OREANDA-NEWS. October 03, 2012. According to SEB’s statistics, parents’ desire to build up a reserve of money for their children’s future, whilst providing a sense of financial security in the event of an accident with their children or the death of a parent, is getting stronger year after year, reported the press-centre of SEB.

Analysis by SEB reveals that parents prefer children’s insurance solutions that combine multiple insurance benefits and functions.

“Children’s insurance offers a parent multiple compatible covers in one package. Children’s insurance provides an opportunity to combine a children’s savings product appropriate for one’s financial means with need-based additional insurance, so that both the child and the parent are protected against unexpected risks that life may bring. Our sales statistics indicate that, compared to 2008, extra accident cover taken out on top of the core children’s insurance contracts is up by 26%, with the sums insured under extra accident cover up by 26% during this period. From this, one can infer that parents are conscious of accident risks that pertain to their children, whilst appreciating the medical costs that have to be absorbed once an accident does happen to their child,” said Indrek Holst, Chairman of the Board at SEB Elu- ja Pensionikindlustus.

Compared to 2000, there has been a doubling in the sums that parents insure their lives for should saving for their children’s future be interrupted in the unlikely event of the death of the parent who has taken out the contract. In 2012, the average sum insured EUR 5 662.

Since children’s insurance involves a long period of accumulation, in order for the target to be achieved and for the parent and child to be insured during the period, it is important for the parent to adhere to the payment schedule and to not discontinue accumulating or the insurance covers half-way through.