Why Buy Term Life Insurance for Children?

Should you buy life insurance for your children?

Many people don’t think so, but there are some sound financial reasons why you shouldn’t be so hasty to dismiss this notion out of hand.

Planning for the future is what life insurance is primarily about and even your children should be considered in preparing their way down the road.

Reasons To Buy Life Insurance for Children

Life is full of uncertainty.  It’s simply not possible to predict the future so here are some reasons why it might be in your best interest to buy life insurance for your kids.

1. Future Insurability

Today’s children are not as healthy as they were because lifestyles have changed.  Many children today live a sedentary life which does not bode well for their future health.  Child obesity is rampant in today’s society because of eating habits, lack of exercise and spending too much time with the tech toys and other devices.

What this means down the road is the potential for a whole range of health problems such as diabetes, heart disease, high cholesterol levels and high blood pressure.  Your children will grow up, start their own family and will need to buy life insurance just like you have right now.

If your children haven’t changed their lifestyle they could develop severe health problems by the time they are starting their lives.  The cost of life insurance could be prohibitive and costly for them when they do apply.

You could buy a $100,000 – 30 year term policy for the kids right now and will provide them with coverage so that they will have insurance policy well into their forties or even their fifties.  This will give them some coverage for their own families down the road.

2. College Aged Kids

What about student loans?  The cost of college and university is expensive and many kids have to run up a huge pile of debt until they graduate and start work.  The average annual cost of tuition runs anywhere from around $13,000 to $36,000 per year depending on the college they attend.  For a four year program that comes to an average cost of between $52,000 to $144,000 in debt that has been racked up.

But what were to happen if they were to die young?  It’s not something that any parent likes to think about, but sadly, tragedies such as accidents and disease do happen.  These debts still have to be paid.  A term policy would be the ideal solution so everybody has that peace of mind.

Save for The Kids Tuition

The other side of the coin is to consider buying something like a universal life insurance policy and start a savings plan while they are still young.  A permanent life insurance policy like a universal policy has a cash value accumulation feature which can be taken out as a loan down the road.

You start the policy when they are young and then you have the advantage of a non taxable savings feature which builds over time from both the premium and the interest earned.  Depending on the amount of life insurance you buy, this could easily build up to $50,000, a $100,000 or even more.

The children can use this cash value and either take the money out as a loan or even surrender the policy completely to pay off college debts or even use the money to buy a home or start a business.  It’s a great way to give them an early and welcomed financial boost in their young lives.

3. Affordability

Another good reason to buy life insurance for the children right now when they are still quite young is that the policies are very affordable.  You don’t necessarily need to buy a huge policy on your children as the policy can be as small as $5,000 or $10,000 which would only cost you about $5 – $10 per month if that’s all you can afford in your budget.

4. Preparing for Any Eventuality

Nobody wants to think about the worst case scenario and this is something that no parent wants to ponder or even imagine, but even young children die in accidents and terminal illnesses.

If your child were to become terminally ill, it’s simple but terrible fact that the medical bills could be astronomical.  Every parent would do whatever they could to get the best possible medical treatment for their child regardless of the cost.

Even with a medical plan, and getting hit with the double calamity of losing your child in the end, you could also end up being financially devastated from the medical bills which still have to paid.

And lastly, there will be the funeral expenses to consider.  As horrific as this worst case scenario sounds, it is something which is possible, and is something which we should think about preparing for now rather than when it is too late.

 Where Can I Find an Affordable Life Insurance Policy for My Children?

You always want to talk to an independent agent like myself.  We can access and research dozens of companies so you are assured we will find the best policy at the most affordable rates.  Whatever your concerns, we can give you valuable advice and help you to find a policy that suits you.

Whatever your needs or questions then please call me direct at 877 – 966 – 9383.

What is the Process to Apply for Life Insurance?

Getting your life insurance application approved and in place doesn’t happen overnight.

If you’re applying for life insurance there is a process that takes place before you get approved for coverage.

There are 3 different ways that you can apply for life insurance and they each have their own timelines which you should know about.

Before I describe them in detail there are a couple things you need to remember before you apply for life insurance

1. Never let an existing life insurance police lapse when you apply.  Until you are approved, which will take some time, because you won’t be covered.  You will leave yourself exposed.

2. Always make sure you give yourself sufficient time for the policy to be reviewed, approved and put in force.

Life Insurance Application Waiting Periods

There are 3 waiting period scenarios for the 3 different ways a life insurance application can be made and they include:

  • Life Insurance Application with No medical Exam
  • Life Insurance Application with Medical Exam but No Medical Records Required
  • Life Insurance Application with Medical Exam but Medical Records Are Required

Let’s look at them in more detail.

Life Insurance Application with No medical Exam (7- 10 Days Before Policy is Effective)

There are 3 steps when applying for a life insurance application which does not require a medical exam and they include:

1. Applying for Life Insurance

You have to phone and obtain an application form which would be sent to you the same day. Ideally, you will fill out the application and FAX it back to me the same day.

2. Phone Interview

A no-exam life insurance application requires a brief questionnaire be completed which is generally done over the phone.  This generally occurs within 1-3 days from when we receive your application

3. Issuing the Life Insurance Policy

The life insurance company is sent the application and phone questionnaire and then has to review and approve the application. This takes roughly about 2 days.

The life insurance company, upon approving your application, will send you the policy by mail which could take 2-3 days for you to receive. You may then be required to sign the policy and either mail it back, or return by Fax or email. The policy will then come into effect either the same day of the following day.

(NOTE) You should be aware that no medical exam life insurance policies tend to cost more than life insurance policies which require a medical exam. The reason is because a medical exam gives the life insurance company more medical information which makes you less of a risk.

If you want a cheaper policy then you should follow the application process described in the steps below.

Life Insurance Application with Medical Exam but No Medical Records Required. (Takes up to 2 Weeks before Policy in Place)

The quickest time frame this process could take place as follows and occurs only when the life insurance company does not require any medical records.

1. Applying for Life Insurance

This considers same day application that you request which is sent to you and returned by you on the same day.

 2. Taking the Medical Exam

When we receive you application, we will contact a medical examiner and they will phone you to set up an appointment which is generally done within 1-2 days to make the appointment.. (continued on page 2)