Should I Buy Life Insurance for Children?

A child studying

Every parent wants what’s best for their child. Financial security plays a major part in it, and besides getting them the best education possible, a reliable life insurance policy is important. Many people assume that life insurances are only for adults, but they have major advantages for kids as well. Here’s all you need to know about the best life insurance for children and what they offer:

The Advantage of Lower Premiums

It’s common knowledge that the older the person acquiring the insurance, the higher their premium is. As we get older, the likelier we are to get into a situation where we’ll need that reliable life insurance company payout. With that said, children generally have the lowest rates for insurance policies which tend to stay at the same rate for a long time.

Cash Value and Living Benefits

If you’re able to pay your premium on time, you can earn cash value from your life insurance policy if it’s a whole life or universal policy. You can borrow from it or withdraw the amount, allowing your children to take advantage of it for various aspects like college expenses and financing for various loans such as getting a vehicle or paying for their wedding.

Ensuring They’re Insured

One of the biggest advantages of getting a permanent life insurance policy when kids are young is that they get access to great coverage for their health. As they grow older, several health conditions are likely to make it difficult for your child to get a good health insurance policy. You can never entirely rule out any health complications and ensure that your children have some coverage for their future by opting for early insurance.

Guaranteed Insurability

Another great aspect of life insurance policies for children is the fact that they often provide insurability rides for an added cost. When your kids grow up, they can use the rider to purchase extra life insurance that’s above their policy’s current value. This life insurance does not focus heavily on the person’s current health condition.

A child with their parents

Image filename: parents-with-child
Image alt text: A child with their parents.

But it’s important to know that as the child ages, they will have to get a different policy and purchase fewer dates under the rider. Some policies have age restrictions for the rider that you should be aware of.

Locked-In Rates

The main reason why people get life insurance for children is that they’re fairly inexpensive. Getting life insurance for a child allows you to keep a very low rate for the policy’s lifetime. Generally, making timely payments ensures that the policy stays the same. It’s important that you consult a reliable life insurance company to educate you on various aspects, considering policies can vary depending on the company you work with.

When Can You Buy Children’s Life Insurance?

Children can get insurance coverage as early as the day they turn 15 days old. You can buy a policy for your kids or your grandchildren as soon as they are eligible, with the policy lasting until their teenage. Different insurance providers have varying cut-off ages depending on their policies. If you’re planning for a child life rider to your policy, the cut-off can be extended a lot longer, and the exact number depends on the company you’re working with.

Financial Security When Mourning

While no financial security can make up for the loss of a loved one, the mourning period can be fairly challenging for people. Some people take more time than others to return to work and deal with many aspects, including finances. It can help to have insurance with the death benefit providing you some cushion amount that allows you to grieve on your terms and proceed with things without worrying about another thing.

Work with Us

With proper life insurance for your children, you can look out for their best interests and set up a great future for them. It’s necessary that you work with a good life insurance agency that has your best interest at heart. Reach out to us at Franklin Life & Annuity right away. We provide all the necessary information as well as a variety of options that you need to ensure that your affairs are dealt with properly after your passing. If you need life insurance for the entire family or require final expense insurance, our services can assist you.