Life insurance may not be the first thing that comes to mind when you think about children. However, it can be beneficial when you have a family, as it guarantees your child or grandchild's future insurability and provides financial funding for significant expenses.
Purchasing a life insurance policy for a child is simple. Parents or grandparents with parental consent can begin the process by contacting a licensed agent. There is usually no need for a physical examination if the child is born healthy. However, if the child is born prematurely or has health concerns, there may be a waiting period until they turn one year old or older.
Child life insurance policies are permanent and provide coverage for the entire life of the child. These policies offer flexibility and can be canceled at any time by cashing out the policy's value or discontinuing premium payments. One thing to note is that cashing out the policy might have tax implications for permanent policies. Additionally, policyholders can take out loans against the policy's cash value. It's essential to consult an insurance professional to discuss your options.
Below are three things to consider for the importance of life insurance for your children.
Securing your child's future insurability: Getting life insurance for your child at a young age secures their future insurability. They'll have a permanent policy for life, regardless of any future health issues. Additionally, getting coverage for younger and healthier individuals is more affordable. So, getting coverage for your child as early as possible is better to ensure their access to insurance and get a better policy at a more affordable rate.
Cash value: Child life insurance is an investment, providing a solid financial foundation for your child. The accumulated cash value in the policy can be used to finance significant life events such as buying their first car, paying for college, or even making a down payment on a house in the future. The flexibility of child life insurance allows the policy owner to utilize the cash value for any purpose.
Death Benefit: This is a topic no one wants to think about, especially when it comes to your children; if a child were to pass away at a young age, the life insurance death benefit would provide financial assistance to cover expenses such as medical bills, funeral costs, and could even leave a legacy. There are examples of families who had the foresight to purchase permanent life insurance policies when their child was young, and under terrible circumstances, the child fell ill or passed away suddenly. The death benefit could then be used for expenses or even to honor the child or cause.
While considering a life insurance policy as a gift for your child or grandchild, you make a wise decision. However, it's important to thoroughly understand the policy before making the purchase. This will ensure the policy remains in force throughout your child's lifetime and provides the intended benefits. To help you navigate through the complexities of various policies and select the right one, you can consult with a Bedrock Financial Group Advisor. We can guide you through the process and help you make an informed decision that is best for your child's future.
If you want to know more about Bedrock Financial Group and our services, please continue reading below.
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At Bedrock Financial Group, we're a Veteran and First Responder-owned full-service insurance agency. We provide complimentary consultations and no-cost Medicare reviews. Our home office is located in New Albany, IN. We have a Senior Resource Center in Stanford, KY, and a full-service agency in Asheville, NC. We also offer the following services:
Life Insurance
Annuities
Wealth Management
Home + Auto
Renter's + Condo + Home Insurance
Medicare Plans
Medicare Advantage Plans
Medicare Supplement (Medigap)
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Final Expense (burial planning)
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We service the following states: Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Missouri, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Alabama, Connecticut, Nevada, and West Virginia.
If you have Medicare questions, you can call our team at 502-200-1516. If you want to schedule an in-person Medicare Benefits Review, please call 833-905-1060. If you would like a comprehensive overall review, call 833-905-1060 or email
hello@mybedrockfg.com with your contact information, including your name, city, state, and phone number, and we will connect with you.
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