Most people associate life insurance with adulthood or even seniority.
Why? Because the main purpose of life insurance is to contribute to the well-being of your family in your stead, in case you became unable to do so.
However, insurance policies come in a multitude of forms and variations, coverage being offered to all age group, from toddlers to elderly citizens.
This article focuses on insurance policies designed for children and teens.
How do they differ from standard policies and, more important, are they useful or a complete waste of money? Life insurance in its simplest form is meant to protect against financial loss and difficulty.
Children and teenagers don't really financially contribute to their families, do they? Nor do they do too many chores around the house so that you could say help would be needed in case, God forbid, one of them were to pass away.
So, if we are to judge the book by its cover, life insurance for teens and children isn't really a compulsory investment.
In addition to not being very practical, the numerous articles around the web which explain the importance and usefulness of life insurance for children force parents to face the macabre thought of their children dying.
Unless we're dealing with severe hypochondriacs (I'm one of you!), I don't see how such methods can convince people to buy insurance for their children.
Such insurance policies also build cash value and don't usually meet any increase in premiums.
These are the advantages.
Also, the coverage can double by the time your kid reaches 18.
There are two cases in which, I believe, baby/child/teen life insurance would be a good investment.
1.
You and your family depend on the income of your kid.
Is your child a movie star? A singer? A model? Miley Cyrus? If the main source of financial income is that of your kid's, buying insurance should be taken into consideration.
2.
If you have severe medical history in your family and you fear your child may contact a serious illness.
If your child would become ill and thus unable to buy life insurance coverage in the future, a baby insurance policy could be renewed in order to offer the desired protection during adulthood.
Apart from these situations, I don't believe insurance for children is a smart investment.
A better way to care for your kid's future is to save some money and invest them in their name.
Keep life insurance as an option for when they actually need it.
However, if you are considering to buy this product, don't forget to book an appointment with a professional and ask for guidance.
Why? Because the main purpose of life insurance is to contribute to the well-being of your family in your stead, in case you became unable to do so.
However, insurance policies come in a multitude of forms and variations, coverage being offered to all age group, from toddlers to elderly citizens.
This article focuses on insurance policies designed for children and teens.
How do they differ from standard policies and, more important, are they useful or a complete waste of money? Life insurance in its simplest form is meant to protect against financial loss and difficulty.
Children and teenagers don't really financially contribute to their families, do they? Nor do they do too many chores around the house so that you could say help would be needed in case, God forbid, one of them were to pass away.
So, if we are to judge the book by its cover, life insurance for teens and children isn't really a compulsory investment.
In addition to not being very practical, the numerous articles around the web which explain the importance and usefulness of life insurance for children force parents to face the macabre thought of their children dying.
Unless we're dealing with severe hypochondriacs (I'm one of you!), I don't see how such methods can convince people to buy insurance for their children.
Such insurance policies also build cash value and don't usually meet any increase in premiums.
These are the advantages.
Also, the coverage can double by the time your kid reaches 18.
There are two cases in which, I believe, baby/child/teen life insurance would be a good investment.
1.
You and your family depend on the income of your kid.
Is your child a movie star? A singer? A model? Miley Cyrus? If the main source of financial income is that of your kid's, buying insurance should be taken into consideration.
2.
If you have severe medical history in your family and you fear your child may contact a serious illness.
If your child would become ill and thus unable to buy life insurance coverage in the future, a baby insurance policy could be renewed in order to offer the desired protection during adulthood.
Apart from these situations, I don't believe insurance for children is a smart investment.
A better way to care for your kid's future is to save some money and invest them in their name.
Keep life insurance as an option for when they actually need it.
However, if you are considering to buy this product, don't forget to book an appointment with a professional and ask for guidance.
