These cases are rare, but you may benefit from buying life insurance for your child if:
If you need to ensure your child’s life, adding a child rider to your term life insurance policy is simpler and cheaper. A child rider provides a death benefit if any of your children pass away without the complex investing component and can be converted to a permanent policy in the future if your child needs lifelong coverage.
Although it may feel odd to think about life insurance for your child or children, the benefits can go far beyond what we traditionally consider the younger you lock them into a policy. Here are just a few.
When you purchase life insurance for your children, you guarantee they have insurance protection at the best price – because life insurance is less expensive the younger and healthier we are. And let’s face it; we were all at our prime when we were younger!
It is better to buy life insurance for your children when they are young and healthy. This will provide them with insurance coverage no matter what health conditions might develop in the future.
Having life insurance is vital because it provides a foundation for financial security. Let’s look at what you hope your child will accomplish in life; college, marriage, home ownership, children of their own, owning their own business, funding their own children’s college, and retirement. Life insurance can help with all of these because of its cash value over the years.
When your child is ready for college, a loan can be taken from the cash value to help pay for college expenses. Likewise, a loan can be taken from the cash value when your child is ready to purchase that first home and needs funds for a down payment.