New Parent? Think About Buying Life Insurance for Them Now

Life Insurance

When you are purchasing a life insurance policy, have you ever considered getting coverage for your children? Having a child is one of life’s most pivotal moments, making it a great time to consider a life insurance policy for your child. Wouldn’t it be great for your child to realize as they get older, that they have a life insurance policy of their own?

The type of coverage that a child may qualify for is called whole life insurance. This is a permanent form of life insurance that can stay with the child for their entire life. The policy will also build cash value over time. Cash value is money a you can take a loan from if it’s ever needed for any reason.

One of the reasons people end up buying life insurance for children is because rates are typically very inexpensive, especially for young children. I have heard from clients another reason for the purchase is that they want to give their child a head start with life insurance. When a child reaches the age of 18, they can legally take ownership of the policy. They can continue to keep the policy and, if necessary, take a loan from the amount of cash value that has accumulated. They could also decide to surrender the policy back to the life insurance company who issued the policy. They would not receive every dollar they paid into the policy but they will receive some of the cash value, as outlined in the policy minus any deductions from loans not paid back.

I think one of the great benefits of purchasing a life insurance policy for a child is that it will help them to understand the value and benefits of life insurance when they take ownership of the policy. I speak with clients everyday who wished they had applied for life insurance when they were much younger. I’ve also encountered clients who have had life insurance policies for decades that their parents purchased for them. Most of these clients have a feeling of gratitude about these policies. They have an emotional connection to them because many of them are now parents themselves. They now realize what a great gift their parents gave them long ago. For some clients, depending on the amount of coverage that was purchased, the cash value can really become a large sum of money over time. Obviously in the event of a worst case scenario, if a child passed away, you know that the life insurance protection is there.

Based on my experience, you can see why purchasing life insurance on your child is a wise investment. 

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