Everything You Need to Know About Child Whole Life Insurance
We all want the best for our children. And whether you are a parent, grandparent, or legal guardian, we want the best for our little ones. We want them to live long, healthy, and successful lives. Therefore for some people, it translates into protecting their kids from hurdles and road blocks in the way with child whole life insurance.
One way to do so is by buying child whole life insurance and supplying financial protection when the unpredictable happens. It may not look like a top priority, but it’s worth considering. Once you lock in low insurance rates, it acts as an investment vehicle for your children.
Child whole life insurance can supply a safety net for loved little ones who depend on you financially.
What is child whole life insurance?
Just like life insurance for an adult, child whole life insurance provides financial protection with an insurance company. Monthly or annual premiums are paid in return for the financial benefit.
Different from the common life insurance, this financial benefit can be used in case the child dies, turns 18, 21, or has some other life event.
With a child’s whole life insurance, the child is insured. The parent, grandparent, or legal guardian is the policyholder – this means they can be the beneficiary who receives a payout if the insured is unable.
Life insurance is the kind of investment we hope to never need to use.
A benefit for buying child whole life insurance can be to lock insurability for your kids. That can be a concern through your child’s adult years if they develop medical issues or enter a profession that makes them uninsurable.
Beyond covering funeral costs in case of death, This type of insurance policy ensures your children build cash value which can be taken out for college or the down payment on a house.
Downsides to child whole life insurance
Some studies have identified COVID-19 long-term effects in children. For some parents, protecting their kids’ insurability is an important way to guarantee they have a bright future ahead. Getting whole life insurance for your kids can prevent them from not being insurable for any potential health issues, COVID-related or others, that they may develop later in life.
On the downside, child whole life insurance is a long-term commitment. When you buy a whole life insurance policy, you can expect to pay premiums for a couple of decades. Your child will be insured during all this time if something happens. However, if you stop paying they will no longer be insured under that particular policy.
If your budget becomes tight for a while, you may still be able to use the policy’s cash value. That way you can cover the premiums payments if the policy has built up enough cash value. But it is important to remember that there will be less cash value for your kid if they need it later in life.
How can I know if child whole life insurance is a good fit for my family?
Although child whole life insurance may be easier to get, when compared to adult life insurance policies, we do not recommend researching and buying it by yourself. Give us a call or contact us and one of our expert agents will gladly help you at no charge to you.
As child whole life insurance is a policy you are paying for a quite number of years, you should look for policies issued by strong, reputable, experienced companies. Someone might show you several plans to choose from, and this can be confusing and overwhelming.
The process itself is shorter than buying for an adult, as the questionnaires are usually smaller and there’s no requirement for physical exams. After the policy is written there will never be a requirement to provide proof of insurability again in their lives.
The premiums for this kind of insurance tend to be guaranteed, so they won’t increase as time goes by. Also, there are a bunch of opportunities where you may be able to access the cash value amount while the child is alive.
As the policyholder, you can transfer the policy to your child at any point. You can do so once they’re adults by letting them take over the premium payments. The younger the child is when you buy them a policy, the cheaper the premiums will be for life.
The premium costs are related to the amount of coverage you buy, and the type of payment schedule you prefer. The further you set the payout, the lower the premium.
Our experts’ recommendations
1. Be sure you can commit
A child’s whole life insurance policy can endure for a few decades. You need to keep paying your premiums to keep them insured and build cash value. You can transfer it to your child once they can manage their own bills, but it can take many years.
2. Don’t shop alone
Buying child whole insurance may take less time than buying other types of insurance, but it doesn’t mean that it is an easy task. The insurance world is full of complex terms, documents, and phases that can make the entire process difficult and exhausting. Working with an experienced Florida Health Agency agent can take this weight off your shoulders.
3. Look for guidance
There are a lot of companies offering a catalog full of policy options with different costs, lengths, and cash values. Florida Health Agency market experts will analyze your budget and needs. Our work is to find the perfect policy for you and your family.
Keep in mind that shopping with Florida Health Agency is completely FREE in all cases. Not a dollar will be charged from you or add up to your premiums if you choose to buy a plan that one of our experts found for you. We want to help you make a well-informed decision on what’s best for you and your children’s future.
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We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all your options.
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