If you are supporting a family and do not have traditional life insurance coverage on yourself we urge you get call us and get coverage immediately.
Children do not typically support the family financially, so life insurance to replace income is unnecessary.
However, children’s life insurance can help cover the cost of funeral expenses and possible medical expenses. This type of coverage can help reduce stress by eliminating the financial burden associated with this type of loss. A family does not need added stress after the trauma of losing a child.
Getting permanent child life insurance when they are young and healthy can also help guarantee coverage for them in the future without the need to go through future medical exams or other criteria.
Also, premiums are generally much lower when purchased as a child verse purchased as an adult.
Nonetheless, most can and do get insurance later in life and getting insured at a younger age just adds an added level of protection.
Some use a children’s insurance policy as an investment vehicle for their children, while also providing the added benefits of future insurability and covering the costs of possible funeral costs to them. A permanent insurance policy can be a nice gift to your child. You can pay the premiums over a specific time period, (e.g ten year) and never have to pay a premium again. If you get a permanent policy, it can build up a cash value tax deferred. Overtime, this policy will have real value and provide safety for your children’s future family.
However, a child’s life policy should be to act as insurance because there are better investment vehicles to use if you purely want to provide savings for your child.
It can be a great gift to your children. However, depending on you situation, it may not be necessary. If you want to guarantee future insurability for you children, receive a lower premium than your child would get later in life, child life insurance may be for you. If you are worried about covering final expenses, a small term policy could also be beneficial and be inexpensive.
Typically, yes, you can add a rider to your own life insurance policy to cover your children. If your specific policy does not allow for it, you can get a separate policy.
If you have questions, call us and we will help assess your specific situation.
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