Most of parents will think they don’t need life insurance for their children as the funeral fee is not very expensive. They would rather to set aside an amount of money for their children in future need. The thought of getting your children life insurance is kind of horrible and sensitive to most of parents. However, the reason for buying life insurance for children is much more than just a funeral expense. Check out these benefits below to see how a whole life insurance for children can give you an ease of mind
- I want to support my children financially in future.
There are so many kind of investments you can go for but one of the most safe secured investment is whole life insurance with growing cash value. When buying a whole life insurance for children, no parents want to expect their children will have pre-mature death. Indeed, they are expecting their children can either withdraw cash value from the policy for their education or keep the policy and turn it into permanent coverage into their entire life.
For an example of a child, male, age 0 and is based on the 2018/2019 dividend scale. Monthly premium payment is $200. Parents pay each year for years 1 to 20 and create a stable investment with tax-advantaged growth. After that, their children can withdraw up to $4,800 each year for years 27 to 100.
- Your children will always be insured
Regardless of their future health, they will always have the coverage. There are number of factors that can affect your children’s future insurability such as diabetes, obesity, high blood pressure or cancer. If you have a policy for your children now, they will be insured until age 70, regardless of their medical conditions.
Buying life insurance for your children to help them secure the premium rates in their entire life. No matter how long they will have the policy, the premium rates will never change. This will fit your family’s budget now and their budget in the future as well.