Child life insurance is a hotly debated topic both from the financial point of view as well as from the emotional angle. Children are not normally contributors to the family income (with the exception of child film stars) and the family is not dependent on the child’s earnings.
Many financial experts therefore put forward the view that money spent on life insurance for children or health insurance for children can be better utilized in college funds or other career accounts. But, although on the surface this viewpoint makes good sense, it is actually a rather short-sighted vision of the future and here’s why:
Although no parent would like to admit it or even want to foresee such a catastrophe for their children in the future, the fact remains that death is an eventuality. Under the unforeseen and unfortunate circumstance of a child’s early death, most families would struggle to pay for the funeral and burial expenses.
With a child life insurance with its relatively low costs, parents may find it easier to cover these expenses and in such a time of grief, it helps if mundane financial matters are well taken care of.
Life insurance for children also provides for basic funds to cover any medical debts which may exist following a youngster’s death. The costs of medical care are very high and may usually run higher than what is covered by the child health insurance program in case of a serious illness. The proceeds from the life insurance policy for children will provide financial relief in such a scenario.
If a child is insured while healthy, the costs are relatively inexpensive and in case the healthy insured child develops a medical condition later on, considerable cost-savings can be made. But, if the child develops a medical condition while uninsured, the premium costs may be too much for the parents to bear.
Child medical insurance is also a must in any plans involving children. Much as parents may dislike the thought of their children requiring serious medical attention, the fact remains that children can and do fall sick, sometimes insignificantly and sometimes gravely.
It is easy for parents to deny themselves urgent medical attention due to paucity of funds but when it comes to their children no parent would like to deprive them of proper medical care if necessary. This is where the children medical insurance comes in handy as it takes care of all the nitty-gritty money matters while ensuring the best medical attention for the child.
Child life insurance thus is not to be dismissed off lightly but rather serious thought should be given to formulate a decent life insurance policy for the child.
