It’s quite normal for you to worry about your child as a parent. You are ready to do everything to keep your child healthy and raise him into a successful well balanced human being..
However, most parents balk at the idea of buying life insurance for their children.. Although they want to protect their child from any financial problem in the future, they are not sure how buying insurance can help them achieve that.
While there’s a strong debate about the benefits of such policies, having one can actually be a smart financial move to secure their future. Besides, it helps them purchase more life insurance later regardless of their health condition.
Why Should You Consider Getting a Life Insurance for Your Child?
Whether it’s ensuring their chance to get more insurance coverage later or just securing their finances, there are some valid reasons for purchasing permanent life insurance for your kid.
Qualifying for More Insurance Later
This is one of the most common reasons why most parents purchase life insurance for their children.
Your child may develop some health issues for which he/she can be denied to get coverage later. It’s better to get a comprehensive life insurance policy now when they are young.
By purchasing a comprehensive coverage, you can ensure that they will get some financial support when needed and can purchase more if they want.
You can visit some good websites such as Insurance For Final Expense to learn about different life insurance providers.
By purchasing life insurance from a renowned company you can make sure your kid will never be denied any coverage no matter what kind of medical conditions or illnesses they face in the future.
They are Affordable
You need to pay a certain amount every month as a premium for the insurance policy you have bought. The amount is decided based on a person’s age and health.
The older your child will be, the expensive it will become to get life insurance, which may not be affordable.
On the other hand, it doesn’t have to cost much to get a policy for a child. Anywhere from $5000 to $15,000 of coverage can be a good starting point, meaning that you will have to pay a maximum of $5 to $15 per month in premiums.
Locked in Rate
One of the best parts of getting whole life insurance that the premium is locked for the life of the policy. The rate will always be the same no matter how long they have the insurance.
This is extremely helpful as they will be paying the same $10 per month for a $15,000 policy you bought when they were kids. It won’t be a burden for them and they will be able to enjoy the benefits as well.
It Can Provide Funeral Expense
Accidents can happen at any time with anyone – no matter their age. In the event of the unthinkable horrific death of your child, you will need money to cover the expense of the funeral, medical bills, legal fees, counseling, etc.
In most cases, it becomes difficult for some parents to pay for all these costs as they weren’t prepared for it. Having life insurance for their child can cover all these expenses, while they are mourning for their loss.
The Insurance Can Create a Cash Value
Apart from covering your kid’s accident or other emergency expenses, a whole insurance policy can help them when they grow up as well.
Circumstances may change when they grow up and they may be in need of a sum of money to pay for tuition or maybe to make a large purchase..
The cash value or the savings component can grow tax-deferred, meaning that your child can borrow against it or surrender the policy for money when they need it.
The Future is Secured
As a parent, it’s quite normal to worry about your child’s future. They will need money for lots of things in the future, or to pay medical bills, or deal with a tragic financial loss.
Buying life insurance will make sure you don’t have to worry about the emergency money if anything happens. An insurance valued at $10,000-$15,000 would cover more than funeral costs if any tragedy strikes.
Besides, they might need the money for other reasons, and you will have the peace of mind that this coverage can take care of that too.
How to Buy a Life Insurance for Your Child
Once you’ve decided to get a life insurance policy for your kid, you may wonder which one you should go for. There are a couple of ways from which you can choose one at your convenience.
Term Life Insurance
Buying a term life insurance policy for you or your spouse lets you buy some coverage for your children as well.
You can do this by purchasing a rider — an extra policy feature at an added cost, which extends a small amount, such as $20,000, in life insurance to your children.
Term life insurance provides coverage for a certain period, such as 10, 20 or 30 years, and pays a benefit to the beneficiary if the insured person dies during the term. As there is no standalone term life insurance for kids, this is the only way to buy it.
Whole Life Insurance
You can buy a whole life insurance, which will act as a permanent life insurance policy for your kid. These are usually for smaller amounts, such as $50,000 or less.
Whole life insurance offers coverage for your kid’s entire life and includes a savings account that gradually builds value over time.
Although the premiums are much more expensive than term life it’s still a good choice. It’s because buying life insurance later will not only be expensive but also difficult when they are adults.
Life is precious. Life is unpredictable. You do everything you can to ensure your child’s lives are safe and they grow up to be wonderful healthy successful individuals. To protect your child from the unpredictable events and tragedy,you need insurance for them. . Getting an insurance policy for them will ensure they have the financial protection if anything bad happens.
Before you go for one, always investigate and verify if what you want out of the policy is true for the company.
Policies are different for every company. So make sure you ask a lot of questions, not just for now but to guarantee your children will get the most out of this policy even when they have a family of their own.