Life Insurance for Children – Protect Their Future

Do I Need Life Insurance on my Child?   

As a parent, you want only the best for the child(ren) in your life. From making sure they eat their vegetables to helping with schoolwork and everything in-between, their well-being is your top priority. And purchasing a life insurance policy on a child’s behalf can be the first step in creating a bright future for them. It’s really a gift that can last a lifetime – or even longer.

Why is life insurance important for children?   

There are a variety of reasons to purchase life insurance for children, but here are three things to consider:   

  1. Children are often healthy in their younger years. Illnesses later in life can prevent a person from qualifying for life insurance coverage. By purchasing a policy when a child is young and healthy, they could continue to have coverage as an adult, even if they become uninsurable later.
  2. Certain types of life insurance policies can build cash value over time. This cash value is often used for college tuition, buying a house, weddings or even retirement.   
  3. Although it’s tough to think about, it’s important to have a death benefit should something happen. This can help pay for final expenses and give the family time to grieve.

What type of life insurance is best for a child? 

There are two permanent plan options for children, and both can include the Universal Guaranteed Insurability Option Rider. With the Universal Guaranteed Insurability Option Rider, it allows the child or parent to increase the life option seven times in their life without medical questions being asked in the future.  

  1. The Indexed Universal Life can offer the potential of more of an upside and flexibility of funding.  
  2. The Whole Life policy offers many attractive guarantees for the client.  

Both plans offer short pay options for clients that would like to have these polices fully funded by the time the child reaches adulthood.   

Another option to consider is adding a Children’s Term Life Insurance Rider to your own life insurance policy. This type of a rider is most often term insurance and builds no cash value, but what it does provide is the option to convert to permanent insurance at a future date. 

Is life insurance affordable for children?   

Life insurance can be sized right to fit any budget.  Policies can be as low as $10-$15/month or as high as $40-$50/month per child.   

Protecting against the unexpected 

The bottom line is life is uncertain. You cannot predict the future, but you can predict some financial security. When you purchase life insurance, you’re purchasing something that will have a lasting impact.

If you’re interested in learning more about life insurance, contact your local agent to learn about your options and customized coverage to fit your unique needs.