Should I Buy Life Insurance for Children?

June 15, 2021 7:44 am

We all want our children to live a long and healthy life. Parents constantly worry about their children and think about their future. But sometimes, health issues can crop up, especially with something such as COVID-19, which might even present complications in the future. 

Adults with health issues usually get denied insurance coverage. This is because it might not make financial sense for the insurer to invest in a risk. Even healthy adults might be denied coverage if the insurer believes that they live a dangerous lifestyle or that they are prone to developing something based on factors such as medical history, diet, and exercise (or lack thereof). Since past rejections also factor into being approved for a life insurance policy, being accepted for coverage is something that’s best to get right the first time around. 

That is why it makes sense to buy your child life insurance when they are still young, healthy, and living a good and active lifestyle. If your child develops any medical conditions in the future or exhibits poor health, they will not lose the coverage that was obtained while they were still healthy. The idea is that your children would not have to go through the medical exam twice to qualify for insurance, because they are already insured!

Child life insurance is a great way to ensure your child has a lifetime of financial security. Needless to say that if your child grows up to have a family, the insurance can also greatly benefit the whole family. 

It is always important to remember that no one knows what will happen in the future, and planning ahead is a smart way to go about life. Getting insurance is one of these main ways to prepare for certain unknown events. 

What exactly is child life insurance?

Child life insurance is the same as life insurance for adults, but for children! 

The process is simple; once you have a child, you can start paying life premiums up until a certain age. Then, your child can take over the plan and continue paying for the premiums themselves. The process is easy and efficient. Essentially, child life insurance is a premium that is paid throughout your child’s entire life.

Why is it easier to get life insurance for a child?

There is a higher risk of having developed medical complications as an adult, which might cause a life insurance application to be rejected. This might vary because of lifestyle choices such as smoking, adopting a dangerous hobby, or simply genetics and age playing a hand. Keep in mind that ultimately, a life insurance policy is charged on the basis of your life expectancy, and this is determined via the risk category you fall under. The higher the risk, the higher your mortality rate, and therefore, the more expensive your life insurance policy will be. 

With child life insurance, it is an entirely different story. If you buy life insurance when your child is still young, the probability of them getting accepted is much higher. Your child is more likely to be living a healthy and active lifestyle and will probably not have any medical issues. This instantly puts your child in a great position to get accepted. Once the application for your child’s life insurance is accepted and you are paying premiums, the child does not ever need to reapply for life insurance, even when they become an adult. 

Another benefit counting towards getting life insurance for your child is that if they were to pick up a dangerous or unhealthy hobby and lifestyle, such as picking up smoking, they would still be covered by the policy. 

Why should I get child life insurance? 

The best argument to make for getting life insurance for your child is certainly the fact that the policy acts as an investment vehicle for them. You can not only withdraw money from the cash value account or borrow against it, but also, when your child becomes an adult, they can surrender the policy and receive the funds in full. Basically, a fund like this can cover school fees or the initial deposit on your child’s first home. It is also tax-deferred, which means that you only pay taxes on the profits once you actually withdraw the money. 

Furthermore, should the worst come to happen and your child passes away, it is a terrible tragedy that needs time for processing and grieving. No sum of money can replace the loss of a child, but such a sum can help you make sure that all the burial arrangements are precisely to your liking, that you can cover expenses like grief counselling, and even take time off as you need it, whenever you need it, without being worried about money. Furthermore, if you run your own business, a sum like this would help cover business expenses in the event that you would like to close for a while and be with the family. 

Life insurance to help you prepare for the unexpected

Planning for tomorrow can be very daunting, because one does not know what will happen in the future. If you are interested in buying child life insurance or life insurance for yourself, be sure to contact IVALIFE and we can set you up with a meeting to discuss your future goals. This will help us identify what you want and put you on a plan that will greatly benefit you, your children, and your loved ones, while also giving you ease of mind about the future.

With IVALIFE, we have made it possible for you to plan your future with just a few simple steps. We offer an insurance calculator, which will give you an estimate of the sum insured based on your certain lifestyle and needs. We also offer two different life insurance plans: the IVAsecure policy and the IVAprotect policy. The protect policy is a decreasing term one, where you will pay less annually throughout your allotted period of insurance. The IVAsecure policy is a more costly one that will have a fixed amount throughout the time of insurance. You can find more information on our website, and you can find our contact information here if you want to discuss further.