Should you purchase life insurance for your children? Well, it’s a tricky question because typically life insurance is to protect investments and those making a salary. Your children are probably doing neither at this time. Whole life insurance protection can be a good option if you understand it.
People typically give their kids life insurance to lock in premiums, cover funeral expenses for the tragedy of an early death and allow for parents to build up a savings stockpile for college. Whole life insurance gives out a death benefit, or parents can add in a child rider.
Child Rider in the Sky
Child riders can be added to your own life insurance, and it provides another death benefit. Plus, for many people, the cash value can build up over time as long as you pay the premiums. The premiums don’t increase as the benefits do, so you’ll be paying the same price no matter what. Plus, the coverage can double the year that your child becomes an adult. In addition, when your child becomes an adult and starts his or her own journey on the life insurance track, they often get the option to continue paying the child premium with their adult life insurance. This ensures that your child will be able to afford and qualify for life insurance.
Protecting Against Problems
If your child wants to get adult life insurance, then they can turn in the child policy and get the insurance’s cash value. Plus, parents can borrow against it as long as they keep up the premium payments. Sometimes having that financial buffer will make all the difference with the unpredictability of life right around the corner.
Having a Whole Life Insurance For Child policy also protects them from potentially being disqualified from other problems later in life. Once they have some form of insurance, they have the ability to get insurance, no matter what happens to them as an adult.
Don’t Sacrifice You For Your Child
Now, while giving life insurance to your kids is okay and has a lot of great pros, be sure not to forget about yourself. You as an adult are far more likely to have problems that require you to use a life insurance plan, and you need to make sure that you are ready. Only once your life insurance is taken care off, should you consider buying some for your kids. Then everyone can reap the benefits together.