Elders' advice would be based on what they had done in the past. Financial advisors would suggest only those products that they are dealing with. Friends, who advice, have mostly sailed the same boat that you are currently in.

Being in an emotionally charged state, a lot of parents are influenced by this advice, on the basis of which a decision is made. But this according to me would not be the most rational way to arrive at the best solution that would ensure the future of your child.

The first thing that the parents need to realise is the clear objective. Building enough financial resources, that would secure the financial future of their children. In this a critical element is planning for risk. The risk is that of the life of the earning member.

The life insurance cover taken should be sufficient to also take care of the child's future. Once this is done, the next step is investing for the child's future needs.