Should You Buy Life Insurance for Your Children?
Only 15 percent of people under the age of 18 have life insurance, according to recent research from the American Council of Life Insurers. On average, children are covered for only about $5,000 total, which is usually only enough to cover burial expenses. Sometimes this coverage is tacked on for a small fee to a parent’s life insurance policy. Child life insurance policies can be useful tools to help in emergency situations, such as falling on hard times and having a whole life policy to cash out. These policies can also come in handy if you have a long history of health problems in your family, like diabetes, cancer, or heart disease. Sometimes buying policies while children are young can ensure they have coverage when they’re older and policies are more costly and harder to find.
Children Need Life Insurance
Many people don’t realize that there are certain benefits to buying kids life insurance. One reason to buy life insurance for a young family member is for financial planning purposes, especially when you’re starting financial planning for a baby, for example.
One of the major benefits of life insurance for kids is that a policy will protect them if they develop health problems later in life. In a manner of speaking, you will be insuring their ”insurability” for their future life insurance needs.
Another reason to buy life insurance for your children is to create a financial legacy for them beginning in infancy and going forward to their adulthood.
If you have a child with special needs, a children’s life insurance policy can alleviate any future financial hardships such as ongoing care and medical expenses, when you can no longer provide.