Children’s Life Insurance Policies
The importance of a children’s life insurance policy is a widely-argued debate. If you examine the following information and feel that you are in a position that would benefit from life insurance on your child, then this would be the best decision for you. Some people are not in a situation that would be helped by their child having life insurance. The conclusion to this debate will vary from person to person, and you will only be able to get to the appropriate answer for your situation by thinking about the main points of such coverage.
The Emotional Consideration
Many people argue that children do not need life insurance. Being as the mortality rate for children is much lower than that of adults, some people feel that such coverage is an unnecessary economic drain on a family. On top of that, life insurance is issued to individuals who have something to lose in the event of the untimely death of the insured. While children are beloved and indispensable on an emotional and mental level, they very rarely offer their family financial or monetary stability. As such, it is unlikely that, from a financial standpoint, individuals would have something to lose from the death of a child.
Financial Considerations Regarding a Children’s Life Insurance Policies
On the other side of the argument, some people feel that having a life insurance policy on a child is a good thing to put in place since it is never too soon to get life insurance coverage. Everyone dies, and a serious illness or injury could make buying life insurance in the future very expensive, even unavailable. From a financial standpoint, as a person gets older, their life insurance premiums almost always increase over time. Cost increases because individuals often open themselves up to more to either short-term or long-term life-threatening practices, such as smoking, drinking, driving vehicles, including motorcycles and the like.
Children are still innocent and limited in their exposure. Children can get some of the lowest insurance premiums offered by life insurance companies. Also, many life insurance companies that provide coverage for children will keep the premiums the same, no matter how old the child eventually gets. There is an advantage for individuals who have their insurance premiums set when they are three years old as opposed to fifty years old. The least expensive way to add life insurance protection to a child is to add a child term rider to a parent’s life insurance policy. One price will cover all the children in the family.
Determining what is best for your family
For the most part, a family’s financial situation will help them to determine which decision might be best for them. If a family has the extra money needed to pay for such a policy, it might be good for the child when it comes to the long-term experiences of their life. Specifically, it would be great for the child when it gets to the point that they would eventually need to file for life insurance coverage. However, if a family does not have the money required for such a venture, this is not necessarily a bad thing.
Most families do not need the policy coverage that the child’s policy would offer. The benefits are often established and developed later when the child needs to take over such payments, and they find out they will be paying a lot less compared to other people their age who are just now taking out life insurance policies. If disabling medical issues are present in a family’s history, taking out a life insurance policy might be a good idea.