Life insurance for a child may sound like a strange concept, and an uneasy topic to many parents and grandparents.
But the purpose of taking out a life insurance policy on a child is not an expectation of an early passing.
There are some very good reasons why it’s always a good idea to have life insurance for your child early in life, including benefits for the family.
A gift of very inexpensive life insurance at very inexpensive rates – for life!
When your child is young and healthy there is a bigger possibility they will qualify for preferred or better life insurance rates, and if you take out a Universal life policy those premiums won’t change as the child ages.
Once the child reaches the age of majority, they can take over paying the premiums and continue to have the policy available as they grow older, with no increase in premiums.
Even if they develop health problems later in life that might prevent them from qualifying for a life insurance policy, the existing one cannot be taken away.
Your child will have a life insurance policy that is good for a lifetime no matter what happens.
A gift of accumulating cash and lessons of savings – for life!
The sooner you start the policy, the sooner cash will start to accumulate in the account.
This can serve as a savings account that your child can contribute to, and an opportunity for you to teach your child the value of good saving habits.
By the time your child reaches the age of 18, a cash accumulation account started at birth can contain a sizable amount of money.
And as an added bonus they can have the means to fund their college education or a down payment for a home.
Protecting the whole family – because family matters!
No parent wants to think about it, but the loss of a child can mean the loss of one or both parent’s job or income because of emotional stress.
If a tragedy should occur, a life insurance policy can offer you the time that you need away from work to deal with the emotional and mental well-being of yourself and your family.
While this isn’t the main reason to take out a life insurance policy for your child, in the event of the worst case scenario, you will be grateful for the extra help.
So don’t be put off by the feeling that it is frightening to think about.
It is very advisable to get children Life insurance – The main reasons are simply smart planning, thinking ahead for your child’s future and it’s actually quite easy to obtain.
Content Disclaimer
Material discussed is meant for general illustration and/or information purposes only and it is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary therefore, the information should be relied upon when coordinated with individual professional advice.