Our kids are important to us and hold a very special place in our hearts. We are the ones who gave life to them, and naturally we want to make sure their lives are the best they possibly can be. We want to ensure their safety and well-being. Here are three great reasons to buy life insurance for you child in order to help protect them.
If you have a child or are expecting one soon, it may behoove you to consider taking out a life insurance policy for them
If you have a child or are expecting one soon, it may behoove you to consider taking out a life insurance policy for them. It will help to ease some tension during a hardship, and sets them up for success in multiple ways in the future. For more information, speak with a licensed life insurance agent in your area.
1. Helps Cover Final Expenses
Medical bills and funerals can get expensive these days. With these heavy costs, you want a source of income to keep you from depleting the funds you already receive month to month from your place of work. 1
It is emotionally taxing to deal with the death of a child, but life insurance can give you a financial cushion, allowing you to focus on grieving rather than questioning how you will get by.
2. Later Qualification for Life Insurance
Unfortunately, sometimes children get diagnosed from a young age with long-term health conditions. By buying life insurance for them early on, you increase your chances of their illnesses being covered. Not to mention, it sets them up in the future to be able to qualify for life insurance if they want to renew a term life policy, given they don’t have a whole life policy. 2
Getting life insurance for your child sets you both up for success in tackling any death related finances.
3. Savings Can Accrue
While a whole life policy can be beneficial in many ways, one benefit it holds is the added cash value. Over time, money can accrue and act like a savings account for your child, though it is a tax deferred withdrawal. 1
Decades down the road, after it has been given time to develop, your children may withdrawal funds if they feel as though it is the right occasion, like they are tight on money.
- Forbes, The Hows and Whys of Life Insurance for Children, 2016
- NerdWallet, Life Insurance for Children: the Cases For and Against, 2018