At first blush, taking out a term life insurance policy on a child might seem counterintuitive and unnecessary. After all, when you think of the typical term life policyholder, you probably think of someone who is married, possibly with children, and who has significant financial obligations. However, spouses and parents are not the only people who can benefit from term life coverage. Child term life insurance policies can be appropriate in many situations, particularly when you weigh its benefits against its modest cost. If you have children under the age of 18, read on to learn why term life insurance child coverage might be a smart investment.
Life insurance policies are mostly intended to replace the income the policyholder's dependents would lose in the event of his/her passing. But term life coverage also typically includes enough of a death benefit to provide for burial, funeral, and other final expenses. These expenses are not exclusive to adults-they apply to the deaths of children as well. For this reason, as a parent, you might consider taking out a child term life insurance policy for your dependents under the age of 18. The policy would help you pay for any last expenses associated with the passing of a child, so you do not compound your emotional burden with financial stress.
The chances that a child will pass away are very slim, which is why term life insurance child coverage is so affordable. Life insurers assume a minimal risk when they underwrite a child insurance life term policy, so they offer substantial amounts of protection with reasonable premiums. Because freestanding child term life insurance policies are relatively rare, most parents choose instead to add their children to their existing term life policy. Of course, the children have their own coverage, but their policies are attached to yours through the same life insurance provider. On LifeInsuranceRates.com, you can research the costs of both freestanding term life insurance for children and comprehensive coverage that allows both minor and adult policyholders.
Term life is ideal for children because it will provide the requisite coverage until the child comes of age. You can choose a policy whose term expires when the child reaches the age of majority. With regard to the amount of child term life insurance coverage you should purchase, think about how much of the cost of a death you could absorb without straining your budget. The average funeral and burial costs about $10,000, so you might want to use that as a starting point when you request your free quotes through LifeInsuranceRates.com.