Should you insure your child?
Buying insurance for yourself is often an obvious decision. But should you do the same with your child? Here are some things that will help you make a decision.
Protection in the event of death
Your child has no income; his death would therefore in no way affect the financial health of the family. On the other hand, the emotional charge created by such an event would undoubtedly have a considerable impact on all members of the family. Even if they could count on the support of relatives and psychological help from specialists, parents would no doubt want to allow themselves a certain amount of time to cope with their bereavement. In addition to the funeral expenses that the family would have to bear (up to $ 10,000), temporary absence from work would inevitably lead to a drop in income. This is why protection in the event of the death of a child can be a wise investment in order to ensure your financial security.
Tax-free amount in the event of serious illness
The family of a child with a serious illness such as cancer or multiple sclerosis, for example, bears costs that can increase rapidly. All the more so when one of the parents has to take time off from work or if an outside help has to stay at home with a convalescent child. Not to mention that other costs may be added, such as transport, stays outside and the purchase of specialized equipment.
With critical illness insurance, the insurer agrees to pay an insured a single non-taxable lump sum if the latter is diagnosed with a serious illness provided for in the contract. Among other uses, this amount can be used to cover the costs of home care and services, travel and accommodation costs for treatments outside the place of residence, etc.
Protect the insurability of a child
Disability, serious illness and poor health can have serious repercussions on a child's financial future. Indeed, a child who has been seriously ill may no longer be insurable once he reaches adulthood. This will affect his ability to borrow, as when he wants to buy a house.
The best time to get insurance is therefore when you are young and in good health. In fact, since insurance premiums increase with age, the longer we wait, the higher they will be.
By taking out life and health insurance coverage for your child now, you will protect their financial future (or even their “insurability”), in addition to benefiting from very affordable rates. When he reaches the age of majority, you can assign the insurance contract to him so that he can keep his coverage at an ever more advantageous cost.
Make an appointment with a financial security advisor; this person will be able to recommend the best protection in terms of life and health insurance.
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