You must have come across many ads stating that the best gift to give your child is financial security. The protection and promise for a secured future in presence as well as your absence through a life insurance (child insurance). They even have assurance of lower rates and growth of policy coverage.
They even lure you with the fact that since the child is young, there is an increased chance for good rates. But remember that a 30-year old who is in good health is still going to qualify for a good rate, so there's no need to rush out and buy a life insurance policy for a 5-year-old.
This does not mean that you should not invest in child insurance. Child’s education has become very costly now-a-days and is going to increase even further, an insurance can help you provide for it. But life insurance is meant to pay the bills if something happens to the bread winners in the family. It is a support in case you are no longer around to provide.
So it is for you to decide if as a parent you wish to secure your child’s future. By the way, many children's life insurance policies are whole life, generally, the most expensive way to buy life insurance.
