Should You Buy Life Insurance For Children?

Life insurance for children can be a sensitive subject, because for many just the thought of a child dying is upsetting and planning for this event just seems wrong. So why do life insurance companies offer these policies, and why do parents buy them?

Life insurance for children offers a number of benefits besides the death benefit. If you buy a policy when your child is young, the premium rates will be much lower than if your child purchases the exact same coverage as an adult. The premium rates are normally locked in as well, which means your child will pay the same rates no matter how old they get. The costs for these policies may be as little as a dollar a month or less if you purchase the policy when your child is still an infant. As an adult your child could pay a dollar a day or more without a previous policy in place. Life insurance for children is normally purchased so that your child will always have access to life insurance coverage at a very low cost no matter what happens in the future. Whole life also offers a cash value component which grows over time, so you are also providing a built in savings account. As your child grows, so will the value of the savings component.

Purchasing life insurance for children is an important step towards giving them financial protection for life. Even if your child is diagnosed later on with a medical condition which makes life insurance costs much higher, they will have the policy that is already in effect without any cost increases. Even though you do not want to think about distressing situations that involve your child, being a parent means being prepared and teaching your child good financial habits. Starting a life insurance policy for your child can often be the best possible gift you can give them, and it is one that will save them every year as adults. Getting a policy on your child is not inviting bad luck; rather it is excellent parenting and financial planning instead.