When discussing life insurance we often think of it as being applicable for adults in the family who receive an income. However, life insurance isn’t limited to the family’s breadwinners. It is possible to get life insurance for all members of the family. Let’s talk specifically about life insurance for children and what you should know if you are considering this as an option.
- Cost vs. Payout – When it comes down to the nuts and bolts of it, life insurance, just like any other insurance, is something you pay for hoping to never have to use. Life insurance is a security blanket. However, it’s important to consider the cost versus the payout. Typically life insurance policies are used to replace the income of the deceased family member. However in the case of a child, there is no loss of income.
- Coverage – Since a child’s life insurance is not used to cover a loss of income it can be utilized for other expenses that arise with the loss of a loved one. This could include medical bills, funeral and memorial expenses and it could cover loss of income that is caused by one or both parents needing time away from work to grieve.
- Lock in Rates – One thing that life insurance does for children is it can help them is to potentially lock in lower premiums for life insurance in the future. So, by purchasing life insurance for your child you may be helping their future spouse and children years before it is ever needed.
- Options – When discussing children’s life insurance it’s not hard and fast. There are options other than a full-blown policy. This includes options like adding a child rider to an adult’s existing life insurance policy as well as other options that can be discussed with the professionals at Care Financial if you are considering life insurance for your child.
- Ability and Health – When discussing children’s life insurance policies, you have to take into account family health history, the child’s health as well as the child’s level of ability. These are the types of things that may cause you to consider life insurance for your child.
Regardless of what choice you make regarding life insurance for your family, and specifically for your children, it is best to do plenty of research, consult an experienced insurance agent and financial planner to discuss all options to find the best fit for you and your family.
Care Financial is a privately owned and operated business providing families, individuals and businesses with comprehensive wealth management strategies. For more information about financial insurance policies, contact us online at www.carefinaicialonline.com or call us at 251-633-7122.