Do I Need Life Insurance For My Child

It’s life-changing to have a little one or a young one in your care. Parenthood can stir up a lot of emotions and questions including whether life insurance is necessary for your child. It may seem complex so let’s break it down to what factors to consider and the types of life insurance plans available in Malaysia.   

What should I consider to answer the big question?

Here are a few things to keep in mind:

1. Financial security

As parents, our top priority is to ensure our children are well taken care of. Life insurance provides a safety net, knowing that your child will be financially protected in the event of your untimely passing. For example, by getting a life insurance policy with yourself as the insured and your child as the beneficiary, the payout can provide the financial support for your child to pursue their dreams even in your absence.

2. Coverage for future health concerns

Life insurance plans offer valuable coverage for future health concerns, extending beyond just death benefits. These plans often include Total & Permanent Disability (TPD) Benefit, and optional riders such as premium waivers, medical insurance, and critical illness insurance. They may also provide daily income during hospitalisation.

Given the burden of healthcare expenses, especially during emergencies or ongoing treatment of chronic illness, medical insurance can help ease the strain. For example, parents can be comfortable that their child's medical bills will be taken care of and they have access to the best treatment without having to worry about medical bills.

Moreover, getting life insurance for a child at a young age provides coverage at lower premium rates, offering long-term financial protection that's more affordable.

3. Building cash value

Certain life insurance plans accumulate cash value over time which can be used to fund various financial goals. For example, the funds can be utilized to set up a child's education fund or contribute towards a down payment for a house.

A policy like FWD Max Wealth even provides increasing guaranteed cash payments and bonuses when celebrating a child’s significant life events like their graduation or marriage. The maturity benefit received when the policy reaches its full term can be used for anything really. Whether it’s to fund your child’s business or to pay off the mortgage of the family home or to cover your day-to-day expenses during retirement, this payout provides essential financial flexibility for future endeavours.

So… do you need life insurance for your child?

Ultimately, whether to get life insurance for your child is a choice based on your circumstances and financial objectives. Many parents consider it for the safety net it provides.

With an eligibility age starting from only 14 days, FWD WealthLink can financially protect and help your child’s investment journey. It is an all-in-one protection plan that includes life insurance and investment as well as an optional medical coverage rider. Learn more here.

If you need assistance in making the right decision, our FWD Wealth Advisors can guide you on finding the most suitable policy for you. Reach out to us by dropping your details here and we will be in touch.