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Child Life Insurance

As parents you want only the best for your kids. Child Life Insurance is one of the ways that you help protect their future, if something were to happen and you weren’t there.There are several different life insurance options that are available for children. Lets start at the beginning of a guarantee. In most cases children under 18 years of age only qualify for what is commonly known as “Standard” underwriting class. This is because children do not have a medical history for the underwriters to evaluate.

Young children are most suitable for Permanent Insurance. The advantages of this type of Child Life Insurance is that the policy can be owned by a parent, a grandparent, or another significant other in the child’s life. These types of policies also accumulate cash value, that is to say that a portion of the premium paid is set aside in an account that can be accessed by the owner of the policy.

As the child reaches to age of 18, the policy can be transferred into their name or the original policy owner can remain in control of the policy for as long as they want. Children may also be attached as a “rider” to the policy of their parents. The cost for this type of rider is minimal, but in turn the death benefit amount is significantly less than that of the owner of the policy.

Another option, if the child is 18 or older, they can also get a term policy. A term policy is for a specific number of years, usually 1, 10, 15, 20, or 30 years. The death benefit and the premium remain level for term of the policy. Unlike permanent insurance, there is no cash accumulation.

Although we don’t like to think about or even imagine having to deal with the death of a child, the death benefit, as with an adult can be used to pay final expenses. We all know that life insurance for adults has stood the test of time. It has helped many individuals and families through very difficult times following the death of a loved one. Child Life Insurance can do the same for the safety of your family and the security of your children.

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