“Life insurance for children is a gesture of love that ensures their dreams are protected, no matter what the future holds.” - Suze Orman

Introduction

Children, like adults, can benefit from life insurance coverage. While discussions often revolve around the necessity of life insurance for adults to protect income and cover funeral expenses, it's crucial to recognize the value of insuring your children as well.

With that said, here are 5 essential points to consider when contemplating life insurance for your child.

1. Coverage That Grows

Investing in juvenile life insurance ensures coverage for your children from an early age. As they mature, they may access riders that expand their coverage at fixed rates, regardless of changes in their health. This provides a stable financial safety net as their needs evolve.

2. Building a Solid Financial Base

While tax-advantage savings options exist for retirement and college, similar opportunities may not be available for other significant expenses young adults encounter, such as purchasing a car, funding weddings, or buying their first home. The cash value of a life insurance policy can be utilized for these purposes, though it's important to understand that borrowing against it may reduce or eliminate the death benefit if not repaid.

3. Consider Policy Riders

If purchasing a separate policy for your child isn't appealing, explore the option of adding them to your existing life insurance policy through affordable riders. This can streamline coverage and potentially reduce costs.

4. Compare Before Committing

Don't rush into purchasing the first policy that comes your way. Marketing channels often inundate new parents with insurance offers, but it's essential to compare prices and explore different options. Consulting with an insurance professional or advisor can provide valuable guidance in navigating the choices available.

5. Providing a Safety Net

While we all hope for our children's health and happiness, life's uncertainties necessitate preparation. In the unfortunate event of a child's passing, juvenile life insurance can alleviate financial burdens by covering funeral expenses and providing parents with the means to take time off work, care for other children, and process their grief without added financial strain.

By understanding the importance and benefits of life insurance for children, parents can make informed decisions to safeguard their family's future financial well-being.

Checklist For Parents

I'd love to be selected as your financial advisor! Here is a quick checklist we'll walk through if you're contemplating life insurance for your children.

• Assess financial needs

• Understand policy options

• Determine coverage amount

• Consider riders

• Compare quotes

• Evaluate payment options

• Review policy terms

Ready to have a chat? Schedule a consultation today!