This Christmas season, we’re asking you to think outside of the wrapped box when it comes to gift giving. Many gifts that children get are a temporary joy – they can use them for a year or two before the toys or clothes are outgrown and passed down, donated, stored in a box, or even sold. What if you could give a gift that lasted longer than that? One that could help pay for a child’s or grandchild’s college education, a wedding, a down payment on a car or first home? One that could provide future security? These are all things that a children’s life insurance policy can do.
Why Get Life Insurance for a Kid?
You might be thinking, “Why would I buy a life insurance policy for a child? They’re so young and don’t need it.” Well, you’re partly right – they ARE young, and that makes it a great time to get one started. Most of the time, young kids are in great health and have no trouble getting life insurance at a low cost. One of the great benefits of a whole life policy is that it works kind of like a savings account. It builds what’s called a cash value, so when the child turns 18, you can hand the policy over to them and they can decide to keep the policy or cash it out for college tuition or a car or whatever other needs they may have then or in the future.
On the other side, it’s hard to know what’s needed when it comes to life; life insurance policies are designed to help the people who are still living. If the unthinkable ever happens and the child’s life is lost, the policy would provide a tax-free cash benefit that would help cover funeral costs, counselling for family members, lost wages for extra time off work, or anything else the beneficiary may need or wants to do in memory of the child. That might include making a donation to a non-profit organization or school or creating a scholarship fund in the child’s name.
Most policies for children are whole life policies, meaning they last for their whole life as long as they’re paid for. You can get a children’s life policy for kids as young as 15 days old all the way up to age 17. The great benefit of this is that the coverage is there before future health problems could pop up. If health problems arise later in life, it may be difficult for the child to get life insurance as an adult.
An Added Perk!
Did you know some home and auto insurance companies also offer life insurance? AND if you add a life insurance policy to your plan (even if it’s for a child or grandchild) you get an extra discount? Well, you can! We’ve even seen the annual discount on home and auto insurance cover the yearly cost of a life insurance policy for a child, so you’re essentially getting a great value and a great gift for that special child in your life.
If you’d like more information on children’s life insurance policies, let us know. We can look at options that work for your family as you celebrate “the most wonderful time of the year” with a gift that keeps on giving.