For many, the subject is taboo. But there are many reasons for buying life insurance on a child…and some of them may surprise you.

WHY BUY LIFE INSURANCE ON A CHILD?

  • Protects a family’s financial security by making funds available so parents can take a leave from work to help the family deal with the loss.
  • Provides permanent insurance at children’s rates. The policy can be paid up in as early as 20 years.
  • Creates a stable investment option with tax-advantaged growth and cash value that can be accessed to fund education.


WHY IT MAKES SENSE FOR CHILDREN

  • Insuring them when they are young and healthy is easy and affordable.
  • Lock in lower rates today. Lifestyle, hobbies and career choices later in life may make them uninsurable or subject to higher, rated premiums.
  • A 20 pay plan provides them with paid-up insurance at a time when their needs are high but their discretionary income may not be.
  • They can use the cash value in the policy to fund education, or anything else they may need.
  • They’ll have permanent insurance protection that can provide for their own family’s financial well being and the tax-efficient transfer of assets to their heirs.
  • Insuring a child can protect the financial security of the whole family since the loss of a child can trigger the loss of income for one or both parents as they cope with the physical and emotional stress.


CUSTOMIZING YOUR PLAN

There are a variety of optional riders and plan features available to help tailor your child’s plan to ensure it continues to meet their needs. These include:

  • Applicant’s death and disability waiver ensures that premiums continue to be paid should the person paying for the policy become totally disabled or die.
  • Flexible guaranteed insurability option guarantees their right to purchase up to $500,000 of additional insurance in the future without evidence of insurability.
  • Critical illness insurance can be added to provide funds to help manage personal and medical expenses so you can focus on your child’s recovery.  Go to my Critical Illness page to learn more.
  • Excelerator deposit option allows extra deposits above the required guaranteed premium to help maximize the long-term, tax-advantaged growth and value in the policy.
  • In adulthood, term insurance can be added to cover temporary insurance needs. Preferred underwriting rewards them for their good health and lifestyle.



Example of how affordable this investment in your children's future can be:

Female, Age 11, 20 Pay option with Paid up Additions (Only pay for 20 years)
$50,000 Participating Whole Life till Death
$50,000 Critical Illness Rider Level to 75

Base Plan coverage: $67.28 / month ( $2.17 per day )
Critical Illness Rider:  $19.44 / month ( .62 cents per day )

Total Required Premium : $86.72 / month ( $2.79 per day )
Payment for life insurance ends after 20th year
Payment for CI continues till 75 years of age

At current dividend scale and Non Guaranteed Values:
Age 60: Total Cash Value of $107,917 and Death Benefit of $252,522
Age 85: Total Cash Value of $352,239 and Death Benefit of $443,752
Age 100: Total Cash Value of $612,973 and Death Benefit of $612,973
(Values non guaranteed)


Alternatively - if you started your daughter when she was 1 years old


Female, Age 1, 20 Pay option with Paid up Additions (Only pay for 20 years)
$50,000 Participating Whole Life till Death
$50,000 Critical Illness Rider Level to 75

Base Plan coverage: $55.31 / month ( $1.78 per day )
Critical Illness Rider:  $18.99 / month ( .61 cents per day )

Total Required Premium : $74.30 / month ( $2.39 per day )
Payment for life insurance ends after 20th year
Payment for CI continues till 75 years of age

At current dividend scale and Non Guaranteed Values:
Age 60: Total Cash Value of $131,809 and Death Benefit of $309,004
Age 85: Total Cash Value of $424,144 and Death Benefit of $534,312
Age 100: Total Cash Value of $735,236 and Death Benefit of $735,236
(Values non guaranteed)


E&OE


insurance for your Children

​Contact me today to run an illustration for your children.

​Insure their future.