I recall a conversation with a family member years ago about a life insurance policy for his young son. He became very defensive and told me that our conversation was far too morbid for his taste. Needless to say, I didn’t write the policy.
If you think in such staunch terms then it is a morbid conversation. But the right policy addresses much more than mortality. I have a young son myself and I don’t want my mind to go there but if you can look at this without some emotion, there are some real legitimate reasons to secure life insurance for your kids.
Insurability – Unfortunately we still haven’t found a cure for diabetes and we never know what the future holds with the health and well-being of our kids. My wife was diagnosed with juvenile diabetes at age 3 and she is very fortunate that her parents got her insurance then. Finding her insurance at this point has been extremely difficult. The older you get with any medical issues makes securing life insurance either impossible or a budget buster.
Get a policy now and at least your kids will have something later. In the event that their health changes, they’ll thank you later.
Cash Value – If you chose a form of permanent insurance such as a whole life or universal life policy the cash accumulated could prove useful to them at a future date. A downpayment on a house or wedding or during a time of financial difficulty. I certainly wouldn’t recommend this if they have health issues but if they are older, healthy and have secured other insurance of their own it makes sense.
Guaranteed Insurability – I wouldn’t even consider purchasing a policy for your kids unless this rider is available. When you purchase life insurance for your kids, you typically aren’t looking at a large benefit. $25,000 – $50,000 for a whole life policy. Now that won’t get them far later in life, but if you purchase the rider they can purchase increases at least equal to the death benefit on pre-determined anniversary dates. Why is this so great? You can buy more life insurance without having to prove your insurability which is huge if you have developed any ailments or illness such as diabetes or other chronic illnesses.
If you have any questions regarding juvenile life policies, we are happy to discuss them with you. Call us any time at 513-444-2100 or email us at cberry@berry-agency.com.
