No one likes to think about dying and leaving his or her loved ones behind; however, you should plan in case tragedy should strike. Purchasing a life insurance policy is essential show that your beneficiaries are not left with huge financial obligations. The main purpose of getting a life insurance policy is to make sure that your family is taken care of financially in the event of your death. However, some people obtain a life insurance policy for their children. You might have even thought about obtaining a life insurance policy for your kids, but you might want to consider your options to see if a child life insurance policy is a good idea for your family. You will do anything in your power to keep your children safe, so research your choices before you choose to purchase a life insurance policy for your kids. You want to make sure that a children’s life insurance policy is necessary and that it would be beneficial to your family.
Some people think that a life insurance policy for a child is not necessary because children have no assets or income. Children have no dependants to support and do not have a job, so many people think that a life insurance policy for your kids is a waste of money. However, funerals can cost a significant amount of money; therefore, it is debated that you need a children’s life insurance policy to cover the cost of the funeral and burial, as well as any medical bills that might occur.
CHILD LIFE INSURANCE PLANS OFFERED
If you look around online, you will find that there are numerous children’s life insurance plans, such as Gerber’s Grow-Up Plan and Globe Young American Plan. Both plans are intended for small children and offer:
Grow-Up Plan:
• Complete coverage of $5,000, $10,000, $15,000, $20,000, $25,000 or $30,000
• Fixed low premiums for the life of the policy
• For the same rate, coverage doubles at the age of 21
• Builds cash value as long as the premiums are paid
• At age 21, extra coverage can be obtained Young American Plan:
• For $5,000 to $25,000 coverage, you only pay $1 for the first three months
• Whole life insurance policy for the duration of the child’s life
• Premiums are fixed for life, and rates depend on the age of the child
• No physical exam is required, and online application process is quick
• Coverage begins immediately
OTHER OPTIONS FOR CHILD LIFE INSURANCE POLICIES
Instead of buying a child’s life insurance policy, you could decide to add a “child death benefit” to your life insurance policy. Because it only costs about $5 extra each month and provides coverage of $10,000 for each child, it is a tempting offer.
This type of rider states that the policy can be transferred to their own policy once the children become and adult. You can take the $10,000 and convert it into another policy in which the child can take control.
One of the best things that you can do for your child is to make sure you have enough life insurance protection and research the types of insurance policies available. A term life insurance policy might be a good idea if you want the lowest price. Shop around, compare prices and obtain a free quote. Keep in mind that cheaper is not always better, as you will want to look at everything covered in the policy. Hopefully, you will not have to use the policy; however, it is best to be prepared in case the unthinkable should occur.