7Newswire
21 Apr 2023, 23:48 GMT+10
According to LIMRA's 2022 Life Insurance Barometer, 68% of life insurance policyholders felt they'd be financially secure if the primary wage earner passed away. However, life insurance isn't just for insuring yourself. If you're a parent, you may be able to take out a policy on your child. If they pass away, this will help you take time off to grieve without sacrificing your financial well-being. This article will dive into a few reasons why buying life insurance for your children can make sense and cover a few policies to consider:
Here are several reasons why it may make sense for you to get life insurance quotes for your children:
The younger a policyholder is when they get a policy, the lower their rates will be. So, getting a life insurance policy for your child can help them lock in the lowest possible rates to save money on coverage. This can be especially helpful for permanent life insurance, which costs more than term life insurance but lasts for life. Your child can receive lifelong coverage at a low rate.
Losing a child can be devastating emotionally and financially. Insuring your child with a life insurance policy helps protect yourself and your loved ones if that child passes away. You will have the financial resources for the funeral costs and to take time off so that you can grieve and recover.
Permanent life insurance for your child can help them build wealth early through the cash value growth component. Part of each premium goes into the cash value. It grows tax-deferred at a specific rate, depending on the policy type.
Once that cash value grows enough and your child becomes an adult, they can withdraw or borrow from it at favorable rates. If they ever surrender their policy, they'll receive the full cash value minus surrender charges.
Here are some life insurance options to consider purchasing if you want to insure your children:
Term life insurance can offer less expensive premiums than permanent life insurance for the same level of coverage. However, it can expire in 10 to 30 years, depending on the policy term you choose. So, these affordable life insurance policies can work well if you want to minimize costs and don't have complex financial plans.
Whole life insurance costs more than term life insurance but lasts for life. It also comes with cash value that grows at a fixed, guaranteed interest rate. As a result, whole life insurance can be a good choice if you want to help your child build wealth and help them save on lifelong coverage.
A child life insurance rider is a type of add-on coverage you can purchase for your own life insurance policy. It pays out a death benefit if your child passes away during the policy term to help you cover funeral expenses and take time off from work to grieve. In this case, you are still the insured on the policy, not your child. If you pass away during the policy's term, your loved ones will receive the regular death benefit.
Life insurance for children can help your child lock in the lowest possible rates and build wealth early through cash value. All the while, your family is protected if the worst happens, and your child passes away.
If you already have a policy, you could add a child life insurance rider to cover your child without needing to get a new policy. If you want a full policy for your child, term life insurance can work if you want to save money and aren't looking for lifelong coverage. Meanwhile, whole life insurance could be the right choice if you want them to get low rates on lifelong coverage and wealth-building potential. Whichever option you choose, shop for multiple quotes to compare and pick the lowest rates on the coverage you need.
Get a daily dose of Illinois Intelligencer news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Illinois Intelligencer.
More Information© Provided by Xinhua by Xinhua writers Cheng Lu and Tong FangCHENGDU, Sept. 27 (Xinhua) -- Even 78 years after ...
Kiev has lost more than 17,000 servicemen this month alone, according to Russian Defense MinistryFacing pressure from its Western backers ...
New York [US], September 27 (ANI): Canada's envoy to the United Nations, Robert Rae, during his address to world leaders ...
Nikol Pashinyan enjoys American support because he is willing to harm his own people to serve US interests, Kevork Almassian ...
The US-led bloc is gradually turning into a new ?Axis?, Dmitry Medvedev has warnedThe West is pushing the world closer ...
Separatist authorities in Nagorno-Karabakh say at least 68 people are dead following an explosion that rocked a fuel depot as ...
BEIJING, China: A respected Uyghur scholar, known for her extensive work in studying Uyghur folklore and traditions, has been sentenced ...
BEIJING, China: Local authorities said a fire at the Shanjiaoshu coal mine in Guizhou province, southern China, killed 16 people ...
MADISON, Wisconsin: Last week, five flamingos were seen along a Lake Michigan beach in Wisconsin, attracting a large crowd of ...
LONDON, UK: The UK government said over the weekend that it could downscale the scope of the High Speed 2 ...
LAHAINA, Hawaii: This week, officials are expected to begin lifting restrictions on entry to the burn zone in Lahaina, Hawaii, ...
LONG ISLAND, New York: On Thursday, a bus carrying members of a high school marching band traveling to a music ...