Should You Invest In Life Insurance For Your Child?

Typically, investing in life insurance for a child is not recommended. Life insurance is essentially a form of financial protection for dependents when the bread winner dies. And since the heads of the family do not usually depend on children for income, it does not always make sense to spend money on life insurance for them.

But there are also important reasons for insuring your children. And if you’re well covered yourself as a parent and provider and can spare the cost, investing in life insurance for your child could be a smart move.

Before you decide if children’s life insurance is right for your family, consider these points below —

5 Reasons to Invest in Child Insurance

1. It secures coverage for health risks due to COVID-19

The pandemic is a wakeup call for many families to consider getting life insurance for kids to secure their insurability in case of infection or serious health risks associated with the COVID-19 virus.

2. It locks in low premium rates

Insurance premiums increase with each year of life. So, the younger your child is when you buy a whole life insurance policy, the cheaper it will be. You will pay the same low premiums from the time of your purchase up to the maturation of the policy.

3. It guarantees insurability

Insurability is guaranteed when you enroll a child for a policy to protect them in case they develop health problems later in life or if you have a family history of genetic medical conditions. Another benefit of purchasing insurance for children is that it guarantees insurability in case they take on a job or hobby in the future that insurers consider risky, for example – scuba diving or mountain climbing.

4. It will accumulate cash value

When you buy an insurance policy for a child, a larger portion of the premium will go toward cash savings. Because the cost of insurance premiums are so low, your investment will accumulate in value when your child reaches adulthood, giving them a financial head start.

5. It provides financial support in case of death

The chances of a parent surviving a child are low. But in case of a child’s death, insurance proceeds can provide much needed financial support to beneficiaries, for example, minor siblings, elderly or handicapped parents and relatives.

Final Thoughts –

Insuring children is a long-term financial commitment that could be better spent on supporting their well-being or establishing a family emergency fund. For high-income parents, investing in kids’ life insurance and placing them in a family trust is a strategy worth considering for estate planning.

Is Child Insurance the best option for your family? Consult our team at Crider Law and map out your family’s financial future through smart estate planning.


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