If you follow this blog, you will know that I’ve become a father last month. It means that my life will change especially in money management.
I need properly spending my income especially for my beloved son. Other than buy his clothes, napkin, diapers ,etc I need to ensure that his life in the future is good. Nowaday, kids expenses is high. Money for education is really expensive and starting now I need to save.
Not only education, healthcare also expensive and I need to be ready. One thing I need to have for my children is baby life insurance.
Why Need Baby Life Insurance
Like my personal life insurance, baby also need it. It is purchased for a number of reason. First and foremost is guaranteeing the child that they will have life insurance coverage for their entire life, no matter what their health condition becomes. Even though baby life insurance policies are usually smaller than policies for adults, there are often rides attached to the policy which allows for additional insurance coverage to be purchased at various points throughout the life of the baby.
The concept is known as providing a guaranty of insurability.
Not on his life, it also protects the parents. If something happens to our child, a significant financial investment has typically already been made by parents. If a child dies, it can provide the parents the financial stability to raise other children.
Another benefit is the cash savings value of the policy. The policy will have a growing surrender value and loans may be taken against this value during a child’s lifetime. Sometimes this value will be used to fund an education, or it may be used to put a down payment on a house. It can also pay for a wedding or provide an emergency source of funds to smooth out rocky financial times during the child’s life.
Source :- LifeAnt
I’m still thinking about it. There’s another option such as SSPN, Takaful for me. I need to choose the best option for my child.