Life Insurance on a Baby or Toddler? Really?

Life Insurance on a Baby or Toddler? Really?

Sometimes the need for insurance is clear. You’ll need car insurance when you drive. You should have business insurance when you start a company. When you purchase a house it is time for homeowners insurance. But what about life insurance?

Is there value in purchasing life insurance at the birth of a child or when they are just toddlers?

Actually, grandparents will often buy at least a small insurance policy on grandchildren upon birth. The reasons? There are several.

First, there’s the sad fact that life is fragile and even a child could be pass due to a variety of reasons. In such a horrible situation, even a small life insurance policy can provide a family some financial relief.

Beyond that, life insurance can “lock in” coverage for a young person even if their health would deteriorate later in life. Once you have coverage and maintain it, it can’t be canceled. Some policies may provide the benefit to purchase additional coverage later in life. This can be significant should the child become uninsurable later in life.

Perhaps, the most popular reason parents and grandparents buy cash value life insurance on children is to build a financial nest egg that could be used by the insured later in life. Funds could be used to purchase a first vehicle or to help with college costs. In some cases, young people will continue the policy, building even more value for a down payment on a home or to take advantage of other opportunities.

Life insurance on children is very affordable. Long after toys and clothes have been sent to the landfill, a life insurance policy may still be building value. It is a gift worth considering.

If there is a young person in your life, think about the value of life insurance. Contact one of our independent life insurance specialists for a no obligation quote. They can compare policies from a variety of companies, and you make the final choice that works best for you.

Yes, life insurance on babies and toddlers is a real thing. Learn more by contacting us today.


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