Should I Purchase Life Insurance for My Children?
I’m sure you are wondering why your child, or grandchild, would ever need a life insurance policy. Unless they have some Justin Bieber money stashed in their piggybank, what’s the point? There is much debate regarding the choice to purchase life insurance for your child. We will provide some insights to better understand the potential benefits of purchasing life insurance for your child.
Word of advice: More critical financial situations, such as adequate savings, retirement funds, college tuition fund, and your own life insurance policies, should come first.
Child’s Future Health
Guaranteed protection regardless of health
We want nothing more than for your child to live a long, healthy life. However, we all know how unpredictable life can be. If your child develops any health issues later in life, it may be difficult for them to obtain a quality life insurance policy. Preemptively purchasing a life insurance policy ensures that your child will have something to support them – regardless of any health changes. Protection for life.
Child’s Future Financial Status
Guaranteed cash value that grows
Life insurance policies allow for cash value to build over time. This additional value is set aside as each monthly premium is made. The longer that policy is owned, the more value the policy accumulates. Due to the percentage return on cash value compared to other tools, this should not be your child’s primary savings or investment tool. However, they will at least have the option to borrow against or turn in their policy for cash. This cash can then be used to cure any needed expenses, such as college tuition or a down payment on a home. It’s recommended that your child take advantage of the their policies head start and continue to let it grow.
Child Pursues High-Risk Activities
Guaranteed protection regardless of occupation or hobby
Your child can be, and do, anything they set their mind to. Therefore, we don’t want your child to be limited by the amazing things they set out to do. The world needs firefighters, astronauts, police officers, and soldiers. However, the high-risk involved with these careers limits the potential to receive life insurance policies. Setting your child up with a policy now ensures protection from their risky futures.
Peace of Mind
Should the unthinkable occur, we want to make sure those affected by such a loss are taken care of. Life is too unpredictable to neglect financial planning. If you are considering purchasing life insurance for you child, make sure you and your spouse have quality life insurance policies of your own. We all deserve peace of mind.