5 Types of Insurance Policies You Should Consider For Your Children
Parenting comes with many roles, responsibilities, juggling feats and challenges. As such it’s advisable for every parent to prepare for every milestone and challenge and create a bridge before the child needs to cross.
If you know your child might fall sick, will attend university or participate in a student exchange program, why not prepare before? Some of these situations, such as education and medical insurance are inevitable.
Paying small premiums is better than paying a huge lump sum of KES 200,000 for a medical bill as most parents don’t have that kind of money lying around.
Maternity Insurance
Most parents in Kenya have taken this policy. It protects you against paying huge medical bills in fees and consultations and provides a cushion in case there’s a pregnancy complication. Pregnancy complications more often lead to higher bills way beyond what most parents can afford.
To learn more about maternity insurance and what it entails, read this article on understanding maternity insurance.
Medical Policies
Now that your baby is home and even before your baby gets home, he/she needs a medical cover. From now onwards, there will be a lot of hospital visits including postnatal visits. Postnatal visits are free in government hospitals but if you want to take your child to a private hospital it’s best to have an insurance plan.
Most insurance plans allow you to add your child as a dependant so talk with your insurance provider to see the allowances they have on adding dependants.
In addition to this, it’s important to have a NHIF and to add dependants to your NHIF cover.
Here’s how you can apply for NHIF if you have dependents.
Education Policies
Investing in your child’s education is a great way to secure their future. Whether you want them to study in a top-notch school in Kenya, an Ivy League school in a specific country in the world or a particular craft, insurance is the way.
Education is expensive and quality education is even more expensive. With insurance, you are able to afford quality education at the comfort of your salary by paying minimal premiums.
Endowment Policies
With endowment policies, you can save money towards a particular cause by paying minimal amounts. Endowment policies use the compounding effect to make your small monthly contributions give you higher returns than bank rates.
The sum assured is low but it encourages savings and protects your children and family against unforeseen circumstances.
Whole Life Insurance
If you can afford this, this is one of the best gifts you can give to your child. Life insurance is mainly for protection. In case your child gets terminally ill, permanently disabled or critically ill, the insurance providers pay you the sum assured.
Whole life insurance also accrues cash value and can be a form of savings for you. In addition, you can also make an agreement with your insurance provider for your child to pay the premiums when they start working.
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