Buying Life Insurance is really for two reasons, one if for the unfortunate, the childs death. The other is as a gift of life as I like to call it, something you can give them in the future. Especially if you design the policy such as Whole Life to build cash value over time. This can be used in the future for the child's future family, to help pay for college and more.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Make sure that there is enough life insurance on the mother and father. If that is the case determine the reason for the life insurance. It could be that the policy is for “final expenses.” Sometimes life insurance is sold to juveniles as a way to protect their future insurability. The best way to buy the policy is to go to a trusted insurance agent. If you don’t already have one, get recommendations from friends, colleagues and neighbors. The agent should listen to your needs, give sound financial advice and communicate clearly with you and the insurance company.
Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
Always be sure to be well protected as parents before thinking about buying life insurance for your kids. That having been said, once a child is covered by a life insurance policy, that child's "insurability" is protected so long as that policy is maintained. That means that as her or she goes through life, should they develop a serious medical condition that might otherwise make them potentially uninsurable, like Crohn's for example, the coverage they have cannot be taken away from them. Further, if a permanent plan is purchased for your child, that policy will develop cash value over the years that can further help their future financially.
President, Lane Independent Agency, Southern California
Wow. What a wonderful and popular question with a great answer!
Children's rates are the very lowest there are. By locking in a guaranteed rate on whole life for the child's entire life, you will never have to worry about medical issues or insurability issues. The parents and later the child themselves, will have the lowest premium guaranteed. Insurance will accumulate value with whole life, so they can borrow against it for college or even fund retirement. Think of all the sick and uninsurable children out there who wish their parents had purchased life insurance for them before they got sick.
Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
That is a good question! There are a number of excellent reasons to buy life insurance for a child! Life insurance is like buying money at a huge discount... If you buy the right kind of life insurance from a mutual company. That is whole life insurance. The younger the insured is the less the premium will be assuming the person is in good health. So even if you buy a smaller policy it will have a longer time to accumulate cash value. And that cash value grows tax-FREE! And may be accessed tax-Free as well when the 'child' is older. Or if you retain ownership of the policy YOU can access the cash value to pay tuition for their schooling or whatever you decide. The policy could also be used to contribute to the "child's" retirement income when that happens! I could go on and on, but you should talk with a knowledgeable insurance adviser.
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Children's rates are the very lowest there are. By locking in a guaranteed rate on whole life for the child's entire life, you will never have to worry about medical issues or insurability issues. The parents and later the child themselves, will have the lowest premium guaranteed. Insurance will accumulate value with whole life, so they can borrow against it for college or even fund retirement. Think of all the sick and uninsurable children out there who wish their parents had purchased life insurance for them before they got sick.