Should you consider buying juvenile life insurance for your children? After all, children rarely die when they’re young. However, it is an inexpensive way to protect your family just in case. And if you buy a whole life policy, you can provide your child with a nest egg for later in life.
Why Would I Buy Life Insurance for My Children?
The main reason for buying life insurance is to replace income in case a breadwinner dies. Most children don’t earn an income, so do they still need insurance? In fact, there are several reasons for buying insurance for your children:
* To lock in a rate so that life insurance remains affordable for your children if they choose to continue the policy when they are adults.
* To ensure that your children will have it if they later develop an illness and become uninsurable.
* To help with future financial needs by providing a cash value policy that adult children can borrow against to pay for college, buy a home, etc. Alternatively, adult children can close the account and withdraw the money.
Finding Affordable Rates for Life Insurance
If you have life insurance for yourself (and you should be fully insured before you buy it for your children), you may be able to add a child death benefit rider to your existing policy. Such a rider usually provides only $5,000 to $10,000 worth of coverage, but can be enough for funeral expenses and is very cheap
Another option is to buy a separate policy for your children. The best way to find an affordable policy is to go to an insurance comparison website. On such a website you can fill out a simple online form and you’ll then receive rate quotes from multiple A-rated insurance companies. You’ll be able to compare those quotes at your leisure and choose the most affordable policy with the best coverage.
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