Life insurance for children is a controversial issue. On one hand, most children are born healthy and will live long, productive lives. Since they don’t work and contribute income to your family, one of the primary reasons we buy life insurance - to protect a family from the financial aftermath of death - doesn’t apply. However, here are two reasons why it’s at least worth having a conversation about insuring your children.
Insurance can help your family deal with the aftermath of a child’s death
No one wants to think about the death of a child; it’s a tragic event that no one should ever have to face. However, if the unthinkable occurs, a life insurance policy can give you a financial cushion and help your family cope with:
- Medical and funeral expenses that can cost thousands of dollars.
- Time off work for bereavement and family care when paid leave expires, or isn’t available.
- Counseling for the members of your family as they work through the emotional turmoil of a death.
- Charitable gifts to memorialize a child and help him or her leave a legacy to others.
If you have substantial savings and don’t expect to need extra financial help, then juvenile life insurance may not be a good bet for your family.
Insurance can help protect your child’s future insurability
Another reason to purchase life insurance for a child is to help him or her hedge against future insurability issues. If your child develops a medical condition or participates in certain high-risk activities later in life, he or she may be unable to find an insurer willing to underwrite a life insurance policy. By purchasing a policy now, you can help ensure that your child has future coverage at a better rate. Once a life insurance policy is in force, adverse medical conditions, family medical histories, and lifestyle factors like adventure sports won’t affect premiums or death benefits.
There are many factors to consider when thinking about life insurance for a child. Since life insurance is a complex topic with many emotional and financial considerations, we recommend that you discuss your personal situation with an insurance expert who can help you understand your options and make a choice that’s right for your needs. For more information about life insurance for any member of your family, please contact our office at (518) 581-1642 for a complimentary consultation.