage etc. There are certain policies which give good return on maturity after 20 years or so while most needed by parents for the future of their wards.

That is why I say that 'insurance' is mixed with 'investment'. Most insurance companies or their agents persuade people to over-insure by highlighting the 'investment angle' . They also inflate the insurance needs by portraying future needs with inflation index even though the premium is to be paid out of current income earned at today's prices.

If the insurance is an investment, why not FD (fixed deposit) instead of life insurance.

If the insurance is an investment, why not FD (fixed deposit) instead of life insurance.

Because you don't get tax rebate on FDs like you get on LICs I think so. :blink:

If the insurance is an investment, why not FD (fixed deposit) instead of life insurance.

Because FD does not cover your risks as Insurance plans do although returns are lesser than FD.

If the insurance is an investment, why not FD (fixed deposit) instead of life insurance.

Because FD does not cover your risks as Insurance plans do although returns are lesser than FD.

Exactly one don't get risk cover in FDs.
:)

If the insurance is an investment, why not FD (fixed deposit) instead of life insurance.

Because FD does not cover your risks as Insurance plans do although returns are lesser than FD.

It is right that return on insurance are lesser than FD, but we will not get rebate in Income tax on FD. Second thing it is easy to cash FD that insurance policy

If the insurance is an investment, why not FD (fixed deposit) instead of life insurance.

I agree. Itis not wise to over-insure. Take only low cost insurance policy. There is one- term insurance- that covers risk and the policy amount is payable oly on death and not otherwise. The low premium will enable you to invest the remaining available funds in better investment schemes- in terms of liquidity and return.

If the insurance is an investment, why not FD (fixed deposit) instead of life insurance.

I agree. Itis not wise to over-insure. Take only low cost insurance policy. There is one- term insurance- that covers risk and the policy amount is payable oly on death and not otherwise. The low premium will enable you to invest the remaining available funds in better investment schemes- in terms of liquidity and return.

Tax saving is main reason for buying insurance policy.

Most of the life insurance agents say that insurance and FD is totally different things. Insurance for kids are generally for twenty years and until kids get in college their insurance get matured and assist them with a good amount. Beside kids also get life coverage. This is really confusing, whether to go for an insurance or not?

Most of the life insurance agents say that insurance and FD is totally different things. Insurance for kids are generally for twenty years and until kids get in college their insurance get matured and assist them with a good amount. Beside kids also get life coverage. This is really confusing, whether to go for an insurance or not?

Insurance companies and their agents will say anything to increase their business. But as a customer, you should not over insure. A child needs protection in the event of death of parents and so parents are to be insured and not the child. Then also, insurance covcer should not be excessive. Best cover is term insurance that means that the beneficiary will get the insured amount only on death of the insured person and not otherwise. In such policy, premium is lowest and cover highest. So it is possible to invest more in equity shares, company and bank FD. for short terms.

Most of the life insurance agents say that insurance and FD is totally different things. Insurance for kids are generally for twenty years and until kids get in college their insurance get matured and assist them with a good amount. Beside kids also get life coverage. This is really confusing, whether to go for an insurance or not?

Insurance companies and their agents will say anything to increase their business. But as a customer, you should not over insure. A child needs protection in the event of death of parents and so parents are to be insured and not the child. Then also, insurance covcer should not be excessive. Best cover is term insurance that means that the beneficiary will get the insured amount only on death of the insured person and not otherwise. In such policy, premium is lowest and cover highest. So it is possible to invest more in equity shares, company and bank FD. for short terms.

Maybe you could write an article on this topic in easy language, the truth is there are so many confusing claims by different insurance companies that it is very tough to decide on what option to go for!

Most of the life insurance agents say that insurance and FD is totally different things. Insurance for kids are generally for twenty years and until kids get in college their insurance get matured and assist them with a good amount. Beside kids also get life coverage. This is really confusing, whether to go for an insurance or not?

Insurance companies and their agents will say anything to increase their business. But as a customer, you should not over insure. A child needs protection in the event of death of parents and so parents are to be insured and not the child. Then also, insurance covcer should not be excessive. Best cover is term insurance that means that the beneficiary will get the insured amount only on death of the insured person and not otherwise. In such policy, premium is lowest and cover highest. So it is possible to invest more in equity shares, company and bank FD. for short terms.

Maybe you could write an article on this topic in easy language, the truth is there are so many confusing claims by different insurance companies that it is very tough to decide on what option to go for!

I welcome your suggestion. However, I have written some articles on theme of investment. Here I may add that our income is limited. so investment/ expenses also should be priority based. Current expenses on food, shelter, education and medicine are obviously of highest priority. Savings if any should be in order of (1) Health insurance policy- medi claim in view of high medical expenses (2) Accident insurance with a non life insurance company (3) provident fund, bank deposit, equity shares. Life insurance requirement should be assessed on basis of family needs in event of death. If wife is also employed or will get compassionate employment in case of her husband's death or vice versa, there is group insurance scheme for employees, gratuity, family pension etc; the need for life insurance will decrease to that extent. In fact, there may be no need for life insurance. Even if necessary, over insurance should be avoided and only term insurance (pure insurance) should be chosen. It is worth mention that no agent or company ever canvas term insurance scheme.

Child insurance is good saving for child's future.