When thinking about life insurance, you don’t usually think about children needing such a thing. You may be thinking, why get Life Insurance on children who are dependant on you? There are reasons why such a policy is a good idea, so let’s look into children’s Life Insurance and see if it suits your situation.

Life insurance policies for children are contracts with insurance companies, just like all other Life Insurance policies. Children’s policies, however, are focused on providing financial protection for the life of the child, as well as protection if the child pre-deceases you. This type of insurance guarantees life-long financial security to a dependant’s child. If your child has a dangerous hobby, such as scuba diving, motocross, or horseback riding, insurance is a good idea.

 Children’s Life Insurance can do the following:

• Cover child’s funeral expenses – although we don’t like to think about it, if something did happen to the child, you would be able to pay for end-of-life costs. Counseling would be paid for by the family, and family or guardians would be able to take time off work to recover.
• Acts as an investment and savings set for the future – children’s insurance can allow parents or other family members to leave the child a future financial tool. It can go towards future education, trips, or even a house.
• Premiums are locked in at affordable premiums – there is cash value to a child’s insurance policy. The bigger portion of paid premiums goes towards cash value, which takes time for cash to build.
• Protects insurability of child – the child is guaranteed coverage even if he or she develops health issues at some point. As well, your child will be able to purchase more coverage in later years without a medical exam.

There are two types of Children’s Life Insurance. One is to have the child Rider on your policy (called a Term rider.) The dependant is simply added to the parent’s policy. Term riders, although less expensive, usually provide less coverage. The other way is permanent or Whole Life insurance.  Whole life has lifelong coverage, is an independent policy with no expiry date. This policy is the child’s solely.

As you can see, getting life insurance for a child is a big and personal decision to be made after discussion and research to choose available options for your family. Ask a Harpreet Puri insurance broker to answer any questions you have.