Insurance can seem like a complicated topic, even for adults. Sadly, many children and teens don’t learn enough about insurance during school, so it falls on the rest of us to try and explain it to them.
Here’s how to explain it in ways that they will understand.
Start With The Basics
The first thing you need to do is to define insurance. Explain that it’s a safety net—that by paying a small amount of money every month (called a premium) to a company, one can then have the benefit of getting help to cover big costs when something unexpected happens.
You could say, for example: “Imagine if your favourite phone got damaged, and fixing it would cost more money than you have. However, if you had insurance, the company would be able to replace or repair the phone for you. It’s like having a backup plan.”
Once the child or the teen understands this concept, you can then relate the same concept to more serious life events.
Explaining Life Insurance With Care
Life insurance is a sensitive topic because it deals with death, so you’re going to have to be gentle and keep it age-appropriate. The child or teen needs to be old enough to understand that at some point they or their parents will die.
You could then go on to say that life insurance is a means of ensuring that surviving loved ones can continue to pay for bills, groceries, and education.
Handling Funeral Insurance Sensitively
Many youngsters will not understand the immense costs of funerals, so using a calm and practical tone is the best approach.
You could try saying something like: “When someone passes away, we have a funeral to say goodbye, but funerals can cost a lot of money. Having funeral insurance can help cover those costs so the family doesn’t have to worry about it when they’re already sad.”
Explaining Legal Insurance
When explaining legal insurance to children or teenagers, it’s best to stick to straightforward, everyday examples. You’re going to want to educate them on the importance of hiring a lawyer to help you get out of trouble, but that it can be costly.
Use an example to illustrate, like this: “Imagine someone tries to take something that doesn’t belong to them and gets caught, or someone at school is being treated unfairly. In the adult world, we might sometimes need a lawyer to help fix things like this. With legal insurance, you can cover the cost of lawyers so that you can stand up for what’s right and get protected.”
Make sure your family is protected in every way. Contact us now to find out more about affordable life, funeral, and legal insurance plans with Workerslife, offering trusted protection for every stage of life.