One last selling point many infant life insurance policies make is the fact the permanent whole life plan makes for a good investment.Īccording to the literature from Gerber Life and any number of other companies, the policy will build cash value, which can be borrowed against if needed. My friend now counsels everyone to get life insurance for their babies as early as possible-to make certain they will be able to have at least some basic life insurance through adulthood when they are producing income and/or have a family of their own. Because of the diagnosis, he may be considered ineligible for a child life insurance plan now and may be ineligible for life insurance in the future. Purchasing life insurance for your young child does ensure they will be able to get life insurance during their prime earning years, even if they have a health problem which would otherwise exclude him from life insurance.įor instance, a friend of mine has a son who was diagnosed with Autism when he was 15 months old. If you need to take time off in order to grieve and take care of your family responsibilities, an insurance benefit could help to keep your family finances afloat while you are not working. While you may not need to be concerned about losing your child’s income (because there isn’t any), your income will certainly still be necessary for your remaining family in the event of the death of a child. If concern over the possibility of funeral expenses is the only reason why you are considering life insurance for your children, you may find you can do better with your money elsewhere, like adding a rider to your own life insurance policy. Some funeral homes may offer services free of charge for families who cannot afford the burial costs of losing a child, but you shouldn’t count on it. Of course, this is part of the reason why life insurance premiums for children are so low. However, it’s important to note it’s relatively rare for children under age 18 to die. Life insurance can provide families with the peace of mind these final expenses would not eat into other aspects of their budget. The average funeral costs $9,420, which could be a serious financial strain on a family. Related Guide: How to Buy the Best Life Insurance in 7 Easy Steps Funeral Expenses However, there are certainly some additional factors to consider when thinking about purchasing life insurance for your children. I can’t help but think insuring my child’s life is somehow tempting fate.Īfter all, the primary purpose of adult life insurance is to replace lost income. I will admit I have a visceral and superstitious reaction to the idea of life insurance for children. Is Life Insurance for Children Even Necessary?
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