There are several reasons parents, and grandparents, should consider purchasing life insurance on children. Some reasons involve subjects everyone wants to avoid. However, the reasons are valid and could have great effect on your child’s future.
· A whole life policy for young children is very inexpensive. It will never be any less expensive! And the annual premium stays the same throughout the child’s life. The annual premium can be as low as $150.
· Many insurance companies will double the amount of life insurance, for no change in premium, when the child turns 18. For example, if you buy a $50,000 at age 6, the policy becomes a $100,000 policy at age 18 or 21!
· While we never like to think about the possibility of children dying, it is not cheap to die. The cost of a funeral is over $10,000.
· We also never like to think about future health problems but it is possible the kids could get some disease or illness that would make them ineligible for life insurance later in life. It makes sense to buy the insurance while they are healthy.
· Life insurance is a good investment, not for you or for your kids, but for their children. If, say the child lives to be 80, the premiums paid would be in the $15,000 range but the policy would pay $100,000.
One can usually purchase life insurance on a new born after the baby is 30 days old.
Henry Lowndes Jr.