looking for insurance plan for babies Malaysia

Insurance Talk: Providing Safety For Your Babies 

Insurance has been around for while now, and it became more important ever since the start of the pandemic. Insurance is meant to protect one’s life in general, in a way that if anything happens to us, we have a backup plan in order for us to not burn a hole in our pocket. Like adults, children too, have their own insurance to protect them from unpredicted accidents or tragedy. If you’re looking for insurance plan for babies Malaysia, here are some things you need to know about insurance plans for children.

looking for insurance plan for babies Malaysia

What is life insurance for children?

Similar to life insurance for adults, except this life insurance is for your children. The death rate among children is relatively low, but if the unexpected happens, then the insurance company will pay a death benefit if the child dies. 

Normally, the policyholder is the insured person, meaning the one that is being covered by the insurance. However, for children, the child is insured, but the policyholder goes to the child’s legal guardian. In a way, the policyholder also can be a beneficiary, who will receive the payout if the insured child dies. 

Benefits of getting life insurance for your child.

Like how there are benefits to adults who opt to get life insurance for themselves, there are also benefits for the children when you purchase life insurance for them. Here are some of the benefits of getting life insurance for your child.

Life insurance guarantees insurability for your child.

It’s in the name itself, life insurance for children provides guaranteed coverage for your child, whether or not they’ll develop health complications in the future. Also, insurers often offer riders (at an additional cost), which allows you to purchase more coverage for your child in the future to avoid going through a medical exam or proving insurability. 

Life insurance does not only insures your child even if they develop health complications in the future. It also insures your child if they decide to pursue a dangerous hobby in the future like racing. Hence, if the unforeseen happens, then you can rely on the insurance purchased. 

looking for insurance plan for babies Malaysia
Life insurance allows you to pay premiums at a low rate. 

There isn’t a lower rate on life insurance than when your child is born. It is observed that insurance rates will increase with each year of our lives, therefore you save so much when paying life insurance premiums for children. Despite still paying premiums, the amount of premiums paid is way lower when compared to paying premiums over 35 years for an adult. 

Life insurance has a cash value.

When paying for the life insurance premiums, part of the premiums will go toward building cash value. Therefore, when you buy life insurance for your child, a bigger portion of the premium will toward the cash value because of the low insurance cost. There will be more than enough time for the cash value to build since you purchase the life insurance at a low cost. 

So that are some benefits of getting life insurance for your child. It is still required to make your own research and consideration before actually purchasing insurance, that way your children are insured and are able to enjoy the benefits in the future.