Getting Life Insurance for Children
Child life insurance has been one of the centers of various debates, specifically on whether or not it is practical to get one for the children. One side says it’s a complete waste of time and money while another disputes the claim, firmly believing that it’s perfectly fine to spend if it is for the love for the kids. Then again, this is all just a matter of perspective. Nevertheless, in order to fully make up one’s mind about regarding his/her stand, one should be knowledgeable in the matter.
Child life insurance policies are not entirely different from adult insurance policies; as a matter of fact, they are quite similar with only the slightest disparities. Just like other life insurance policies, there are two main types of child life insurance; the child term life insurance and the whole life insurance.
Child term life insurance policies are bought for the sake of temporary protection and coverage. Once the term indicated in the policy is finished and something were to happen to the insured, he/she could not receive benefits anymore, thus making this policy the most affordable type in the market. The chief reason of having this type of insurance is to ensure that in case of emergency, funeral expenses are covered by the policy. Additionally, some term life insurance plans can provide financial aid in case the insured child develops an illness during the term.
Whole life insurance, on the other hand, is typically bought for both internment expenses and for investment purposes with which the child would benefit from in the future. Unlike the term life insurance, the whole life insurance provides the opportunity for profit by means of cash value, which usually starts to build up after the third year from which the policy took effect. Furthermore, getting a whole life insurance at this age would be very practical since it is relatively inexpensive as to when the child would get a life insurance later on. This type of insurance policy is also helpful, especially if the child has a known medical history or condition that would make it difficult for him to obtain a life insurance in the future.
Getting an insurance for children is often overlooked by the parents simply because the notion that these children would need an insurance seems very impractical and that something would happen that would trigger their deaths is just far-fetched. After all, who would want to think that their beloved child would pass away? Still, there are some things that are beyond the control of humans and something is bound to happen. However, it is up to the parents whether or not they deem the risks petty and irrelevant to actually pass up the opportunity for insurance for their children.
Alternatively, there are those who believe that it would be much more productive to just use whatever money you would shell out in purchasing a child life insurance for other things such as savings or investments. Children dying, though not impossible, are improbable; considering the fact that they don’t have as much health problems and issues than that of the adults. In this light, it would probably be more useful to make sure that the parents are the ones who are not underinsured as their insurance is more important, given that they have children who are dependent on them.