Importance of Insurance For Your Kids

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You want to be able to provide for your children as a parent. You’ve probably planned out how you’ll pay for their clothes, food, school, and other necessities. Furthermore, it is critical to have a plan in place should something unexpectedly happen to you, causing your family to lose your income.

According to a recent survey, 42% of households would struggle to pay their living expenses (such as rent/mortgage, utilities, groceries, and education) within six months of the death of their family’s primary earner. This is due, at least in part, to the fact that many families do not have life insurance. According to the survey, only 52% of people in the United States have life insurance. 

If you’re a parent, you should consider purchasing life insurance to protect and care for your family in the event of your untimely death. This guide will teach you everything you need to know about life insurance, how it works, and how it can protect your family. Click here if you are interested to buy insurance policy for kids malaysia.

Parents purchase life insurance to provide money to a beneficiary in the event that they die. This money can help your family pay the mortgage, fund their education, or cover other day-to-day expenses that you used to cover with your salary while you are away. The beneficiary is usually your surviving spouse or one or more of your children.

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You can obtain life insurance from either an independent carrier or your employer. Depending on the insurer, your health, and your financial situation, coverage amounts can range from $10,000 to $10 million. You pay a monthly premium to keep your life insurance policy active.

Life insurance is classified into two types: term life insurance and permanent life insurance. Term life insurance is only valid for a set number of years. You can select a 10-, 20-, or 30-year term. If you die before the end of your term, your beneficiary receives your entire death benefit.

Permanent life insurance covers you for the rest of your life, but it is generally more expensive. When you die, your beneficiaries receive your death benefit, but there is usually also a cash value. The cash value is a separate saving component of your plan that you can borrow against while you are still alive if necessary.

It’s no secret that raising a child is expensive. According to recent estimates, raising a child to the age of 18 costs approximately $233,610, though this amount varies depending on where you live and your lifestyle. 2 Your family would lose your income if you died, affecting their ability to pay the rent or mortgage, buy groceries, pay for daycare, and handle other day-to-day expenses.

buy insurance policy for kids malaysia

This is why family life insurance is important: it helps cover these financial costs during your children’s formative childhood years in the event of your untimely death. Your life insurance death benefit may also cover some or all of the costs of your children’s education, including college, depending on your plan.