Do You Need Life Insurance for Your Kids?
Life Insurance Coverage for Children
Having sufficient life insurance coverage can be a crucial part of being a family. This is especially true when you have kids. While you may have a life insurance policy in place, what about your child? Should you select a separate life policy for your kid? Before you make a choice, it’s important to know the basics.
How Children’s Life Insurance Policies Work
Life insurance works almost the same way for kids as it does for adults. You can select a term policy which remains in effect for a number of years or a whole life policy which offers permanent coverage. With the latter coverage, you get the added benefit of being able to build cash value in the policy. When your child becomes an adult, he or she can borrow against any cash that accumulates.
Keep in mind that if you choose a term policy, it has to be renewed once it expires. If the child is old enough, he or she can assume the policy and alter coverage. Whole life insurance coverage stays in effect as long as premiums are paid.
Who Needs Children’s Life Insurance?
As a parent, you want to provide for your child in every way possible. A life insurance policy can help. Typically, you’re never as healthy as when you’re young. Buying life insurance now, while your child is healthy, means that he or she will already have insurance and prices won’t go up based on health.
Buying life insurance for a child is about more than insuring your child’s life right now. If he or she develops an illness, such as diabetes or cancer, acquiring life insurance can be incredibly difficult and expensive. With a policy already in place, you know your child has ample protection. Choosing a policy with an accelerated death benefit rider would allow you to draw against its value to cover expenses if your child has a fatal illness.
Life insurance for children can be a wise and practical decision. Falsken & Associates Insurance Agency can help you figure out how much life insurance you need for your child and which insurance type to buy. We serve Thousand Oaks, Westlake Village, and surrounding cities in California – Give us a call to get started.