How Do I Explain Insurance to Children?

Explaining things properly to children is important.

Insurance is a complex subject for adults, and it's even more complex for children. However, it's important for everyone to have at least a basic concept of what insurance is, as it plays a major role in everyone's life. So when your child asks about insurance, it is important for you to be able to explain it to him in an understandable way.

Instructions

1. Wait for your child to ask about insurance. If you approach it like a lesson, she will not be interested or engaged. Also, if you let your child ask questions, then you can answer with "yes" and "no," which is easier than explaining from scratch.

2. Tone down your vocabulary. You need to make sure you only use words that your child can understand; otherwise, the concept will be lost.

3. Break insurance down into its basic elements. Rather than discussing premiums, co-pays and employer contributions, explain insurance in its most basic form: pooling money to minimize risk.

4. Use applicable situations. School is an excellent example; since it is such a major part of your child's life, examples set here will be easier to understand.

5. Take your time. If your child doesn't understand insurance the first time you tell him, it's not a big deal. Unless he's in his twenties, he is not going to need this knowledge right away. So once you've explained it, be prepared to bring it up again and answer questions about it.

References

• Savvy Daddy: How to Explain Things to your Child in Ways they Understand