As a life insurance salesperson, one of the hardest things I have to do is ask parents if they have life insurance on their children. Obviously, the last thing parents want to think about is the possibility of the premature death of their child. But, realistically, it is something that needs to be addressed. Here are a few key reasons to purchase life insurance on your child(ren).
Guarantee their insurability. If you purchase a small children’s policy, most of the policies have the option to purchase more insurance as your child gets older, guaranteed. Or, if you buy inexpensive term coverage, the guarantee that they can convert it to whole life (permanent coverage) in the future. With some policies, you can even double the coverage at age 21 or 25. The insured cannot be denied or charged higher premiums if their health has changed, but will be issued at the current age.
Cover loans. As your child grows, you will probably be asked to co-sign auto and/or student loans. Those would be your financial responsibility if something were to happen to your child.
Cover funeral costs. No one wants to think about losing a child, but reality is that over 9,000 children in the United States (between the ages of 1-14) died in 2015. The leading cause of death was accidents.* Average cost for a funeral in Wisconsin is approximately $10,000.
Cover final expenses. In the event of a prolonged illness, life insurance will help cover those final health-care expenses, counseling for family members, and time off from work for parents.
College savings. A permanent life insurance policy accumulates cash value on a tax-deferred basis. Most policies have previsions that provide access to the cash values. The most popular prevision is to take a loan against the policy to keep the coverage in force.
Please talk to your Western agent about life insurance for your children or grandchildren. You will be surprised how reasonable the cost is.
*Taken from the 11/27/17 National Vital Statistics Reports
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Call 877-935-2467 to speak with a Western Fraternal Life Representative.