life insurance for children

Life Insurance for Children

Most of the time, it's not suggested you purchase life insurance for kids unless you want to have a small policy for funeral expenses. Life insurance is, most importantly, monetary assurance after a loved one dies, usually a form of income replacement. It assists families with covering the bills and debt when a provider passes on. Since your child is not working and contributing to the household income, there is no income to replace, and therefore you don’t need to purchase life insurance for them. 

While the facts demonstrate that life insurance rates go up as an individual ages, the chances of your kid not being able to purchase affordable life insurance when the time comes is very slim and not something to worry about. If you like, you can purchase a small policy to cover funeral expenses should the unfathomable happen, and then they can take it over when they are an adult depending on the type of policy it is. 

In addition, most life insurance for kids, similar to the Gerber Life Insurance you've presumably observed promoted on TV, is whole life. On the off chance that you analyze term versus whole life insurance, whole life insurance rates are extremely higher, sometimes up to 15 times more than term life insurance. This means it is not very cost effective in the long run considering that most death benefit amounts for a child’s life insurance policy are smaller. 

If you decide that you still want to take the leap and purchase a life insurance policy for your child or children, there are some benefits you might be able to reap.

  • Investment – certain life insurance policies accumulate cash value and could be used for future items like a car or college

  • Funeral expenses – in the event that your child does pass, you will be able to have a funeral or memorial service without having to worry about the cost

  • Lock in cheap premiums for your child to take over

If you would like a quote for life insurance for children, the team at Rumbaugh Insurance can help. Contact us today.