In a post on March 4 of this year, Children’s life insurance. Keep it in perspective!” I broached the sensitive subject of life insurance for your children. Most parents would rather just turn their back on the whole subject. How morbid a thought? Quite honestly it seems that many parents think they may be tempting fate by purchasing life insurance for their child. Never mind that they have life insurance on themselves with no concerns that it will lead to their own demise.
My point in that post, and I believe one that is worth revisiting, is the idea that life insurance on your children is only slightly about them dying prematurely, and almost all about locking in their insurability for their adulthood.
Let’s put this in perspective. What if I told you that for $250.00 total, a one tme payment, you could ensure that your child could purchase 100,000 life insurance at fair rates when they turn 23, no matter what their health is. Let’s pretend for a moment that the guaranteed insurability is the only benefit. Do you think it might be worth considering? I recently wrote a $100,000 policy on a 21 year old in Idaho whose cancer, diagnosed at age 16, was in remission. He wasn’t uninsurable, but the rates were astronomical for a 21 year old. If he would have had a guaranteed insurability rider from a children’s policy, his need for insurance at age 21 would have cost 1/3 of what he now pays.
So, take it out of the morbid context of the thought of your child dying. Bottom line is that you can, for very little money, purchase them a valuable asset for their future. Read the March 4 post for more detail.
This post is somewhat dated. Life insurance underwriting is changing and evolving continually. For more updated information check out some of the key word links. If you have a specific question or topic you need information for do a search. If you don’t find the answers you need contact me and we’ll make sure you get the information that is important to you.