The topic of life insurance for children is somewhat controversial. Many parents do not want to consider the possibility of something happening to their kids. However, buying children’s life insurance can have an array benefits for the child and the family.
There are a few main reasons why kid’s life insurance is purchased. Life insurance offers protection and is often used to cover burial expenses as well as things like medical bills. If using a permanent policy, such as whole life insurance, there is a cash buildup that may be used for future expenses such as the child’s college.
Buying life insurance early also helps ensure that the child will be covered by a policy in case his or her health causes him to be uninsurable in the future. What kind of insurance a parent buys for his child should depend on the main purpose of the life insurance policy. If simple protection and coverage of burial and other expenses is all that is needed, a basic term policy is probably appropriate.
Term life insurance provides coverage for a set amount of time and does not include a cash value. Term policies are typically inexpensive. Term life insurance for children can be used to make sure the child is insurable as he or she ages. This is especially important if there is a known risk of genetic disorders or diseases, such as diabetes or heart disease.
Renewable term life insurance allows the policy to be renewed once the original term ends and it expires. The premium is raised to match the age of the insured person, but proof of insurability does not have to be provided. Whole life policies for children are a type of permanent insurance, so this will also ensure future coverage as well as including a cash value. Those who would like to use a policy’s cash buildup for savings will need to get a permanent policy, usually a whole life policy.
This kind of policy will provide coverage as well as savings for the child’s lifetime. The cash value can be used to pay for college, living expenses, or other things in the future. All of these types of life insurance for children will at least be able to help pay for burial and other expenses. When choosing to purchase a kid’s life insurance policy, it is a good idea to use an online resource such as this to compare policies and quotes. An agent or broker is likely to try to sell his products or those of his affiliates. Comparing quotes can help you find the best policy for your family at a price you can afford.