Overcoming the guilt of insuring your children’s lives

Lee Bromfield, CEO of FNB Life.

Life or funeral insurance is an important part of financial planning for families but in most cases, parents cannot bring themselves to insure their children’s lives. This is partly due to the perception of ‘bad luck’ when it comes to children and this form of insurance.

CEO of FNB Life, Lee Bromfield says insuring children is one of the toughest decisions for families as parents often find it hard to overcome the guilt associated with such decisions. Every parent has the vision of a long life for every member of their family, especially children, but it’s important to consider all possibilities and to be realistic about life.

Bromfield says the guilt of insuring one’s children could be overcome by taking the right life or funeral insurance policy - one that not only covers the main member but your entire family. He says this type of family cover can provide the necessary security without the associated guilt.

“Nowadays consumers have a number of options when it comes to funeral insurance, including covering up to 21 family members on a single policy. It makes sense to consider such an option because you can cover your immediate family, including your children, and your extended family such as aunts and uncles.

“The good thing about this type of cover is that children are predominantly low risk so you are unlikely to feel major financial impact by insuring them. A family could potentially pay in the region of R6.30 for R10 000 cover per child, a relatively low cost,” he adds.

Bromfield says when looking for cover for your whole family, it’s important to focus on getting value for money. He explains that families should consider some of the following factors:

Take one cover for the entire family

• In some cases, consumers are sold a number of policies which are then lumped into one monthly premium. This tends to be expensive with less value for money.

Understand cover amounts for each family member

• The cover amount for the main member is usually larger than that of other members covered under one policy. Understand each amount to work out whether you need to top up.

Align your policy with your family needs

• Your life or funeral policy should reflect your family needs - tailor it to your liking to avoid any potential financial risk.

“Insuring children should be seen in the context of financial planning among families. Even though children do not generate any income, the truth is that they are still exposed to all forms of risks such as illness, accidents and other factors. It’s important to plan for every eventuality,” says Bromfield.