The price of life insurance for children is very low, possibly as low as it will cost for that person for the rest of his or her life. So one reason people buy life insurance for their children, is to lock in a low rate for them for the rest of their lives.
Another reason is to make sure that they get reasonably priced coverage while they still qualify for it. This can be especially important for families where type 1 diabetes, heart disease, or other genetic conditions may run in the family.
Finally, some people buy life insurance for their children because, if the unthinkable would happen, they would not be able to give their child a fitting funeral without it.
President, The Firm of Steven H. Kobrin, LUTCF, 6-05 Saddle River Rd #103, Fair Lawn, NJ 07410
Here are two good reasons to buy life insurance on children:
1) They enter adulthood already insured. This means that at the time they want to get married and buy a house, they have insurance already in place. They do not have to go to market and pay a rate at their current age. You and I would have really appreciated saving that money when we were qualifying for a mortgage. In addition, what if they unfortunately have come down with a medical condition, or a taken on an adventurous hobby like scuba diving? That would cost extra premium. They can save money there too.
2) The right life insurance product can grow substantial cash values over time. A whole life or strong universal life policy taken out on a minor, and then left to grow over decades, can yield a huge amount of cash. This can be used to supplement retirement, pay for college-education, start a business, and many other needs.
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Another reason is to make sure that they get reasonably priced coverage while they still qualify for it. This can be especially important for families where type 1 diabetes, heart disease, or other genetic conditions may run in the family.
Finally, some people buy life insurance for their children because, if the unthinkable would happen, they would not be able to give their child a fitting funeral without it.
1) They enter adulthood already insured. This means that at the time they want to get married and buy a house, they have insurance already in place. They do not have to go to market and pay a rate at their current age. You and I would have really appreciated saving that money when we were qualifying for a mortgage. In addition, what if they unfortunately have come down with a medical condition, or a taken on an adventurous hobby like scuba diving? That would cost extra premium. They can save money there too.
2) The right life insurance product can grow substantial cash values over time. A whole life or strong universal life policy taken out on a minor, and then left to grow over decades, can yield a huge amount of cash. This can be used to supplement retirement, pay for college-education, start a business, and many other needs.