Health-conscious adults have the benefit of signing up for a life insurance policy and making some wise lifestyle changes to lower their premiums. Indeed, healthy, young adults have access to the best life insurance rates. Children, however, don’t have as much control over their health and lifestyle and rely on their parents’ wise decisions to provide for their future.
As well as thinking about life insurance for parents, it’s important to consider life insurance for children too. In this post we’re going to talk through some of the options when it comes to life insurance for families.
Signing up for a life insurance policy can be overwhelming enough, but for parents of young children or those reviewing their current policies, adding coverage for their children can be pretty confusing. While whole life insurance may seem like a better deal, there are a couple important factors to consider. For many parents, adding a term life insurance policy for their children is a much sounder investment. Note that this can only be done as a rider; policyholders cannot buy separate policies for their children. Take this quiz to learn more about the process.
Whole life insurance is a good option for a child presenting with health complications that will likely worsen over time. This ensures that the life insurance policy is locked in; premiums won’t increase, and the death benefit will remain the same for the child’s entire life. However, this is also what makes a whole life policy inadequate in terms of long-term financial security. Remember these important differences and carefully consider the pros and cons the next time you review your policy with an agent. Visit Health IQ for more information about whether term life insurance or whole life insurance would be better for your kids.