Life insurance on children is a topic that gets many mixed opinions and a variety of different viewpoints. There are those who believe insurance for children is a waste and others that see it as important and beneficial. I am one who sees the importance, recognizes the benefit, and perceives the value.
First, life insurance premiums are partially based on our age at the time in which we apply. Typically, the younger we are, the more affordable the coverage is. The rates are generally the best they will ever be when locked in as children. Second, premiums are partially based on our health at the time of purchase. In most cases, we are in the best health when we are young. This is best reflected in children’s rates. Third, with payment options such as single premium, 10-year pay, and 20-year pay, it is a good, affordable way to leave a memorable legacy to our children and grandchildren.
Second, I believe in providing individual policies on children rather than adding them as riders on a parent's plan. Life insurance is a financial benefit that stays with them as they grow older. You can transfer ownership of the policy when they become an adult. Once the policy is issued, the rates are locked in and cannot be changed. Guaranteed insurability can be added as a rider to our whole life product, which allows options at various ages or triggered by life events, such as marriage or birth of a child to purchase more coverage, regardless of your health. Some plans allow for loans and allow you to borrow against your cash value, providing funds for, but not limited to things such as college tuition or purchasing a home.
As a parent and grandparent, I understand that we do not want to think about losing a child. I believe in being prepared, as we live in an unpredictable world and anything can happen. Life insurance cannot replace a loved one, but can minimize or eliminate the financial aspect of that loss and may put additional resources in the budget, allowing one to take time off work to grieve, in the event of a loss.
I simply ask families to look at the value, weigh the advantages and benefits, understand the importance, and make an informed decision.
Contact your Western Fraternal Life agent or the Home Office at (877) 935-2467 about insuring your children or grandchildren.
by Stan Blythe | Agent for Western Fraternal Life
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Call 877-935-2467 to speak with a Western Fraternal Life Representative.