Why Get Life Insurance

Why Buy Life Insurance for a Child?

People often ask us whether they should get life insurance for their child. Here are five reasons we think it's a good idea.

5 Reasons Why You Should Consider Buying Child Life Insurance

Some may frown on insurance for minors because of life insurance's primary purpose replacing the income of a working adult. However, there are many other reasons why buying a life insurance policy for your child could be a good idea for you. Here are five:

Reason #1: The time and resources to grieve.

There is likely nothing more devastating than the loss of a child. In such an unfortunate and untimely event, day-to-day responsibilities might be overwhelming - the demands of your job, paying the bills, and having to care for other children in the household. The reality is you might not have enough paid sick or vacation time from work to take care of yourself, your spouse or your other children during this difficult time. If the unthinkable were to happen, would you have done enough financial planning to have the resources to go back to work on your terms?

Reason #2: Cash Value and living benefits.

The cash value earned from a permanent* life policy (such as whole life, universal and variable life) can be withdrawn or borrowed against, providing living benefits that can used by your child as he or she gets older for many things such as:

Reason #3: They'll always be insured.

There are a number of factors that can affect your child's future insurability. High blood pressure, diabetes, obesity and cancer are just a few of the many health complications that might prevent your child from being insured down the road. One of the primary benefits of purchasing a life insurance policy when they are young is that they will always be covered regardless of their future health as long as premiums are being paid.

Reason #4: Guaranteed insurability.

Some life insurance policies for children come with an optional guaranteed insurability rider/endorsement that may available for a nominal cost. As your child grows into an adult, this rider allows you to buy additional life insurance above the face value of the current policy (on specific dates and in certain increments) regardless of his/her health status at the time. Usually, the older the child gets, the fewer dates the policy owner has to purchase more life insurance and in some instances, after a certain age, the rider may not be exercised.

Reason #5: A locked-in rate.

Life insurance premiums for minors can be very affordable. Buying life insurance for your child now could give you an opportunity to lock in that rate for the life of the policy. As long as the required premium is paid, the policy will stay in force.

Policies vary greatly from company to company. A life insurance professional can help you select the right policy type and optional policy riders so your child will get the most out of their policy - even when he or she is grown with a family of their own.

* As long as required premium payments are timely made. 

Loans against the policy accrue interest and decrease the death benefit and cash value by the amount of the outstanding loan and interest.

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All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

Learning Center articles may describe services and financial products not offered by Protective Life or its subsidiaries. Descriptions of financial products contained in Learning Center articles are not intended to represent those offered by Protective Life or its subsidiaries.

Neither Protective Life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax‐related decisions. For information about Protective Life and its products and services, visit www.protective.com.

Companies and organizations linked from Learning Center articles have no affiliation with Protective Life or its subsidiaries.

Buying Child Life Insurance Policy

Considering buying a child life insurance policy? It is often a difficult process to consider situations that may benefit from having a child life insurance policy in place, and this article explains a few of those benefits to consider. From the unthinkable to the very practical, this article explores five reasons why child life insurance may be a good fit for your family. For more information, visit our learning center.

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