Children’s Life Insurance
Relevant Life İnsurance Quote, There are two schools of thought on the value of children’s life insurance. Relevant Life İnsurance Quote The first one says that life insurance is not necessary as a funeral is not very expensive and there is no need for insurance other than perhaps a small amount to cover this expense.
The other school looks beyond this to other reasons for having children’s life insurance.
1 | It is possible that there are some hereditary issues in the family history that leads them to want to put some life insurance on their children to ensure they will have life insurance in the future – some issues may make it difficult to get the insurance in the first place which is where we help. |
2 | To guarantee that the child will be able to purchase at least $250,000 of insurance before the age of 25 if they become uninsurable or rated for any reason. This is happening more than one might imagine. |
3 | If a child passes it is frequently not sudden and the family could have incurred many expenses over this time period. Children’s life insurance will provide some funds to help and possibly for a memorial. |
4 | Some families appreciate the importance of life insurance for their children. Many of these families will purchase a plan where it is fully paid for in 15 or 20 years and the parents take on the responsibility of paying these premiums for this time frame. |
5 | A small number with good cash flow will purchase some permanent policy for their children for a modest amount of life insurance with the idea of stuffing as much cash as possible into it to create a policy with a lot of cash that is growing tax free. This cash in the policy is available when the child needs it in the future for university or a down payment. We would welcome a conversation on this if it would be of interest as it needs to be done carefully. |
There are reasons for having children’s life insurance that make sense depending on what it would cost. It is covering the above risks at the lowest possible costs that we address.
The Cheapest way to purchase Children’s Life Insurance
The cheapest way to cover the first two reasons is simply to add a children’s rider to your existing personal insurance policy provide that it is with a company that has a decent rider and that the coverage time period for your policy is long enough that it will not go through a renewal before your children would want to take advantage of the rider.
For example, if your children are under 15, you would not want to add the rider to a ten year term policy as you will be replacing it in ten years and it assumes that both you and your children will have the heath to qualify for life insurance in ten years. This is likely the biggest mistake that people make with children’s riders. The term of the policy is too short for the rider to be meaningful.
Two companies at this time offer the best children’s riders but this can change quickly so please call us if this is of interest. The advantage of these companies is that they guaranteed that the child can purchase up to $250,000 of any kind of life insurance at standard rates at predefined times up to age 25. The riders only cost between $5.00 and $10 per month depending on the company and number of children – one is a set rate for the family and the other charges per child.
For the third reason, figure out how much life insurance you would like to cover for your child and use our quoting engine to get a quote. I would suggest that you purchase a term product that will keep it in place to at least age 21 so a term 20 usually works. It is also not very expensive. These policies are always convertible to a permanent policy without a medical should the need arise. For example, a three year old gild could have $250,00 of Term 20 coverage for $18 per month and if they had a medical issue the $250,000 could be converted to a permanent policy for $60 per month at age 21 based on current rates. You can choose to insure more or less depending on your budget.
The final two reasons are more complex and a conversation would be in order to work through what would be best. However, a $250,000 policy can be purchased for a 3 year old female for less than $70 per month and it would be fully paid for in 20 years.
The vast majority of our clients do not purchase children’s insurance but there are valid reasons for doing so and, of those who do, most cover it with a children’s rider on their personal policies. Relevant Life İnsurance Quote We would welcome a conversation on this top, call us at the number above or complete the request for information form and we will look forward to helping you.