Life Insurance For Children: Two Smart Options

Children Life Insurance

When it comes to covering children with life insurance there are two common methods.

 

1. A child term insurance rider.

 

This means you can add your children under your existing policy. This is called a rider. This type of policy can vary from carrier to carrier based on the coverage amount. Insurance carriers will also outline the maximum age that they will provide coverage.

 

One of the more appealing reasons for having a child term insurance rider is a lower than normal cost for the child. Some life insurance policies may even stipulate that the child rider will also cover future children that are not yet born. It is most definitely a cost effective way to cover yourself and children under your existing term life insurance policy.

 

IMPORTANT NOTE: Keep in mind; if you cancel a life insurance policy and have a child term rider on your policy, the coverage for your children will also be terminated.

 


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2. A whole life policy.

 

When your children are very young, the cost of insurance will be very affordable. A great benefit with whole life policies is the life insurance can stay with that child as long as they live, if they desire to keep the coverage.

 

When a child reaches the age of majority, which is usually age 18 in most states, they can legally take ownership of the life insurance policy and again continue that policy for as long as they wish. Another great feature with whole life insurance is that the price you pay stays that same price for the life of the policy.

 

A benefit that some don’t realize is a whole life insurance policy is the cash value that accumulates over time. This is money that you can borrow from for any reason in the future.

 

Planning for the future of our children is a very serious matter and these two options will help bring more financial security into the picture. If you should have any questions please feel free to contact us.


About the author: Dan Cody has been in the life insurance business for over 7 years. He loves playing a variety of instruments including the guitar, bass, drums, and piano. He also supports cancer research foundations and volunteers at local pet shelters. Dan enjoys helping customers understand life insurance, so they can find a solid policy that fits their needs. You can reach Dan at 1-800-651-1953 or DCody@Pivot.com.


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