Why Life Insurance On Children?

MB child-plan


The overwhelming reason for having life insurance on children is to protect their insurability in the future as there are many medical conditions that can develop during the childhood that could result in being uninsurable as an adult.

Life Insurance is an extremely important and sound part of financial planning.  Protecting loved ones from loss of the breadwinner and the homemaker running the home and caring for children.  Both should have protection in order to maintain the standard of living they are accustomed to and to avoid additional stress from the added disruption a death of a family member brings into their lives.

One client told the story of his parents purchasing life insurance on him as a child, shortly thereafter he developed a medical condition that rendered him uninsurable.  As an adult, married with children that policy his Father purchased on him as a child was all they had and in his own words he was very grateful to have that policy as it was the only protection he had for his family.

After being free from any recurrence of his medical condition for a period of ten years (normal time span for most insurance companies regarding serious medical conditions) he was able to purchase more coverage but to this day still has the original policy his parents purchased on him as a child.

There is another reason to have life insurance on children, a reason we dare not consider but happens every day; the death of a child!   This will create unfathomable and long lasting grief for the parents.  One of my clients who is self-employed was telling me about her nephew’s suicide and remarked to me, “If anything ever happened to one of my sons there’s no way I’d be able to work!”

There is no amount of money that could possibly ease the painful grief from the loss of a child but it would afford the ability to stop working for a while giving an opportunity for extended grieving time.

For those of you with children this is something for you to consider for both reasons and the cost is extremely reasonable.

FAQ Bank On Yourself For Kids

Q. Do children have to have a physical exam in order to purchase life insurance?

A. No, the application has medical questions and the insurance company may request copies of the child’s medical records from the child’s physician.

Q. What kind of life insurance policy is it?

A. Whole life insurance with guaranteed fixed level premiums and does not increase as the child gets older.

Q. What about cash value?

A. The whole life policy has guaranteed tax-deferred cash value accumulation.

Q. How much would the premiums be?

A. That would depend on the age and gender of the child.

Do you want to know more, contact Marilyn Blosser today!


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