Talking about life insurance often demands us to confront some painful topics like terminal illness and death. I've watched a close friend confront an aggressive cancer diagnosis for her son.
Talking about life insurance often demands us to confront some painful topics like terminal illness and death. I've watched a close friend confront an aggressive cancer diagnosis for her son.As both an insurance agent and a parent, I want to share my advice on how families can best be prepared to take on these challenges together. Life insurance can offer much-needed financial support when your family needs it most. But more importantly, it offers families the gift of time.
When challenges like this arise, all you want is more time to spend with your loved ones. Life insurance offers people that opportunity. In this blog, I've highlighted five reasons for families to consider a children's life insurance policy.
1. Some policies offer a financial safety net during life's toughest moments.
As independent insurance agents, we have access to life insurance policies from top-notch carriers. Plus, we have the knowledge necessary to guide your decision-making process, so you can feel confident making informed choices about your financial future.
We strive to work with carriers who offer products that match the needs of real families. One carrier, Erie Insurance, gives customers the option to purchase additional coverage to protect their loved ones in the event of a terminal illness. This Accelerated Death Benefit rider allows families to access part of the policy's value right away in the event of a terminal diagnosis.
Life insurance provides a financial safety net to support your family during a time when it often feels like the bills won't stop. If the unthinkable were to happen to your children, life insurance can help you address the significant costs associated with healthcare or funeral services.
2. Getting life insurance now can guarantee coverage for your children in the future.
Purchasing life insurance for a child can also have added benefits to their long-term financial independence. Erie Insurance also offers policies with a guaranteed insurance feature.
With guaranteed insurability, your child has the option to purchase additional life insurance without having to undergo a medical exam. This offers financial protection to your child for the long term, ensuring they can obtain their own life insurance policy later in life - even if they would typically be considered uninsurable.
3. Investing early can lock in affordable life insurance rates.
Getting life insurance when your child is young and healthy is a financially savvy move that can save lots of money in the long term. Premiums are typically lower for people who are young and healthy. Purchasing a life insurance policy now can ensure your children have affordable life insurance for the future.
4. Life insurance can help build your children's savings.
Many child life insurance policies are whole-life or permanent policies, meaning they have a cash value component that grows over time.
In other words, depending on the type of children's life insurance policy you choose, it can act similar to a savings account. Children can access this cash value later in life for education, purchasing a home, or even supplementing retirement income.
It's important to note that the primary purpose of life insurance for a child is not typically financial gain, but rather to provide peace of mind and financial support in difficult circumstances.
5. Life insurance protects parents who cosign for student loans.
For parents of children heading off to college, life insurance could be a smart investment. It provides peace of mind knowing that if the worst were to happen, your family would have financial support to cover not only immediate expenses like funeral costs but also outstanding student loans or other debts. It's a proactive step that ensures your family remains financially stable while your child pursues their education.
Have a new college student in your family? Ensure they're covered while they build their independence: Everything High School Grads Need to Know About Insurance.
Ask your insurance agent about life insurance for children
When a close friend was faced with a potentially life-threatening diagnosis for her little one, I realized I needed to review my family's insurance policies.
What was I looking for? I wanted to ensure my family each had the Accelerated Death Benefit Rider and the Guaranteed Insurability Rider for the future. Adding this extra layer of protection now ensures that our family can be there for one another if challenges arise.
Parents should carefully review their insurance coverage and financial needs with help from an independent insurance agent. Our agents can help match your family with a life insurance policy. Start your quote for life insurance now.