In the past, many people have struggled to think about how their families would be taken care of if something awful were to happen. It’s not a fun thought! The pandemic acted as a wake-up call, of sorts, and many people have begun to do their research into investing in life insurance. Many parents are beginning to ask whether life insurance is a necessity for their children.
We have created this guide to help answer that question. Here we will discuss everything you need to know about life insurance for kids. From what it entails to the pros and cons, you’ll find the information you need to make an informed decision about life insurance for your children.
What Does Life Insurance For A Child Entail?
When it comes to life insurance for kids, insurance companies typically offer term life insurance policies. With this type of policy, your child will be covered up until the age of 18 or 21 (depending on the policy) and can be renewed or extended as they get older. The life insurance company will also provide a lump sum in case of death or critical illness/injury caused by an accident.
How Do Life Insurance Policies For Kids Work?
When taking out life insurance for kids, you will have to decide how much coverage to purchase and what types of policy you wish to include. You’ll then need to provide information including your child’s age, health history, and any existing medical conditions. It is important to note that life insurers will only insure healthy children, so those with any pre-existing medical conditions may be denied coverage.
Before getting life insurance for your child, make sure that you have your own life insurance policy. Some insurance companies require that parents must have their life insurance policy before they can get it for their children.
Pros And Cons Of Buying Life Insurance For A Child
Life insurance can provide much-needed financial protection in case of an untimely death or injury caused by an accident, but there are pros and cons when it comes to taking out life insurance for kids.
The Pros
- Financial security: Life insurance can provide the financial security needed to cover costs such as funeral expenses and medical bills.
- Tax benefits: Some policies offer potential tax benefits that make them an attractive investment.
- Low Rate: You will never get a lower rate on life insurance than when the child is a newborn. Starting life insurance young allows you to lock in a lower rate.
The Cons
- Cost: Life insurance policies are expensive, so you should make sure that you understand the full cost before committing to a policy.
- Medical history: Life insurers will only insure healthy children, so those with any pre-existing medical conditions may be denied coverage.
Choose Life Insurance with Bethany Insurance
Ultimately, life insurance is an important decision and can provide much-needed financial protection. By understanding life insurance for kids you can make the right decision for your family’s future.
If you are concerned about life insurance for your child, speak with Bethany Insurance today. We can provide you with the best advice for your family’s individual needs. With our help, you can make sure that your child is properly protected and secure in the future.
