Children’s insurance – financial protection for your children

May 19, 2022.

Children are not yet able to look after themselves: they need protection and coverage to support them, should the worst happen. Children’s insurance is a sensible precaution in this respect. Pension expert Burim Muji is a product manager at Generali responsible for developing pension products. In this interview, he explains why children’s insurance is a sensible option and what benefits it brings compared to putting your savings in a bank account.

Burim, tell us, what is children’s insurance?

B: On the one hand, children’s insurance lets you comprehensively protect the child against unforeseen events, like accidents or illnesses, and the associated financial fallout. On the other hand,

you can also use it to build up capital for the child’s adult life.


What is your advice as a dad: how can you best protect your children?

B: Children are inadequately protected against the financial fallout of disability, which is why it is even more important to give children extra protection against this, too. To this end, I recommend taking out a pension for loss of earning capacity to secure an additional income for the child.


It makes sense to start saving early on if you want to build up capital. Let us assume that your savings goal is CHF 20,000. If you want to reach this goal within 20 years, you need to set aside CHF 1,000 a year. If you want to reach this goal within 10 years, thought, you need to set aside CHF 2,000 a year.


Another option is saving in investment funds: I recommend saving in investment funds, rather than a traditional bank account, as soon as the child is born. This is because of the low interest rates at the moment.


Finally, child allowances can also be used for savings if a family is on a good financial footing and does not need to spend child allowances on clothing, nappies, etc. Of course, you will need to look at all this in more detail to decide how you would like to save money yourself.


Financial protection for children: Burim’s tips


Tip 1: Get started with saving early


Tip 2: Save in investment funds


Tip 3: Use child allowances

What are the benefits of children’s insurance compared to a bank’s fund savings plan?

B: From my perspective, the greatest benefit is the risk protection for the child. Unlike keeping your savings in a bank, the accumulation of capital is secured with children’s insurance: thanks to the premium exemption, you will always reach the savings objective for the child. Why? Because if a parent dies or loses their earning capacity, the insurance continues to pay the necessary premiums.


What benefits do child insurance policies include and what should you be aware of?

B: The benefits can differ depending on the provider at hand. In principle, children’s insurance should include the insurance policy and a savings plan. This is important, in my view. Plus, you should pay heed to the insurance conditions, like: What exactly is insured? What exclusions are there? From when, and for how long, are the benefits paid?


Who can take out children’s insurance?

B: Children’s insurance does not necessarily have to be taken out by the child’s parents: anyone, such as relatives or godparents, can conclude this policy. Of course, the parents or their legal representatives need to give their consent, to protect the child.


Burim, Generali also has a children’s insurance product, the KIDS Insurance plan for children. What does this encompass?

B: Our KIDS insurance plan for children is a modular solution that combines three insurance products for comprehensive protection. It pairs risk cover with savings and cyber insurance. From my perspective, this is crucial in today’s digital age.


Can you describe the modules of the KIDS insurance plan for children in more detail?

B: Risk protection is based on a pension for loss of earning capacity, including a premium exemption, ensuring your child is well protected in case anything happens to them. With saving, you can build up capital for your child. Our investment experts invest your premiums in first-rate funds, and you can choose between three savings profiles: CAPITAL, CONTROL or PROFIT, depending on your security needs and returns expectations. With the cyber insurance module, you are protecting your child against the dangers of the internet.


In a survey, we discovered that lots of Swiss people are interested in sustainable investments. Is this an option with children’s insurance?

B: It is particularly important that we promote sustainability for our children, and, by extension, for our future. Various investment options are available within these savings profiles, and the PROFIT savings profile can be linked to our Tomorrow Invest sustainable investment plan. In this, we invest in a selection of listed companies that will have a significant impact on society and economy in the future, choosing them with an eye to sustainability-related criteria.


And to finish up: how much does the KIDS insurance plan for children cost?

B: As little as CHF 50 per payment. Combining a bank account and an insurance policy can also be a good option, enabling you to invest a minimum amount in the KIDS insurance plan for children and also have a bank account into which you can flexibly make further payments.



“Children are our future. With the KIDS insurance plan for children, we can sustainably secure their future.”


Burim Muji, Product Management Life Expert, Generali Switzerland

Burim completed his commercial training at Generali in 2004. He has worked for Generali since then and, in 2013, completed a bachelor’s in business economics at the Zurich University of Applied Sciences (ZHAW), alongside his job. He has been working as a product manager since 2014 and is responsible for product development in the life insurance segment.