While parents usually buy life insurance policies for themselves to financially protect their children, they often don’t consider it important to buy life insurance for their children as well. However, there are a number of reasons why your child may need life insurance coverage:
Guarantees Insurability at A Later Age
When an adult applies for life insurance, the insurance company only approves the application if the individual does not pose a high risk to them. So, for instance, if the applicant suffers from medical conditions like cancer or diabetes, their application can be turned down. Purchasing a life insurance policy for your child ensures that this won’t happen to them. Thus, regardless of the health complications your child may develop when he’s an adult, he will always be covered.
The Premium Remains Locked In
The premium for the policy will remain fixed throughout the policy term. So, if your current monthly premium comes up to $10, it will stay the same until the end of the policy term.
It Is Affordable
Purchasing a policy with a low coverage amount is quite affordable. For instance, for policy amounts of $5,000-$15,000, you may have to pay between $5-$15 every month.
Helps You Pay for End-Of-Life Expenses
Funerals can be expensive. If you happen to lose your child, the payout offered by the policy will ensure that you are able to pay for the funeral without taking a loan.
Provides Financial Security
The loss of a child can be devastating. The payment provided by the insurance company will help you and loved ones grieve the loss of your child, without having to worry about returning to work immediately.
Can Build a Cash Value
If you purchase a whole life insurance policy, it will build a cash value. By the time your child is old enough, this cash value is likely to have grown into a substantial amount, which can help them pay for their college tuition, wedding expenses, or to set up a business.
Most importantly, purchasing a life insurance policy for your child gives you peace of mind. Make sure to inquire about the terms and conditions of the policy before buying it.