Life Insurance Policy
Why Get Children’s Life Insurance For Infants or Kids?
When you have a young child or baby in the house, getting him or her life insurance may seem like the last thing you need to think about. If you have just become a new parent or grandparent, you may consider getting a policy on your own life to provide for the child in case anything happens to you. But you cannot see any reason why you would need to get a policy on the child or baby.
However, life insurance does have some uses. A policy can provide security now, and it can also provide future benefits to the new family member. Premiums for kids are really cheap! You can lock in low rates now that the child can enjoy forever. Even though the baby may not really need a policy now, he or she will probably want one in a few decades.
Some children’s life insurance policies will allow for the purchase of more coverage in the future, without having to go through health underwriting. A small, cheap policy that is purchased today, when the child is young, may allow him or her to purchase more in the future when he or she becomes an adult.
Some cash value policies can be paid up over a period of 10 or 20 years. A policy purchased now, and then paid up by the time the child is an adult, can be a gift of permanent security. Some policies do grow a cash value over time. Some people even use these policies as insurance, and as a sort of savings account. By making small premium payments over time, parents or grandparents may actually be able to use a policy like this to help build a fund for the future.
How To Buy Children’s Life Insurance
There are a couple of different ways to cover kids or babies.
The simplest tactic is to just add a children’s rider to an adult policy. These are usually very inexpensive. In this case, the rider may expire when the child becomes an adult. Look for policies that will allow the child to buy more coverage, without health underwriting when they become an adult. That way they can be covered now at a low cost, but still leave the door open for purchasing their own policy in the future!
You can also purchase a policy on the child. This can have some advantages too. It is helpful if you want to buy cash value policies (like whole or universal life) which will actually grow as an asset. Many people have purchased policies on children to help cover them, but also to provide a fund for education or other long term goals.
Compare Children’s Life Insurance
As with any other life policies, the rates and terms of the contract will vary by location, age, and some other important factors. It is important to understand the policy you are purchasing, and also to shop around for the best deal.