As you already know, the primary purpose of buying life insurance plans is to make things easier for your beneficiaries when you’re no longer able to work and earn some income. The companies that provide such services, such as Takaful Malaysia, first evaluate your life to try and predict the problems you’re likely to encounter before recommending any solution. Life insurance is all about fending for your children when you’re no longer able to work. Some insurance companies have developed a new product known as child insurance, which is different from life insurance.
One of the biggest attractions of child insurance is the dual benefit they carry for the child. The first benefit they present is to generate a good corpus from investing the premiums in funds. The funds in question here could be either ULIP-based or endowment-based. The second of the dual benefits is that the insurance provides a cover to the parent who invests in it on behalf of the child. The beauty of the second benefit is that the cover is for life. This has the following impact on the policyholder in case he dies:
Child insurance protects the child’s interest even when the father or mother is no longer around. It guarantees the child a lump sum payment or period amount. The period amount helps in the child’s maintenance. The child insurance is a great product for parents who struggle to save money on their own without any form of compulsion. The insurance compels the parents to set some money aside to cater for the needs of their children. It trains parents to be responsible and dedicated to saving money for their kids until the little ones can make their own decisions.
Parents must buy child insurance as early as possible. This is because the money set aside for this type of insurance needs plenty of time to grow. In fact, the best scenario is one where you begin comparing different child insurance plans immediately you learn that you’re expecting a child. The child should enter the world with an insurance product or plan that you have already purchased under his/her name. By starting early, you get the chance to worry less about your child’s future in case something happens to you thus making it impossible to be with him/her.
As a parent, you owe it to your kids to give them the best footing or start in life. A child insurance plan offers you the chance of doing just that. The smart actions you take today will attract the child’s admiration later when he or she is fully grown and able to comprehend the importance of having insurance. The child needs a proper footing to give him the best chance of enjoying a successful career. He needs his finances to be in order. Make this decision on behalf of your child by speaking with Takaful Malaysia about child insurance.