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Child Life Insurance

Should you Purchase Child Life Insurance?

Parents have many things they worry about when it comes to their children, not the least of which is should they take out child life insurance on their children. There are arguments for and against this life insurance type, but when it comes down to it, it is a personal decision that you need to make based on your family’s circumstances.

The Necessity of Life Insurance for Children

Every family and their circumstances are unique. It is important that you evaluate your needs in order to determine your need for life insurance on your child.

Life insurance is used to help bridge the gap of losing an income the family depended on to maintain their style of living. This loss of income could be the primary or the secondary income. Since children are rarely in this category, many would argue that life insurance on a child is not necessary.

However, what about the expenses that would be incurred at the time of death? Expenses such as the cost of a funeral and burial or the expenses that might have been incurred due to a long illness or even a traumatic injury that resulted in death. Life insurance benefits can also help families cover these costs.

Another aspect to consider is your family’s health history. Are there any diseases or health conditions that are hereditary and affect your family? This might be a reason to look into life insurance on your children.

Life Insurance as a Gift

Some parents obtain a life insurance policy on a child with the intention of using it as a gift for the child when the child becomes an adult. This could be offered in the form of an annuity endowment, as the child grows older to be used for college education or a down payment on a house when the time comes.

How Does Life Insurance on a Child Work?

Typically, the life insurance on a child comes in the form of a rider to an existing policy that you already have on yourself. Benefits are provided upon the death for both the primary insured as well as the child who is insured.

Additional Benefits of Insuring a Child

In addition to the scenarios above, there is another benefit to obtaining child life insurance, which is the low rates that will be locked in. When a child is healthy, these rates are going to be amazingly low. The child will have the option of continuing coverage once they reach adulthood and still maintain low rates on a policy.

If you feel child life insurance is something that would benefit your family, do your research, get some online quotes and, talk to a licensed life insurance agent today.