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    Insurance | 2 min read

    4 Reasons to Consider a Life Insurance Policy for Your Child

    As a parent, you always want the best for your child. Safety and financial security is a number one priority and up until now, you think you've managed to do exactly what you should do to guarantee that. You have a strong life insurance policy for your family that covers the expenses that will ensure your child's financial well-being in the event of your death. But is that enough?

    It's tough to imagine, but sometimes a child's illness or an accident will upset the natural order of things, which can result in your child dying before you. You have the power to lift the financial burden associated with this by getting a separate policy for your child. 

    A life insurance policy for a child may be something you have never considered since you don't need to replace any household income if your child dies, but there will be burial expenses and possibly medical bills to pay, so a policy would relieve some of the stress associated with these costs. 

    Here are some additional reasons to consider getting life insurance for your child:

    1. Your child is guaranteed to always be insured, regardless of health

    Getting a life insurance policy for your child can protect them from being denied life insurance should they develop any health issues in the future. Medical problems like diabetes, high blood pressure, obesity, and cancer can prevent your child from getting a policy when they get older and apply for themselves. If you get a life insurance policy when your child is young and they do not developed any of these conditions, they may keep the coverage, regardless of any health issues they may face when they get older.

    2. You're financially covered in the event of your child's death 

    Tragedy could strike and your child could lose his/her life before you. Although, it's less likely for a child to die before their parent, it can happen. A life insurance policy for your child could cover any unpaid medical expenses, and the funeral or memorial expenses, which often runs into the thousands. If you get a policy valued between $10,000 and $15,000, the funeral costs will most likely be fully covered.

    3. You can get an affordable policy

    Typical life insurance policies for children don't need to be more than $10,000–$20,000 since you won't need to replace household income. What makes these policies so affordable is that the monthly premiums range from $5 to $15, depending upon the type of policy.

    4. A whole life insurance policy can generate cash value

    A whole life policy has a cash value element, which means that as the child gets older the policy generates cash value. So, when your child reaches adulthood, there will be a surplus of cash that can be use for college, a car, or for other expenses. Just check to make sure that there aren't penalties applied by the insurance company for accessing the cash.

    Life insurance for your child is not a requirement, but it sure helps to combat many situations that can threaten your financial stability. You won't be able to avoid the unforeseen tragedies that could potentially affect your family's lives, but you can prepare your family for the financial burden of a child's death or the future obstacles they may face when buying a life insurance policy. Getting a life insurance policy now can guarantee your child a lifetime of protection.

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    Joan Cleveland

    Joan Cleveland, CLU, ChFC, REBC leads SWBC Life Insurance Company as President and CEO. With more than 30 years of experience in the life insurance industry. She holds her Agent licenses for Life, Accident, Health Insurance, and has multiple FINRA securities Licenses. Joan is a frequent industry speaker and media spokesperson. She is a member of the Board of Directors of the American Bankers Insurance Association, and co-chair for their Government Relations Committee. In addition she is chair of LIMRA’s Strategic Marketing Issues Committee.

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