Insurance is becoming more and more popular in our country. But is it enough to financially secure only yourself or the breadwinner of the family? Children are the most precious thing we have, and their safety always comes first. And with their incessant activity for a minute, there is always a risk of injury or accident. But usually the question is “why insure children?” arises when traveling abroad when insurance is a prerequisite.
At the same time, insurance is not only a way to protect a child from an accident, it is a way to ensure a stable future for him, to accumulate initial capital for study, housing, travel. Take care of his independent life in advance.
Child life insurance is divided into:
- risky (from an accident);
- voluntary medical insurance (VHI).
In this article, we will consider why to insure a child and which type of insurance is more priority.
Are you worried about your child, do you travel often, or do you have an athlete growing up? This makes sense because children are often injured, especially when we are not expecting it. And you don’t have to travel, just turn your back on the playground.
Insurance, of course, will not solve the problem of your fears, but it will give you financial stability and confidence that at the right time there will be money for treatment and rehabilitation.
What are the benefits of insurance?
Depending on the situation, you can take out insurance both for a long period and for 1 day.
For example, you have planned a trip for a couple of days and you want to be sure that in an unforeseen event the child will receive the best assistance and do not have to spend a lot of money on this.
You can insure a child from 0 to 18 years old, but remember that the amount of contributions depends on the age – the older the child, the cheaper the insurance.
If your child is into traumatic sports, then it makes sense to consider sports life insurance. What is special?
- the cost of insurance depends on the type of sport;
- you can insure yourself both at the time of the competition or sports camps, and for training;
- the insurance period does not exceed 1 year.
The insurance program can cover risks such as fractures, poisoning, injuries, bites of dangerous insects, illness, death.
If your goal is not just to protect your family from unforeseen expenses, but also to ensure a stable financial future, then you should pay attention to the following type of insurance.
Endowment life insurance
This type of insurance is popular because, in addition to protecting against expenses, it allows you to save money for a stable future. Education, wedding, own accommodation, travel will become available to your adult child upon reaching a certain age.
In other words, these are funds that are accumulated on the account of the insurance company and transferred to the insured person at the end of the contract. In this case, just like in a bank, interest is charged to your account.
The downside is that the interest is small, and the contract is long-term, so the conditions must be chosen as carefully and scrupulously as possible.
And the huge advantages are that only the beneficiary can receive money under the contract, these funds cannot be seized and they are not divided upon divorce. You can also receive an annual tax deduction from the amount of contributions, and if you become incapacitated, the insurance company will continue to pay insurance premiums under the contract.
VHI for children
The confidence that your child will always receive the best care, you can always show him to the doctor and provide the necessary medical assistance. This is no longer compensation for what happened, it is a kind of prevention of the possibility of such situations.
Voluntary health insurance for adults is now an important factor when choosing a job. A good VHI policy is a very tempting bonus. Who will provide the best treatment for your children? Of course, you yourself.
The cost of the policy depends on the medical institutions with which the company cooperates and on the services that are included in it. For example, if you want your policy to include dental treatment, be prepared to pay more. If you want to get medical help at home, the price will also go up, and of course the cost depends on the age (more expensive for babies).
But every parent knows that health is more valuable.
Each parent has in his genes care and concern for the future of his baby. Children are growing, and anxiety is growing.
Therefore, the sooner you provide your child with a stable future, the better. It is simply impossible to constantly be near and protect, but taking care and softening the blow is in your power. Choosing an insurance program, you choose a successful future for yourself and your loved ones.