Insurance For Kids

Parents who want to lay an early foundation for their children’s financial security often buy some form of life insurance as early as possible. The purpose of insurance for kids is not the same as it is for adults because kids don’t have any income or assets to protect. But, as every parent knows, kids grow up fast and they become adults who will need Insurance but unfortunately lot of kids lose their insurability in their growing years due to health changes and this is where buying insurance in early ages helps by locking in their insurability and hence providing the peace of mind that they will always have insurance when they need it as adults.

No parent wants to think about it but in the tragic event of a child’s death, the Insurance payout can allow parents to take time off work to grieve & focus on the tough task of coping with their loss. If it happens to be a time of financial crunch for the parents, then life insurance for the kid can also help in taking care of funeral expenses. If bought when the kids are young and in good health, the cost of insurance is also likely to be quite low.

Last but not the least, there are some amazing cash value policies for the kids which provide tax sheltered growth of savings inside the Life insurance plan during their younger years for use when they grow older. Whole life insurance is one such form of permanent coverage that never expires as long as you continue to make the payments & along the way, a portion of your premiums gets invested and earns interest in the form of dividends. This is called the cash value portion of your policy and it’s what your child can use in future to pay for education, a down payment on a home, or other expenses. This is why many families often “think outside the bank” and see permanent life coverage as a solid, long-term investment for the kid. Some versions of whole life insurance allow you to pay it off 10, 15 or 20 years so that no more payments are ever required while the cash value and after a point, even the death benefit can keep growing throughout the life of the child.