Life Insurance for Children
Most of the articles I read about life insurance for children are generally negative. Rarely, it seems, does anyone believe buying life insurance on youth is a good idea.
Yet, I disagree.
I purchased Whole Life Insurance policies on both my children when they were elementary age. These were not huge polices – both are for $30,000.
Why?
1) Buying permanent life insurance locks in a premium at the age in which you are approved. And life insurance on kids is cheap. That means my kids’ policies have a low premium that will never see a premium increase on those policies. In our situation, I will likely continue paying those premiums until no further premiums are required. But at least those low, low child rates are guaranteed to remain level even as my kids get older and become adults.
2) Protecting their insurability. While it may be rare that a kid becomes uninsurable, it does happen. Personally, I’ve seen it happen to a couple of people I know. If my children had become diabetic or diagnosed with some other disease or condition the policy we applied for them would forever be protected. The insurance company cannot take away or cancel those policies for any reason, unless I quit paying the premiums.
3) The Unforseen Death. Of course, most deaths are unforseen. But in the event one or both of my kids passed away we had the life insurance to cover the expenses of funeral and the miscellaneous costs that go along with it. No one likes to think about losing their kids. But I’d rather be prepared financially than not. And remember, life insurance premiums on kids is cheap. So it’s not like I am spending huge sums for their life insurance.
My only regret with buying life insurance on our children? I wish I had bought more.
If you want to talk about your Arizona life insurance, please call me anytime!
Thanks,
Gary Brown, Agent/Owner
(480) 659-0229
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