By Mian Azhar / 12.14.2018
Asa parent, the goal of your purchasing life insurance should be to cater to the needs of your children and your family, in case you are no longer around. A good life insurance policy is one that can payoff any loans, debts, mortgages, etc. and secure your family’s financial future. However, when it comes to teenagers, the situation is a whole lot different.
Should you buy life insurance for your teenage son?
Teenagers don’t always necessarily carry the kind of responsibilities on their shoulders as their adult parents do. However, as a parent, you cannot ignore the fact that your teenage son or daughter still needs his or her life insured. So, here are a few reasons why you should get life insurance for your teenager.
- Life insurance comes along with guaranteed insurability
Guaranteed insurability is one of those many important reasons why you should buy life insurance for your teenage son. This is one of those add-ons to your regular life insurance policies which allows one to add extra coverage, without having to prove his or her health status.
What this means is that the premium will start low, now that they’re still young and healthy and will be low throughout the coverage. So,basically, they will be able to add more coverage to their existing policy, as they get older, without having to notify on their health status.
And even if they tend to develop a certain health condition later in life, they won’t have to worry about the costs, as the insurance policy they would have made has it covered. So, they will have the option to carry on with their existing policy, as well as make additions to it, as and when required.
- Life insurance also covers medical and funeral expenses
One of the most important reasons you should buy life insurance for your children at such an early age is because the medical and funeral expenses are covered. Medical expenses can be a burden. But with life insurance, these expenses are covered, and your children don’t have to bother about a critical illness they or their surrounding ones tend to get.
Also,funeral expenses can cost a fortune. However, having life insurance in place can prove to be helpful in these circumstances.
- Life insurance lends student loans
Everyone has that time when they must go off to college. And when that time comes, there is nothing better than a student loan to teach your children the ways of financial management. However, it is important to note that not all student loans are the same, and some of them must be paid back before your child passes away.
- Life insurance also provides counseling for grief and gives enough time to recover
A young family member dying can be devastating. Especially for parents,in case their children pass away at an early age due to some mishap.So, they might want to take some time off work, so that they can get over it. However, in case they don’t get a paid leave during that time, it can prove to be difficult to stay afloat financially during that time.
Also,some amount of grief counseling can prove to be very beneficial, not only for the parents but for the family as well. So, a well-planned and thought of life insurance plan for your teenager can act as a tool to recover from that grief as well as get paid during your time off work.
How much life insurance cover should your teenage son get?
The answer to this question depends on how much you’re willing to spend, and what benefits you will be getting out of the insurance policy. Most extra benefits such as those higher death benefits cost a fortune. If you do a search online, then most experts will tell you that it is rather a waste of money and efforts to buy life insurance for children. And you must agree with some of the reasons they give.
In fact, life insurance for kids is always marketed to parents as one of the most important things in their lives. They often say that it is away to secure your child’s financial future. This way, they will have to buy more life insurance later, no matter what their health status is. So, for these reasons alone, buying life insurance for your teenage son is a smart move.
However,the question is, just how much does your child need? For this, you will need to explore some factors that govern the purchase of life insurance for children.
- A stand-alone policy makes sense
When it comes to life insurance, there are two main policies you can choose from. The first is called ‘whole life insurance.’Basically, it is a permanent policy wherein there are fixed premiums and guaranteed payouts. In this kind of policy, the premiums do not change over the policy’s term. Also, these policies come with additional financial components that can help increase the value of the policy. These are called ‘dividends.’
These are paid out to the policyholder as part of the profits the insurance company gains. These can be used in many ways. First off, they can be used as a discount on the premium. Second, they can be cashed out.And finally, they can be left as they are so that they increase the cash value of the policy.
And then there is the other policy called the ‘universal life insurance policy.’ This type of policy helps you customize things such as the coverage the policy provides and the amount of premium you pay. You can select the benefits as per your current requirements and make changes along the way, in case those requirements change. The cash value is then depleted depending on the kind of adjustments you make.
- Child Rider benefits
Child Riders are extra benefits that you can add to your existing policy,and has various other benefits that come along with it, such as death benefits in case one of the children dies. Although child riders are useful tools for insurance policies, the benefits of the child riders stop after a certain, specified period. In this case, when your teenage son attains a specific age. However, a child rider is one of the best things to go for, in case you are not certain whether you should buy life insurance for your teenager or not.
What ICICI Prudential life insurance term plans get your teenage son the best?
One cannot simply ignore the fact that life insurance for children and teenagers have gained utmost importance in today’s world. This popularity of this child life insurance plan goes with the view parents have; that they must provide a better future for their children.
So,it’s vital that parents ensure they purchase such a child plan wherein the said child life insurance plan will continue to provide for their children’s needs even in case of their demise.
The ICICI Prudential life insurance, an undertaking by ICICI bank, a trusted and very well-known name in the banking sector and Prudential PLC, which is one of UK’s biggest as far as the financial sector is concerned is one of India’s leading-most company in asset and financial management, focusing on filling the huge gap in investments and savings with a long-term vision of creating more wealth for their investors by providing simple yet relevant solutions for all their investment worries.
- ICICI Prudential Smart Kid Savings plan
One of the best child plans offered by ICICI Prudential is their Smart Kid savings plan. The Smart Kid savings plan works like a charm,providing you with the benefits of a good investment, not to mention,the fund value upon maturity. It also provides your family and especially your children with a lump sum benefit in case of your demise. Even with that, the policy continues to provide all the investment benefits.
- ICICI Smart Life Unit Linked Insurance Plan
This is a plan that can secure your child’s future education. And this,even when you’re no longer around. As far as the benefits are concerned, units are allocated by the insurance company, that are equivalent to the installment amounts of premium paid on the due dates, just if all premiums have been paid. However, the One Pay benefit is not available.
As the saying goes, children are God’s gift to their parents. So,securing their future should come foremost for any parent. But what most parents worry about is how exactly they can do that? For this,the many plans described above are provided. ICICI Prudential life insurance plans are regarded as one of the best insurance plans that are on offer in the country. So, it should come as no surprise that their child plans will be good enough or great rather.
So, with that said, why go for any other insurance plan for your child’s future and education when you have ICICI Prudential Life Insurance, right?