Learn about child life insurance to help you decide if you need this coverage for your family.
Reasons to get a child life policy.
Although life insurance is typically linked to primary earners, there are several compelling reasons to consider obtaining it for a child. However, since it is highly dependent on individual circumstances, seeking professional advice is advisable to determine the potential benefits of acquiring a child life policy.
What does a child life policy cover?
Child life insurance typically refers to a whole life policy that is initiated at a significantly earlier stage in a child's life compared to standard practices. The coverage may encompass expenses such as funeral costs, counseling services, and time off work in the unfortunate circumstance of a child's death. These expenses could otherwise pose substantial financial challenges for parents.
Is child life insurance an option for you?
The importance and relevance of these benefits will vary based on your financial situation, your additional savings and investments, as well as your risk tolerance.
Child life policies may be used as a form of savings.
Insurance coverage can serve as a means of savings, especially in relation to college expenses. This enables the accumulation of a cash reserve, which can be accessed (subject to a fee) or utilized as collateral for a loan. Typically, the growth of this cash reserve occurs at a guaranteed rate, although it is contingent upon the details of your policy.
Makes transitioning life insurance easier.
Initiating a child life insurance policy at this stage mitigates the likelihood of your child encountering difficulties in obtaining a life insurance policy as an adult, particularly if they have developed a medical condition during that time. Additionally, it may provide benefits such as discounts or the opportunity to secure coverage without undergoing a medical examination. If you wish to explore the details of a child life insurance policy, please reach out to us to discuss your requirements and available coverage options.