Question

Study the following case/situation and express your opinion.

Mr. Sadagopan is a businessman he has two factories in Indore and Bhopal. He lives in Bhopal with his wife and two daughters aged 5 and 8 years.

1. Can Mr. Sadagopan take life insurance policy for two children? 
2. Is child insurance is suitable for a wife of Mr. Sadagopan?
3. Which type of insurance should Mr. Sadagopan take for protecting his factories from loss due to fire?

Answer 1

1. Yes, Mr. Sadagopan can take life insurance policy for his children. In particular, he can purchase child insurance policy for them. It is a saving cum investment plan designed to meet children’s future financial needs.
2. No, child insurance is not suitable for a wife of Mr. Sadagopan. This is because child insurance policy enables to meet child's future financial needs and his wife is not a child.
3. Mr. Sadagopan can take ‘fire insurance policy’ for protecting his factories from loss due to fire.