While insurance and financial professionals argue over the necessity of life insurance for children, there are distinct benefits to this type of policy. Many people think of life insurance as a form of income replacement (which obviously doesn’t apply to children), but it has many more benefits for both parents and the insured children themselves.
First, let’s take a look at what buying life insurance for children can do for parents:
· No one wants to think about their children dying, but life insurance can lift the financial burden of funeral costs if it should happen.
· Following the death of a child, many parents need to take time off from work and/or may need counseling. Life insurance can help them continue to pay necessary expenses.
· Some parents wish to start a charity in the name of their deceased child. Life insurance can provide startup capital.
Now, let’s look at what the same policy can do for the far more likely event that your children grow well into adulthood:
· A renewable life insurance policy can guarantee you child’s insurability as an adult (as well as lower premium costs), regardless of any health complications.
· Life insurance protects your children from childhood into adulthood, long before they even recognize the value of the coverage.
· If the policy you buy accumulates cash value over time, your child can use that money to help fund higher education or to buy a house.
· Your child can borrow against a life insurance policy’s cash value (tax-free) if in need of a loan, which can otherwise be tough to get without a credit history.
If you’re still unsure about purchasing life insurance for your children, talk your independent agent and your family’s financial advisor for more details.
We’ll assess your needs and help you make the right decision. Call Crawford-Butz and Associates at 314-752-2500 for more information on St. Louis life insurance.