Can I buy an insurance policy for my child?

Key objective of insurance is to protect income of the bread winner. In family suppose husband is working, wife and children are dependent. So, why should wife and children buy insurance or why that individual should buy insurance on the life of wife and children? Ultimately, children are dependent on parents; parents are not dependent on children. So, in such case there is no point in buying insurance on the name of child.

There are many plans available in the market, which are branded like so and so child plan. So, people feel that these plans will be able to achieve objective. Now, these maybe educational plans or marriage plans or whatever these are branded. First and foremost thing, that children should not be insured in such policies. There are some policies where children are insured but according to me or as a matter of fact there is no point insuring children. Ultimately if the parents whom the children are dependent, they die children will have problem. However, nobody wants to insure children so such policy where children is insured or somebody is buying a policy in the name of child, on the life of child that should be avoided.

The earning person, in case husband and wife both are earning, in such a case also the person who has higher income should have higher insurance cover. So, child insurance should be avoided. Earning member in the family on whom the members of family are dependent he should be insured with adequate amount. That is the key objective of insurance.