As a parent or guardian, the last thing you want to do is consider a reality where your children are no longer with you. However, getting life insurance for your child is something a lot of parents do think about.
Before committing to purchasing a policy, it’s important to weigh the pros and cons by asking yourself a few questions. Continue reading for six questions that will guide you through determining whether or not a life policy for your child is right for your family.
1. Will Your Child Grow to Be a Healthy Adult?
All you can hope for your children is that they grow up happy and healthy. Unfortunately, health is not a certainty in life. Your child may grow up to face health issues later in life. If that is the case, they may have difficulty getting a life insurance policy as most require a medical assessment.
To avoid this fate for your child, you can get them a whole life policy for them now. This policy will assure guaranteed insurability as an adult, regardless of any health conditions they may develop. As its name suggests, whole life insurance provides protection for the child’s whole life.
2. Will Your Child Pursue a High-Risk Job or Hobby as An Adult?
Parenting books always stress the importance of supporting your child’s dreams and guiding them on their journey to becoming who they want to be. But what if they want to be firefighters, astronauts, or skydiving instructors? And what does that mean for their life insurance?
If your child were to pursue a high-risk hobby or career, then their life insurance options as an adult may be limited. The life insurance companies have to weigh their risks, and someone constantly put in danger for their job is a significant risk. However, if your child were to have a whole life insurance policy, they would be insured regardless of what career or hobby they have as an adult.
3. Will Your Child Be Able to Afford Life Insurance as An Adult?
Insurance companies determine life insurance premiums by varying factors such as age and health status. For the most part, children are pretty healthy. And their age is, of course, not an issue. By being proactive, you could secure your child’s low rates for life. In other words, the premium rates lock in for life, so your child can keep the policy as an adult and pay the same rates as when you bought it.
4. Do Life Insurance Policies for Children Have Cash Value?
As your child grows into an adult, so does the cash value of a whole life insurance policy. Over time, as you pay premium payments each month, the policy builds cash value. The longer that you and later your adult child, after they’re 21, own the policy, the more cash value the policy accumulates. When your child comes of age (21), they can turn the policy in and collect the available cash value. They can use it for anything. Should the need arise, they can also apply for a loan against the policy’s available cash value so long as they continue to pay the monthly premium.
5. What Happens to the Policy When the Child Turns 21? Does the Policy End?
When your child turns 21, the policy you’ve paid for years doesn’t just disappear. Instead, the ownership of the policy will automatically transfer from you to your child – along with the accumulated cash value.
Again, the longer you and your child own the policy, the more cash value there is to access.
6. What Happens If the Unspeakable Should Happen?
Unfortunately, life is truly unpredictable. You can’t pinpoint when these things happen, but what you can do is be prepared in the case that it does. That is the purpose of life insurance. It offers peace of mind to know that there will be financial protection should the worst happen.
One plan that answers all the questions above is the Gerber Life Grow-Up® Plan, which provides a valuable safeguard for you and your child. To learn more about this product, click here. You can also contact one of our licensed representatives who will discuss this product and answer any questions you may have about life insurance.
Life Insurance Questions?
We hope that this information on life insurance for your child is useful to you.
If you’d like to learn how we can help you plan your retirement, call Empower Brokerage at (888) 539-1633 to speak to one of our Life and Annuity experts or leave a comment down below.
Get affordable life insurance quotes by clicking here.
See our other websites: