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.
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.