Life insurance helps individuals provide a financial cushion to survivors in the event that a policyholder passes away. Both you and your spouse likely need life insurance. It can help protect your children in case you are no longer there to provide for them. However, what about the children themselves? Do they need life insurance?
The fact of the matter is that a child’s life has financial value, too. In many circumstances, children need life insurance just as much as their parents. Take a look at the benefits of childhood coverage, then decide if it is right for your child.
Arguments for Child Life Insurance
Think about the amount of financial investment you will make in a child as they grow up. Education, medical payments, daily expenses. Should something happen to your child, would you stand to lose money?
No one wants to even consider the death of their child. However, if the worst strikes, a child life insurance policy might help the family financially in their time of need. Parent survivors might indeed have final expenses, like funeral or medical costs to settle. This is where coverage might help.
Furthermore, many parents invest in life insurance for their children in order to help the child’s financial security later. They might do this for a couple of reasons:
- Many life insurance policies contain accumulated cash value. Furthermore, the benefits are often tax-free. If a child has an existing policy, they or their parents may be able to cash in on the benefits when they need financial help. For example, a child might be able to use the accumulated cash value and benefits to pay for their college, buy a home or establish a financial cushion.
- Getting a child life insurance early may help the child keep this coverage later on. For example, a child without life insurance might develop a problem in later life that makes it hard for them to enroll in their own coverage. However, if the child has existing coverage, many insurers will enroll them in new coverage, regardless of existing health challenges. This may help the child save time and money searching for a policy.
However, there are arguments for keeping children off life insurance too. You still have to pay for this coverage and ensure that it will benefit a child later on. You might decide to go against child life insurance if you feel the risks are too slim to merit coverage.
If you feel that life insurance is a good fit for your child, call and talk to a life insurance professional with Agent 2000 at (925) 827-0510 about how to enroll the child in coverage. You might be able to add the child’s coverage as a rider to your own policy. Or, you might enroll the child on their own policy. Whichever route you choose, we can help you enroll in coverage. Talk to one of our team members to learn more about coverage.
Additional Life Insurance Information:
Getting Life Insurance as a Single Parent
How Does Your Life Insurance Policy Build Cash Value?