You’ve surely heard of life insurance coverage for adults. But have you also heard of life insurance for children?
Unfortunately, children are just as susceptible to medical emergencies and fatal accidents. In this case, a life insurance policy for them goes a long way in securing coverage in times of need. You will be surprised to hear that on average one out of five parents will take out a life insurance policy for their precious young ones.
Children are the most precious blessings of life undoubtedly. You strive to give them the best life and a life insurance policy will keep your mind at ease.
It’s important to note that these policies primarily exist for covering untimely death, the funeral, and burial costs. While it may be a painful truth to accept, the fact remains that tragedies can strike at any time.
If you’ve been wondering if it is a good idea for you to opt for life insurance for your child then you should consider certain factors.
Life Insurance – Who Should Consider It?
Considering a life insurance policy is necessary for some parents. Taking into account your financial stability and other personal factors can further determine the necessity of life insurance. We strongly encourage parents to consider insurance when they have a turbulent medical condition that runs in their family. Ultimately, it can be passed down to their child as well.
In the case of children, life insurance policies offer various death benefits in the event of a child’s passing. For adults, we know life insurance policies primarily protect the financial situation of the family in the event their breadwinner passes away. While children are not breadwinners, getting a policy for them will at least insure that their untimely death will not create funeral and medical expense burdens.
Hence, if you know that you, your partner, or your families has a history of illness, it’s possible those can be passed down to your children. In this case, taking out a policy can make sense for you.
However, if your family is clear of any medical illnesses and you’re not worried about your child, then don’t feel pressured to buy. Such an insurance policy may needlessly put a strain on your expenses. Life insurance is a very personal purchase and the reasons for buying or not buying are important to consider.
Alternate Investment Opportunities for Your Child
It’s true that life insurance offers a very low return rate and you have to make monthly payments for decades. In the end, you might not even need it and the entire investment may go to waste. Instead, you can use the same amount of money for other investments for your child. For example, you could dedicate the same amount of funds to a savings account specifically for your child’s education and college tuition. As time rolls by, this significant amount will prove to be extremely beneficial for your offspring.
Before purchasing any life insurance for your offspring you should take into account your family’s medical history, your financial situation, and your financial goals over the long term. Consulting with a financial advisor can provide you with some guidance on whether this policy is necessary or not for you.