Three Reasons to Have Life Insurance on Your Children

30717926215_754aaee5b0Nobody likes to think about insuring kids, but you know what? There are really good reasons to do so. Here are three:

Huge cost savings

We all know that the price of a new policy goes up with age. If a 20-year old and a 40-year old were each to buy a new policy, the 40-year old would of course pay more. (For sure, once their policy was purchased, the premium would remain guaranteed for whatever period they chose.)

You can see how low the premium would be on a one-year-old, or a five-year-old! Can you imagine how much money could have been saved if $1 million had been placed on your life when you were five years old, instead of having to buy it when you were 25 or 35? Even if you factor in paying the premiums all throughout your childhood, odds are great that your total net outlay would still be lower than if you buy a policy at a higher rate as an adult.

Significant cash accumulation

Some life insurance policies are designed to accumulate a lot of cash. They need time to do this. (And you need to leave the cash alone – no picking at it for odd cash needs.) Once you factor in the favorable tax treatment, over the span of decades a huge amount of cash can grow.

Policies on children are ideal for this scenario. The whole strategy calls for keeping the policy in force, and leaving it alone, for a period well into adulthood. With the right product from the right company, enough cash can grow to make good things happen: buy a house, start a business, supplement retirement.

Insuring insurability

God willing, every one of our children grows up healthy and strong, and lives a good long life. But things happen. Some families predispose their kids to certain genetic conditions, such as diabetes or breast cancer. Sometimes children get sick as adults, such as with adult onset diabetes, and any number of other ailments. Sometimes they adopt higher-risk lifestyles: maybe they take on scuba diving or rock climbing as a hobby, or get a corporate job that requires travel to remote places across the globe.

In all these situations, the cost of insuring them could be higher than usual. It might even be so high that they would have to settle for insufficient coverage purely for budgetary reasons. Or they may not even qualify at all, unfortunately. But had their parents the foresight to put a life insurance policy on them when they were young, then they would enter adulthood already with coverage in force. They’d be way ahead of the game.

Please feel free to comment, or to contact me directly with a specific question. If you need a quote now, or a second opinion on a quote you have received, the best thing to do is to call me toll-free at (866) 633-1818. Or email me at skobrin@stevenkobrin.com. I also encourage you to download my free Life Insurance Guide – see the above tab. Many people have found it to be extremely educational.

 

Want to learn more?
Read my free guide, How To Get Great Life Insurance Rates and learn how you can get life insurance companies to compete for your business, at no risk or extra cost.