While taking a Life Insurance still remains one of the most crucial and sensitive decisions to take for in one’s life, going for a Child Life Insurance can turn out to be a more difficult decision too. As Life itself is uncertain and full of risks, there can be no better financial instrument than a Life Insurance that can adequately protect your financial interests in the event of death and other kinds of related risks such as accident or critical illness.
But what about having a Child Life Insurance? Is Taking Child Life Insurance Plan Worthwhile Decision? This is an important question and we should try to get right answers for the same. This matters the most to us as it involves the most important element of our family that is The Child.
If you look around or research a bit, you would notice that the market at present is flooded with Child Life Insurance Plans. Almost every Insurance Company functioning in India has come up with a Child Insurance Plan. Each of the Child Insurance Plan offers its unique set of benefits to the insured. But what about the obvious question – Is Taking Child Life Insurance Plan Worthwhile Decision?
Should you go forward and take a Child Life Insurance Plan?
We have done our research and analysis on this important issue and will put forward before you our point of view.
First of all, it is almost impossible to contemplate and imagine any type of risk or eventuality on our child. And contemplating death of a child is even a far off scenario. Secondly, taking a Death Benefit arising out of death of a child from a Child Life Insurance Plan is unimaginable and makes no sense whatsoever. Thirdly, if you are considering of planning for your child’s future, for example, higher education, foreign travel, marriage and for other requirements, then too taking Child Life Insurance is not a profitable option as the returns arising from investment in Child Life Insurance are only marginal.
With all the above logical reasons in one place, it would seem obvious not to go for a Child Life Insurance Plan. Yes, Child Life Insurance is not a worthwhile decision to make for the benefit of your child or for your family on the whole. We would discuss it further as to clarify our point of view.
As a parent, your prime concern is to secure the future of your child so that your child can achieve whatsoever he or she wishes to achieve in life. For that you need a healthy financial portfolio for your child. And that would require you to build up a proper investment portfolio other than taking a Child Life Insurance.
So you can obviously go for taking long term investment options such as Mutual Funds, Investment in Gold, Investment in Stocks, etc. These instruments offer higher rate of return on your invested sum and prove to be profitable too in a long run and come with easy liquidity so that you can use the money when you require it without any hassles.
As far as uncertainties and risks in life are concerned, you can definitely go for having a healthy Term Insurance cover on your name so as to safeguard the financial interests of your family in the event of your death or critical illness. As your family is dependent on you, it makes sense to insure yourself rather than insuring your child. Financial risks can be covered by having a Term Insurance in your name. You can very well decide the amount of such insurance cover which depends upon your earning capacity, present liabilities and future goals and aspirations. If you have an adequate Term Insurance Cover then there is no need to take an extra insurance cover in the form of Child Life Insurance.
So on one hand you cover up the risks and uncertainties of life by taking Term Insurance and on the other you start investing for your child’s better future. In case if one dies, the amount of Term Insurance and Invested Sum would be sufficient to maintain the standard of living of his family and even help the child to take up higher education. So taking up a Child Life Insurance as such makes no sense. Rather it develops as an financial obligation and liability, as you need to pay regular premiums to avoid it getting lapsed.
Thus from our point of view and research, taking a Child Life Insurance is not a worthwhile decision to go for. But ultimately it is your choice as you are free to take the decisions and know exactly what is good for yourself and family.