Being the caring and protective parent you are, perhaps you’ve been thinking about getting an insurance policy for your child. On the other hand, maybe there’s a small voice inside you discouraging from going ahead and buying the cover. Just hold on before you throw in the towel as far as pursuing the idea is concerned. Take just a few minutes of your time and see the following reasons as to why it is essential to buy a life insurance policy for your kids. It may make perfect sense to you after you read these points.
Let’s start with the first one.
1. It caters for funeral expenses, among other costs, when a child dies
No parent would want to imagine about losing their children to the cruel hands of death. However, considering that sometimes nature has to take its course, by all means, it is important to be open-minded and accept realities. In as much as you care a lot for your kid, death can be inevitable.
In case of a tragic event of the death of a covered kid, life insurance can pay out for funeral expenses, medical bill, family counseling expenses, among other death-related expenses. If your kid has passed on and you aren’t sure what you are entitled to, just hit up a life insurance beneficiary lawyer to review the terms and provisions of the insurance policy. The legal expert will be able to determine the exact coverage as well as the exclusions of the cover.
2. It gives you time to grieve
Losing a kid is one of the most difficult situations that nearly any parent can come to terms with. In case of such a loss, you need time to mourn at home. However, this grieving time might result in a significant loss of income, whether you are employed or run your own business. Fortunately, a life insurance cover on your deceased kid can offset the income loss.
3. For uncompromised insurability of the kid in the future
People with chronic illnesses such as blood pressure, diabetes, obesity, and cancer prevent people from getting insurance cover. However, if your child has life insurance right from their childhood with all the premiums paid appropriately, he/she will be able to obtain any other insurance cover later in life even when diagnosed with any or some of these illnesses.
Matt Schmidt with Diabetes Life Solutions notes “Many parents may wait too long to obtain coverage on their children. Once a child has a disease like diabetes, life insurance is not only tougher to find, but the premiums will be much higher. As an example, expect to pay 100% more on coverage for life insurance with type 1 diabetes. Because of this, extremely important to obtain a life insurance policy on your child, before anything may happen to them and make them borderline uninsurable.”
4. It can give a financial perk
Some whole life insurance policies allow the insured persons to withdraw a certain amount of money at a particular period. If you buy such a cover to your children while they are still young, particularly 1-5 years old, upon reaching 18 years, they can borrow off of the policy to do other stuff like buying a car or paying college fees.
5. You may opt for a rider
Besides having a life cover, you might want to give your kid another insurance cover that they can’t buy independently until they turn 18 for a different benefit. In as such, a rider on their life insurance policy will be very convenient. In case you don’t know, an insurance rider is just an extra coverage on top of a main policy, to insure something else apart from the primary insured thing (your kid’s life in this case)
Do you see why you need to buy a life insurance policy for your children as soon as possible? However, before you purchase the cover, it is important that you consult a fee-only financial advisor for impartial guidance on the best option according to your needs and financial status.