Life Cover for Infants: A Good Idea or a Paranoid Luxury?
For Babies?
Welcoming a new member of the family is definitely one of highest points in any person’s life. Babies are so cute and adorable; almost everyone in the world wishes they could have one. However, the unfortunate truth is that not everyone can. And those that are fortunate enough to be granted with the gift of a new child are also given a lot of responsibility. Raising a child is no joke and it requires a lot of work.
Above all things, parents should put the safety and wellbeing of their babies first. Although it may be morbid and in truth highly unlikely, the fact is that death is still a common occurrence even for newborns. Their immune systems are not yet fully developed and they are more prone to sickness. Because of this, some parents have considered and taken out the option of life cover for their newborn child. Some people think it is a necessity while others see it as a sign of paranoia. What is newborn Life Insurance really all about anyway?
Why Do People Take Out Life Insurance?
The primary reason why folks take out life insurance policies is for the security of their loved ones. The policy will never benefit the insured; in fact, it is only a burden as he will need to pay for the premium knowing that he won’t be able to benefit from the payout. However, this is where commitment and responsibility come in. People who are considerate enough of their loved ones take out insurance policies to ensure the financial security of their family once they (the policy holder) pass away. So the question now becomes – is this really applicable for newborns?
When one considers the above argument together with the ease at which a minor can take out a life insurance policy then the short answer is – probably not. Compared to adults, it is much easier for kids to get approved for comprehensive life cover. Based on this argument, it may be a good decision to put off taking out a policy for the baby. After all, a few years of waiting shouldn’t hurt and it would be just as easy to take one out once the child is 7 or 8 years old.
Insufficient Cover?
Another case against Life Insurance for newborns is that they may not be able to provide a large enough payout for the benefactors. Most insurance companies in the UK will offer around £5,000 worth of life cover which may not even be enough for most folks. Moreover, the inflation rate will also need to be taken into consideration as this £5,000 surely wouldn’t go very far in 10 or 20 years.
The verdict, it seems, has to be that life insurance for babies may not be too wise an investment. One can definitely use the money for other things such as the child’s education. But then again, one can never put a price on a child’s life so in terms of the sentimental value, then perhaps life insurance for babies is truly a viable option for some people. GP
for newborns is that they may not be able to provide a large enough payout for the benefactors. Most insurance companies in the UK will offer around £5,000 worth of life cover which may not even be enough for most folks. Moreover, the inflation rate will also need to be taken into consideration as this £5,000 surely wouldn’t go very far in 10 or 20 years.
The verdict, it seems, has to be that life insurance for babies may not be too wise an investment. One can definitely use the money for other things such as the child’s education. But then again, one can never put a price on a child’s life so in terms of the sentimental value, then perhaps life insurance for babies is truly a viable option for some people. GP
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