Life insurance for the sake of the children is only as important as your dreams or the cultural expectations may dictate in your social strata of society. Education, weddings, down payment on a first home and an emergency fund are only a few of the items that generally are integrated into child planning for the future.
If the question is regarding life insurance on a child, then final expense for funeral and medical expenses in the case of a childhood tragedy. In could be justified that educational outlays, or other large financial commitments born by the parents, would be reimbursed by the proceeds from a child’s death claim.
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Why is life insurance important for a child? It creates the cornerstone of a financial plan for their lifetime while they're still wetting their pants. What a parent can do for a child is create a policy that grows over time and can give a child future options for additional insurance that cannot be denied by the insurance company. One of the most powerful gifts you can do for your children is take away an insurance company's ability to say "no" down the road to your child when they wish to increase coverage.
There is three reasons to insure a child with permanent life insurance. First, the reason no one likes to think about, but a child's death is devastating on all levels, but is a possibility. Not having the money to bury a child just adds extra hardship during an extremely difficult time. Second reason is to protect the child's insurability. Once the child has a life insurance policy, they can in most cases increase face amounts without proof of underwriting. This is crucial to a child diagnosed with type I diabetes, cancer or even worse. The third and final reason to insure a child with life insurance is the cash value. Not only can you use the policy as a teaching moment for the child to learn to save but the many uses as the child grows into an adult. Cash value from a life insurance policy can be used for emergencies, hardships, as well as college, a down payment on a first house or even retirement. Child life insurance is so affordable and important, every parent should strongly consider it for their children.
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If the question is regarding life insurance on a child, then final expense for funeral and medical expenses in the case of a childhood tragedy. In could be justified that educational outlays, or other large financial commitments born by the parents, would be reimbursed by the proceeds from a child’s death claim.