Life Insurance for Children: Your Questions Answered
When thinking about investing in life insurance, it’s normal not to consider a policy for your children. However, by giving them a life insurance plan now, you could be protecting them in the long run. We talked to Blake McCoy, CEO of Independent Insurance Consultants, to learn about the benefits of life insurance for your child.
Q: My child is barely a toddler and healthy. Why does he need life insurance?
A: Children are able to get life insurance from 14 days old to 25 years old on certain policies. There are usually only two basic health questions asked when seeking life insurance for a child. They’re very simple, and almost always allow life insurance to be given. As those children get older, they will inevitably have physical things go wrong that could keep them from getting insurance. Having life insurance early guarantees them insurability for life without many questions. Plus, their rates will stay the same as they age.
Q: Are there financial benefits to getting life insurance for my child?
A: Yes, there are financial benefits in two ways. First, child life insurance is much more inexpensive than adult rates. For example, I have a $20,000 policy on my son and pay only $6.40 a month. Because the rate stays the same, the child will not be faced with burdening costs as he or she ages. Additionally, whole life policies (as opposed to term policies) build cash value over time that can be used for anything. This cash value can be taken out at any time to pay for costs like college tuition or a car—but maintain a life insurance policy at the same time.
Q: Having life insurance for my child is scary to think about. Can’t I put it off until they’re older?
A: Though we all don’t want to think about it, there are instances in which a child dies. In the horrible time following the death, parents must also decide if they have enough money to pay for a memorial service, casket and burial for the child. Some may have enough funds for funeral expenses and some may not. By having life insurance for your child, you’ll be able to cover these costs without worry.
As someone who was a patient in Children’s Hospital as a child and has now returned as a parent, I understand that it’s one of those things that not everybody wants to talk about. However, when you consider the rewards for protecting your child’s future and for when they’re a parent one day, it’s clear that you just have to take the five minutes to discuss it and get insurance quotes. It just makes sense.
Q: What are other ways I can protect my child with insurance?
A: As a parent and husband, having life insurance for myself is the best way to protect my wife and son if something were to happen to me. I don’t have to worry that they would have to pack up and move, wouldn’t be able to pay for college or couldn’t afford basic needs like daycare and clothes. I want my family to be able to continue on day-to-day as they have been. For parents, life insurance is a tool to provide for your family and make sure they’re protected if something happens.