Should You Buy A Life-Insurance Policy for Your Child?

When you ask your life insurance agent for best possible insurances, have you ever thought of purchasing a life insurance policy for your child? Though your children are young and healthy, you should always hope for the best and remain prepared for the worst as well as unwanted happenings can and always occur without informing.

In particular situations, it makes complete sense to avail a life insurance policy for your child. For instance, if your child is the primary breadwinner of your family, parents who have given up their careers to ensure their child’ future, or if your family’ entire financial future is on your child’ shoulders.

However, if your child is something more than just an income earner, there are some other reasons to insure them. Below are a few.

Future premium protection: If you buy a life insurance for your child now, it will help your child purchasing life insurance in the future. Further, if you purchase the policy now, you can get it at a more affordable rate.Whole life insurance policy has always been a feasible option. As the policyholder is younger, the premiums are also lower. If you purchase a policy when your child is young, the policy value will start growing at an early age, and provide good cash value to borrow later in life.If something happens to your child, you will not have to worry about the money to pay for the funeral and burial costs amid immense grief.

Alternatives to purchasing a separate child life policy:

If you presently hold a life insurance policy, you can purchase a Child Term Rider for extend coverage to your child/children. This coverage remains until the child reaches a predetermined age (usually anywhere from 21 up to age 25).Instead of paying premiums to an insurance company, you can also put it in a Roth IRA or other investment option. Though this is a feasible option, frequent withdrawal of money from these kinds of accounts can invite huge penalties.