lhia logo bar
Fall 2022  Volume 15, Number 3        
 

This Just In ...

Why Buy Child Life Insurance?

Life insurance provides the peace of mind to know your loved ones will be taken care of financially if something happens to you. But what if something happens to your children?

The Pros of a Child Life Insurance Policy

Some parents may feel buying life insurance for a child is unnecessary and even morbid. However, there are advantages to taking out a policy on a young life, including:

  • Guaranteed future insurability: a child life insurance policy guarantees your child will have life insurance as an adult, regardless of their health.
  • Cash value build-up: like whole life insurance policies, child life insurance policies also build cash value for things like college tuition or a down payment on a house.
  • Funding to cover costs in the event of a tragedy: to cover funeral costs and other expenses.
  • Funding for emergency medical needs: some child life insurance policies also come with a rider that covers emergency medical expenses.

The Cons of a Child Life Insurance Policy

Some drawbacks to consider include:

  • Low rate of return: the rate of return on child life insurance policies is often lower than other investments.
  • Low coverage limits: coverage is usually limited to $50,000 or $75,000, which will be insufficient once your child grows into an adult.
  • Long-term expense: a child life insurance policy is a long-term expense, and you might be setting up your child to pay premiums for decades.

Your child might actually already be covered by a child rider under your life insurance policy. This option provides a small death benefit for burial and related expenses. Ultimately, the decision of whether or not to purchase child life insurance is a personal one based on your own circumstances.

[return to top]

 

 

 

 

 

In this issue:

This Just In...

Retirees Should Check Their Medicare Coverage Before Traveling

What You Need to Know About Mental Health Care Insurance

How to Save on Health Insurance

A Quick Look at Child-Only Health Insurance

 

 

 


The information presented and conclusions within are based upon our best judgment and analysis. It is not guaranteed information and does not necessarily reflect all available data. Web addresses are current at time of publication but subject to change. SmartsPro Marketing and The Insurance 411 do not engage in the solicitation, sale or management of securities or investments, nor does it make any recommendations on securities or investments. This material may not be quoted or reproduced in any form without publisher’s permission. All rights reserved. ©2208 The Insurance 411. www.theinsurance411.com Tel. 877-762-7877.