Life Insurance for Children. Do they need it?

Life Insurance for children can be a very easy discussion to have with parents and a very touchy subject to have with parents as well. There are a few basic points to think about when considering life insurance for children.

  1. Insurability
  2. A savings vehicle for tax sheltered savings
  3. Cover expenses should the unthinkable occur

Insurability

Generally, children receive much more favorable insurance rates since they are younger and, in many cases, have not been affected by conditions that adults may have to manage as they get older. This results in lower costs for insurance and, depending on the policy selected, can lock in a fixed premium over their lifetime.

Savings Vehicle

Not only can an insurance policy for a child lock in insurance rates, there are policies available that will allow parents to accumulate tax-sheltered savings over time that can be used as needed later in their child’s life.

The Unthinkable

Of course, no parent wants to think about losing a child. It is a traumatic experience that no parent should have to endure. In cases where savings are not sufficient to cover expenses associated with the cost of a funeral, the parents time off of work, and the potential need to seek professional help to cope with the situation, the life insurance benefit can help fill the financial void.

Having a discussion with your licensed insurance professional can help you navigate the sometimes complicated decision making as it pertains to life insurance. For more information on this topic, feel free to reach out to The DL Moore Agency at info@thedlmooreagency.com or call (404) 662-3301.

Please visit our blog often as we continue to provide information on various insurance and financial topics.

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