Why parents should consider life insurance for their children.
Becoming a new parent is one of the most exciting and stressful times of your life. However, even with all the planning that you’ve done and all the advice that’s been given, there’s one important thing that you probably haven’t heard about—life insurance for your child. But do children really need a life insurance policy? Here are some of the things to consider.
Preparing for Life’s Unexpected Twists and Turns
While the idea of buying life insurance for a newborn seems morbid, the main point of securing this coverage is so your children have something to care for their loved ones once they grow up and start families of their own. Buying a life insurance policy for your child now ensures that they have some kind of financial protection for their future loved ones. While you may be wondering why you should bother getting a policy now when your child can just get one for themselves in the future, there are some advantages to securing coverage early. Consider the following:
- Low Cost– The cost of life insurance increases as the policyholder gets older. By securing a life insurance policy on behalf of your child, you can lock in incredibly low rates (as low as $10 a month). Experts recommend getting your child a policy during their first year of life to secure the cheapest rates possible.
- Transferability– Many parents worry about their children having to pay for their life insurance as soon as they become independent. However, this isn’t usually the case. Depending on the policy that you choose, you can pay your child’s life insurance premiums on their behalf and then gift the policy to them once they are older and have a family of their own. In fact, you can actually gift your child’s life insurance to your future grandchildren, ensuring that they have financial stability in the future.
- Ease of Access– It’s also a good idea to secure life insurance for your child when they are born because you cannot predict what kind of health issues they may develop down the line. While you may hate to think about it, good health is not a guarantee, and it is possible that your child may have a shorter lifespan. If your child is diagnosed with a serious illness or health condition, then you will probably not be able to secure life insurance on their behalf. This will leave you personally responsible for their medical bills and final expenses should they pass away. The last thing that you want to worry about is money when you are mourning the death of your child. Securing a life insurance policy for your child when they are young could potentially save you from having a devastating situation become even worse.
This is why parents should seriously consider investing in life insurance for their newborns. Do you have other questions about life insurance? If so, then contact the experts at Randy Jones Insurance Services in Pleasanton, California. We are ready to assist you with all your coverage needs today.