As a parent, you do everything possible to care for your kids. Life insurance can be one product that provides for their future. Consider several reasons why you should buy life insurance for your children.
Ensure Future Insurability
Many life insurance policies require applicants to take a medical exam. Medical conditions can prevent you from buying a life insurance policy, or they can cause your premiums to rise.
By purchasing life insurance for your kids when they are young and healthy, you give them valuable coverage they may not be eligible for later in life. Even if they develop a medical condition that reduces their eligibility for life insurance when they are older, they will already have a policy in place.
Build a Financial Portfolio
You have a financial portfolio that may include insurance, investments and savings. Help your kids develop a strong financial portfolio, too, with life insurance.
Whole life insurance builds cash value at a predicable rate. When your kids are older, they can access the money to buy a home or fund their retirement. It’s an investment tool that greatly benefits your children in the future and is a valuable part of their financial portfolio.
Save for College
The average public college costs $15,640 per year, and private nonprofit colleges cost $40,614 annually. Life insurance can help your child afford their college education.
A whole life policy grows in cash value. If you purchase a policy when your child is young, it will grow at a predictable rate. Your college-age child can then borrow from the policy’s cash value and use the money for tuition, room or board as they earn a college degree.
Cover Funeral Expenses
No parent wants to plan for a child’s death. However, consider the possibility and how it would affect you. You may not have adequate financial resources to cover a funeral, and you don’t want to worry about raising funds when you are grieving.
Life insurance pays for funeral expenses. It relieves that financial burden, gives you peace of mind and is available whether your child dies young or lives a long life.
Life insurance is a valuable asset for you, and it’s also important for your kids. Be sure you have a life insurance policy and then buy life insurance for your kids, too. Your insurance agent can discuss the various options and provide additional details that help you choose the best coverage for your kids.