We typically do not consider life insurance for our children – we don’t want to even think about them passing away and some of us believe that they should not need it being young. Life Insurance is actually very important no matter how young your child is.
Why, you ask? There are many reasons but here are just a few to consider:
Your child is probably the most insurable now than he or she ever will be. Children are typically healthy. The older we become, the more health issues arise. If you lock in a life insurance policy for a child now – it will remain in force no matter how their health status changes in life. Your child will appreciate this later in life, especially if they are dealing with those health concerns.
The younger you are, the lower your insurance rate will be.
A family history of cancer or other diseases will affect an adult’s life insurance rate, but guess what? They do not factor this into a child’s insurability.
This is the hardest one for as a parent. A modest funeral in San Diego runs $7,000-$10,000. This is most likely something we can all come up with if the need arose, however, have you considered how much time you would be out of work or the cost of counseling each family member would need after something this terrible happened?
To give you an idea on how affordable the cost is for a child whole life policy, my 6 month old son has a $50,000 whole life policy in place. We pay about $32 per month for this policy. When he turns 18, this policy automatically doubles for him to $100,000 yet he will still only be paying $32 per month. He also has 4 other opportunities in life to purchase additional life insurance, no matter what his health situation is. The locked in rates and the future insurability for me are reason enough to purchase this policy for him.
My advice to you is to consider life insurance for your children, this is obviously a person decision, but a decision that you should think about. If you have any questions, feel free to email or call us directly.