Should I Buy Life Insurance for My Child?


Authored by Ceetee Sheckels in Insurance 
Published on 01-11-2010

If you have just had a new baby, you may already be receiving advertisements in the mail for life insurance. You may be uncertain about whether you should buy one of these policies for your child, as well as whether a life insurance policy for your child is necessary.

First, while it is something which no parent wants to think about, there is always the possibility that something could happen to your child. Even the youngest child is not immune to a life-threatening accident or illness. When you buy a life insurance policy for your child, it will provide financial assistance to you if your child dies. Fortunately, this is not the only reason to buy a life insurance policy for your child. The other reasons are not so difficult to think about.

One of the less stressful reasons to buy your child a policy is that the younger he is when you purchase it, the more it will benefit him in the long-run. Many companies which offer life insurance policies for children guarantee the same rate of coverage at the same initial cost. This means that when your child reaches the age specified by the company– usually age eighteen or twenty-one– he can take over the control of his policy himself without a raise in monthly premiums. Some companies offer the same degree of coverage without an increase in premiums for as long as the child wishes to keep the policy. This will benefit your child financially, as he will not need to purchase a higher-cost policy himself. It also includes the peace of mind of knowing that he will have the policy when he grows up, even if he develops illnesses during childhood which might make him ineligible for a new policy in later years.

Another good reason to buy life insurance for your child is the option which is known as a whole-life policy. A whole-life policy, which usually costs a little more than a term-life policy, can be a financial asset for both your child and for yourself. Many whole-life policies allow the policyholder to borrow specific amounts of money against the policy, after you have had it for a certain period of time. This means that the whole-life policy can be a source of emergency cash during the child’s growing-up years. It also means that he himself can cash in his policy if he needs to do so, for college or other similar needs.

Buying your child life insurance is a good idea. Even if you have trouble thinking about something happening to your child in his early years, these other reasons should encourage you to consider it. You can begin by deciding whether a whole-life policy or a term-life policy is best for your family’s particular situation. Whichever you choose, it is a positive step to take for both you and your child. It may be the most important investment that you can make for your peace of mind and for your child’s future.


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