I have a 6-year old child. How much life insurance premium should I purchase for my child?
Sue
Dallas TX
When someone has big dreams like high return from investments or other plans like to begin college funds, he/she may think of purchasing life insurance plan to fulfill those. However, a life insurance policy is usually purchased to replace the lost income when the breadwinner of the family died. If your spouse, who brings money to your family, died, it would be a great financial loss for you so getting a life insurance plan is necessary. Since a child does not typically bring money for the family, some may have a second thought of purchasing child life insurance.
If you want to purchase child life insurance, you do not need to worry if the type of child life insurance will benefit the whole family. Child life insurance will help you cover final expenses like burial and funeral costs. In your case, you may want to consider purchasing a term life insurance policy with a small face amount.
When looking for the best child life insurance policy, it is important to shop around and make a list of life insurance companies that offer term life insurance for children. You will notice that the premiums offered are lower than the premiums for adults. Check if the insured child can collect the accumulated cash value or can borrow cash against their policy. The coverage starts once the life insurance company approves the child life insurance application. You may want to check if there is a waiting time.
Once your child comes of age, he/she can choose whether he/she wants to purchase an additional life insurance. He/She can also choose to continue with the life insurance policy or get a new life insurance plan on his/her own. Young adults can easily get a good life insurance at a reasonable cost.