Having life insurance can make the world of difference to a family, if the worst should happen. Life insurance can help to provide financial protection for family members left behind, allowing them to pay funeral expenses, pay off large debts like a mortgage, or cover day-to-day bills.
While many people start thinking about life insurance for themselves when they start a family, there are also those who buy life insurance for their kids as well. Not everyone agrees with this idea of children’s life insurance – so, is it worth it?
As with many things in life, making the right decision will depend on your situation. There is much to be said for children’s life insurance, but that’s not to say it’s right for everyone.
Some people choose life insurance for their children as it allows them to build a financial safety net for their family. Some insurance policies can be borrowed against, and some allow policy holders to withdraw cash from their paid-in premiums.
It can also be used in the event of something bad happening to the child. Should the child get sick or have an accident, some insurance policies will cover them for medical treatment. And, while it’s not a topic anyone likes to dwell on, if the child were to die, then the policy payout could cover funeral costs and time off work for the parents.
This type of life insurance could be also of use when the child grows up and goes to the university. If something were to happen to the child, the life insurance policy could pay off large university debts accumulated.
Guaranteed Insurance Later
Parents also choose to buy life insurance for their kids to guarantee their insurability later on in life. For some people, insurance can be difficult to get – perhaps if they have an illness, or a dangerous job or hobby. Having the child life insurance policy means they will always have cover.
However, the costs of life insurance premiums can be off-putting for many parents. With so many other things to pay for in the child’s life, life insurance doesn’t always come top of the list.
While it’s never a good idea to bankrupt yourself to pay for insurance, there are several options if you do want to invest in life insurance. Getting a term life insurance policy means you can tailor the cover to suit your needs and your budget. And you can add a rider that will allow you to change the policy to a permanent one in the future, should you need to.
It’s also a good idea to shop around for the best deal (although going for the absolute cheapest option on life insurance isn’t always smart!). Always read the terms and conditions, and speak to an adviser if you are unsure of anything.
Getting life insurance for your child could be a great choice. Do some research to find out more, and then compare life insurance quotes to make sure you are getting the best deal, the best cover, and the best option for you.