Q: Is it a good idea to get child life insurance?

A: It is cheaper if bought when the child is still young. Remember, depending on the policy you opt for, your child will get the benefits of accumulated cash values or even borrow loans against it.

The main reason for buying life insurance is to replace income in case a breadwinner dies. Most children don’t earn an income, so do they still need insurance? In fact, there are several reasons for buying insurance for your child: To lock in a rate so that life insurance remains affordable for your child if they choose to continue the policy when they are adults. To ensure that your child will have it if they later develop an illness and become uninsurable. To help with future financial needs by providing a cash value policy that adult child can borrow against to pay for college, buy a home, etc. Alternatively, adult children can close the account and withdraw the money.

Most companies have teens term riders that a very inexpensive. Children term riders will protect the insurability of the child. These term riders can be converted to permanent forms of life insurance when the child reaches the ages of 18-21. This is a valuable feature if the child is uninsurable because of health reasons.

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