Troubleshooting: Should I buy insurance for my child or save money?

Buying insurance for children is one of the investment and risk reduction methods that many parents choose. However, most parents still do not know whether to save money or buy insurance as well as what type of insurance is best for their children.

content

Should I buy insurance for my child or save money?

What kind of insurance is good for buying?

Notes when buying insurance

Benefits of buying insurance

Many families have realized the tremendous benefits of insurance and have thought about buying insurance for their children. However, each family should think carefully about the purpose of this to buy insurance packages suitable for children as well as the family's financial condition.

Should I buy insurance for my child or save money?

This is a question that is always a headache for parents. In fact, every form of financial investment has its advantages and caveats.

Currently, many banks have developed types of savings specifically for children. With these products, mothers can flexibly choose the amount of money to deposit into their savings account. Later, they will enjoy term interest rates according to the tiered bracket and the actual amount deposited.

Buying insurance for your child and saving are both financial investments

In addition, many families now tend to buy different types of insurance for their baby. This form has many types such as life insurance, health insurance, security insurance, education insurance, education accumulation ... providing many options for parents.

Its uses are also varied, from protecting children from accidents and diseases to saving money for college.

Compared to bank savings, insurance has a lower interest rate (depending on the type of insurance), but it protects children from higher risks. Therefore, parents should buy insurance for their children if they want to invest in a long term.

What kind of insurance is good for buying?

Baby insurance products are oriented towards long-term savings accumulation so that their children can have a stable financial system in the future. However, each type of insurance has different protective characteristics, so parents need to find out before making a decision.

With proper understanding of the maternity insurance, the cesarean section or the natural agreement is 0 VND. Maternity insurance, every woman preparing to become pregnant must have heard, even specific advice. But there are many sisters' specialized concepts that are still very vague. So what are the factors you need to know before choosing to buy insurance for a birth, what type is 0 VND?

The most popular types of insurance for infants and children today include:

Life insurance

This is the best known type of insurance. Children can receive cumulative value after the policy expires. In particular, after paying the insurance for the specified time, if there is an unfortunate problem with the buyer or the beneficiary, the insurance company will pay the corresponding compensation fee.

Health Insurance

This is a non-life insurance that helps with the costs of having problems affecting the health and life of the child. Insurance is valid from purchase to expiration of the policy.

Education insurance

Is a form of accumulation to pay the tuition fees for your children in the future. The contract term can last 8-22 years or 12-22 years depending on the form of receiving money due once or periodically.

Buy education insurance to prepare your children for college

Industrial security insurance

Unlike life or health insurance, this form of insurance aims to invest in a career for children with a term of 8-22 years and a minimum cost of 4 million dong.

Notes when buying insurance

Before deciding to invest in any form of child insurance, parents should note the following:

Decide on the right insurance package for your child based on your need for protection or financial investment

Choose to add the form in which the policyholder is allowed to participate in insurance. If there is a problem with the payer, the beneficiary is still guaranteed benefits.

Because insurance is both a financial investment and a protective effect, there is no need to put too much emphasis on the issue of profit and loss but to ensure future plans.

Ensure yourself and your family have stable and long-term financial capacity to avoid losing your paid expenses completely or get back in too little money

Choose a reputable company with the right insurance plan

Only pay fees to signed insurance companies

Parents should choose reputable insurance companies to sign contracts

Benefits of buying insurance

The benefits that insurance brings to children:

Ensure children are protected, taken care of until adulthood and enjoy insurance if an unfortunate happens to their parents

Ensuring a stable and long-term financial source for children and their families

It is a smart and profitable long term investment and savings channel

It can be seen that buying insurance for children is a form of long-term financial investment for the future as well as protecting the baby from the risks in life. If you know the purpose of the insurance, parents can buy products that are suitable for their children.