What is the best insurance policy for a child age 6.5 year?

Answer 1

Why would a child of 6 1/2 need a life insurance policy?

Answer 2

I would recommend the following. Explanation provided.

1. Critical Illness cover for the child
If a serious illness like cancer strikes, the expenses over a period of 2-5 years could stretch any pocket. It could be 5-15 lakhs depending on how it goes through.

2. Hospitalisation coverage for the child
Medical emergencies cannot be predicted. This is different from critical illness cover explained above.

2. Term insurance policy of term 15-20 years for the earning parent.
Yes, loss of earning parent will deprive the child of education support during college and pre-college periods. Decide on the sum assured based on what the college expenses will be after 15 years by annually inflating the current college expenses by 8-10% (that is how much the education fees are growing now...!!) every year for the 15 years.

3. Term insurance cover for non-earning parent.
Is there a need? Yes. If the non-earning parent is supporting the child, you need to look for a suitable replacement and the expenses will always be an extra hole on your pocket. This insurance amount can be 50% less than earning parent insurance cover explained earlier. The lump sum amount will be of great help if properly utilised.

In addition to the above you should have some long term savings/investments so that you can build a considerable nest egg. This is because if the non earning parent survives there would not be any insurance payments and the education expenses, and it has to be borne from your pocket.

Good luck.

Answer 3

In regards to LIFE insurance on a child, there are no guarantees that a child will live to 100 or 85 or 65 or 18. Funerals are expensive. The family will have to pay out of their own savings to cover funeral expenses plus any uncovered medical bills. This can really severely impact a family's finances for years.

Some companies have insurance policies for children for as little as $24/year and these are whole life policies so they build cash value.

What happens if the child contracts diabetes as a youth? Life insurance becomes expensive for the rest of his/her life.

Go talk to one or more licensed insurance agents in your area.

Addendum
Insurance is always about preparing for the unexpected catastrophes in one's life. A child's death is heartbreaking. Paying for an expensive funeral compounds that grief. That child may develop a lifelong disease can also affect his/her future. I know one company that offers a small insurance policy for any child without underwriting for a one time payment of $250. The likelihood of a child dieing is small - so this insurance premium is also small. It also assures that the child can have insurance when he/she becomes an adult. With the number of new diseases out there, this planning is worth a look.

Answer 4

The ONLY insurance a child of 6.5 needs is a comprehensive medical policy which will pay for routine care and catastrophic illness.

If someone is trying to sell you life insurance, run away, and never trust them again!!

Answer 5

Do you mean company?? I would definately purchase Whole...not term insurance. that way, as your child gets older, the policy really begins to grow and become and investment. With Term Policies, you pay a really low premium, but once the time is up, it's up. At least with a Whole Life policy, the cash value will grow. Talk to whoever has your car insurance...sometimes having multiple policies gives you a discount.

Answer 6

I'm not sure which type of insurance that you are asking about... If it is health... many states (U.S.) offer health plans to every child at reduced or no cost at all.

In Alabama, it is "All Kids" ... You have no premiums and your deductible is $50 to $100 and sometimes a small co-pay. There are several different plans that are offered. These are based on your income, but every child can qualify for these plans and they are much MUCH cheaper than any health insurance company can offer.

Answer 7

If you mean life insurance, you don't need this insurance for a child that age. It's a waste of money. But if you mean health insurance, you can insure your child under your group plan at work. However, if you are uninsured yourself, you can get a child-only health plan through insurers such as Blue Cross.

Answer 8

A small whole life policy for like $10,000 from a good company. This will protect you in the short term and later you could always change the ownership to the child when they become older and have a family of their own.

Answer 9

For this age, I would look at a guaranteed UL or WL policy. The premiums are low and you and the child when he is old enough to be the owner, can put more money into it which will grow the death benefit as his needs change. This is a simple answer. Let me know if you would like more information. [e-mail]

Answer 10

A child does not require insurance policy as his loss of life in not affecting anybody monetarily.What u need is a policy where if anything happens to the parents ,child should be taken care of monetarily.For that I have 2 suggestions-
1.Open a systemic investment plan in a good mutual fund with Rs.1000/- or bigger amt.[you can afford] to collect money for his/her higher studies.
2.Take a pure term insurance plan in your name for max. duration[30 yrs.] and for max. amount you can afford to.A pure term plan is one where for min. amount u can get max. coverage but there is no money back in at the end of term.