Child Life Insurance

We know that many of you worry about your family’s safety and health. For that, there are numerous insurance plans to cater to your needs. One such program is a Child Insurance Program. 

All of us have lots of concerns about the health and safety of our children. We try to keep our money safe or invest it somewhere for them. One day the money that we have invested would be their saviour. 

Children deserve to live a life free of problems and health concerns. For that, insurance plans come forward. But a child’s life insurance makes us a bit reluctant as we all want our children to live longer and be healthy. So why buy life insurance for them?

What is Child Life Insurance? 

Child Insurance is similar to adult life insurance. The child gets insured, and the policyholder has to pay a premium. The family gets the money when the child dies.

In this type of insurance, the policyholder is not the child himself. It is always a parent or a guardian. In an adult insurance plan, the insured person is also the policyholder. 

If you have chosen a beneficiary for the insurance, he can also be the child’s life insurance policyholder. The beneficiary is the one who revives the money when the child dies.

Child Insurance also lets you build cash value like an investment option. A part of your premium will go into an action that keeps growing. Your child can use that cash value later in life in times of need.

What is the Right Age to Get Child Life Insurance? 

So, if you have decided to opt for Life insurance for your child, you’ll be confused about the right age. Typically, the younger your child is, the cheaper the insurance is. You can buy the insurance whenever you want before your child turns 17. 

Is Child’s Life Insurance for a Whole Life?

When you get life insurance for your child, you’re actually doing him a favor. This insurance is for your child’s whole life. It does not come as Term Life Insurance, which can end at a given period. Your hild will have life insurance till he dies. 

The insured child can claim the insurance once he turns 21 years old. 

Should You Buy Life Insurance? 

Many of us have this question: Why do we ensure our children’s life insurance? We are not financially dependent on our children. So what benefit would they or we get from this insurance? 

With the pandemic hitting the world, everything has changed drastically. We have witnessed a lot of people losing lives at the hands of this merciless virus. So the mindset of parents has changed too. They are getting more aware of the benefits of the child’s policy.

If your child is not ensured, later, he will need insurance of his own. Chances are he could be rejected the insurance policy for any health or other financial reasons. So if you ensure your child now, he will have his insurance till his last breath.

When taking up insurance, you need to think about why it matters to you? When the child dies

What are the Pros and Cons of a Child’s Life Insurance?

We understand that you’re skeptical about getting life insurance for your child. You would have a lot of questions in your mind. Some would say that you should get it, and others would negate the idea of getting your child insured.

What should you do?

We have listed down some pros and cons to taking you out of your dilemma. So that it’s easier for you to take the decision whether to buy the insurance or not.

Pros

You’ll have insurability: By opting for child insurance, you’ll be satisfied that your child will stay insured no matter what. He won’t be denied his right to insurance even if he has any health issues. His insurance will be for his whole life. If your child takes up any dangerous hobby, he won’t have to worry about getting life insurance. Most insurance companies do not agree to grant insurance to people with life-threatening hobbies.

The younger the child, The cheaper the rates: The child insurance will help you save some bucks. With every year, the rates increase. The sooner you take up insurance, the easier it’ll be for you to buy.

Funeral Expenses: We know that you won’t ever think about your child’s death or his funeral expenses. But if that happens in any way, your child’s insurance will cover his funeral expenses too.

You’ll have a Cash Value: Child life insurance allows you to build cash value. Your child can use it, but it can generate a tax bill or reduce the death benefit amount. 

Cons

The cash value is a slow process: The child insurance’s cash value is built up very slowly. If you take up the insurance when your child borns, it’ll take at least 15 years to build up the cash value equivalent to the premium you’re paying. 

The commitment is very long: You offer a monthly premium on every insurance plan. But with child life insurance, you’ll have to pay for it your whole life. If you’re in a financial crisis and won’t pay, you might lose the insurance plan. The second option could be paying by using the cash value, but your child will have a very small amount from the cash value.

The Bottom Line: 

Child Insurance does not only help your child to stay insured for the rest of his life. It also allows your child to have a certain amount of cash in distressing times. But it certainly does have a few cons. Now it’s based on your judgment whether you opt for child life or not.