Are you a parent that has been thinking about purchasing life insurance for yourself? Life insurance can provide a safety net for loved ones that depend on you. In addition to purchasing life insurance for yourself, it is vital that you review the benefits of purchasing life insurance for your child.
So you may be wondering what life insurance for a child is? Like a life insurance policy for an adult, a life insurance policy for a child is a contract with an insurance company. Premiums are paid in most cases monthly or annually in return for the promise that the insurance company will pay a death benefit if the child dies.
With a policy for a child, the child is insured, but a parent, grandparent, or legal guardian is the policyholder. The policyholder also can be the beneficiary who receives a payout if the insured child dies. Parents or Grandparents can choose to transfer policies to their kids at any time but many choose to transfer it when they become adults.
Whole Life Insurance Policies which provide lifelong coverage as long as premiums are paid are typically the type of life insurance policies for children. The younger your child when you purchase the policy, the cheaper it will be and them more time you will have for it to grow.
With a Whole Life Policy, the low rate you lock in at the time of purchase will be guaranteed for the life of the policy. Also, the longer you stretch the payment schedule, the lower the premium.
The three biggest benefits of purchasing Whole Life Insurance for your child are that it ensures insurability, it allows you to lock in a low rate, and it allows you to build cash value.
To learn more, book your consultation with a GAMSG agent today.