Raising a Family? Do You Have a Term Life Insurance Policy?
If you are raising a family and don’t have term life insurance, now is the time to purchase it. There’s probably a list of things you do on a daily basis to provide for your family. Don’t leave out the protection and peace of mind that a term life insurance policy will provide while you raise your family.
So how do you get started? Well the first thing is for the parents to make sure they have a term life insurance policy of their own. If you have coverage through your work that is great but don’t just rely on employer based coverage. Things can change with your job situation and you don’t want to leave yourself and family unprotected.
When you are applying for term life insurance policies most insurance carriers offer what they call a Child Term Insurance Rider. A rider is an extra feature that is added to the insurance policy to provide an additional benefit. Most riders will cover children up to age 25 as long as the policy is in force. If you were to cancel your policy for any reason the coverage on the children would be cancelled as well. Always check to see if a child term rider is available and the details of that coverage (to what age does it cover as well as how much coverage is offered).
When you are completing your application you will come across a page titled Child Term Insurance Rider, this is where you would provide information on your child; list any health concerns and who their primary doctor is. This is an easy way to cover multiple family members under one policy. Hopefully a child never pre-deceases a parent but in the event that did happen the child rider will provide the amount of coverage selected which would then go to the parents to help pay for services needed at the time of passing.
Another option to consider once you have your term life insurance policy in place is to check into quotes for your children on a whole life policy of their own. The reason I suggest this is that although the cost for the child rider is usually very cheap, it is also temporary. A whole life policy is a permanent type of life insurance that would stay with the child for as long as they live, if they wish to keep it that long. Once a child reaches the age of majority, which is usually age 18 in most states, they would take ownership of the policy and can surrender it back to the life insurance carrier or keep for as long as they want.
A couple of great features about whole life for children are that the monthly premium will be very low at young ages and whole life insurance builds cash value. This is money that grows over time within the policy and at any point when there is money in the cash value component a person could take a loan if needed. Another feature of the whole life insurance policy is that the final premium you are approved for stays that same price for as long as a person keeps the policy.
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.