In April 2005, Redbook did an article on 5 Things Every New Parent Should Do, one of which was “Buy Life Insurance,” citing that parents should consider his or her surviving spouse’s increased needs should he or she die now that a child or children are added to the family.
What the article failed to mention is that every new parent/grandparent should also purchase life insurance on their child/children/grandchildren.
Let’s look at a few benefits to purchasing life insurance on your infant child or young children.
#1: Rates are extremely low! Expenses tend to add up when children are added to the mix, but with rates as low as $15 on a newborn (male) or $13 (female), it doesn’t take a lot to budget this into your monthly expenses.
#2: Benefits are high. The above-mentioned prices were for a $25,000 whole-life policy. The face amount does not change, nor does the premium, therefore making it easy to maintain the coverage, even if your child takes over the policy once he or she is old enough to be responsible for the premium.
#3: Acts as a Savings. A whole-life policy builds cash over the years which can be borrowed or cashed in at a later time for whatever need may arise.
#4: Gives parents a chance to breathe and time to grieve. Grieving parents and grandparents tend to lose interest in many things, work included and this can create a financial strain on the entire family. Having a life insurance policy on your child/children/grandchildren can alleviate some of this strain.
#5: Only pay for 20yrs. This is NOT term insurance. Some companies offer a “paid up option” after twenty years on children’s life insurance policies, which means the premium stops but the face amount stays the same (or close) as do the cash benefits!
If you can’t afford individual policies on your children/grandchildren, check into adding a Child Term Rider to your personal life policy.
No one likes to think of burying their child; tragically, many do and this can create a hardship like no other. Don’t wait until you’re faced with this terrible heartache before you realize the importance of having a life policy on your child/children/grandchildren. Give us a call today and set an appointment to get them covered! 337-433-1683
Until next time, pray for the best but prepare for every contingency…..
Tommy Curtis and Staff
Is an insurance agent with integrity and your best interest in mind. Call to speak directly to him.
Address: 509 7th Street
Lake Charles, LA 70601
Office Hours: M-F 9a - 5p (CST)