Many parents think that they should buy life insurance as a financial plan for a child. This is a bad idea. It is an idea that is planted to them by an insurance agent who wants to earn commission to sell any insurance policy. So, buying insurance for a child, e.g. to fund for university education, is one of these ideas. It is better for the parent to invest the savings in one pool, to be used for a variety of purposes (one of which is education expenses). It is important that the savings should be invested in a flexible form and should produce a fairly attractive yield. Most life insurance policies in the market fail on both scores - i.e. they are inflexible and provide a poor yield. Read this FAQ about financial planning for a child. Read this FAQ about personal risk management for young people.......