Life insurance for children is something that many people disagree about and, unlike personal health insurance, it’s not an essential purchase. That being said, there are reasons why you might consider it worthwhile to invest in health insurance for your child. A big part of your considerations may be the amount of money you have to spare as a family. If finances are tight you might want to spend what you have on providing schooling or clothing for your children rather than on insurance premiums for them. On the other hand if you have the money to spare you may want to consider purchasing life insurance for your children for several reasons.
Paying for a funeral Thinking about the death of your child isn’t something you want to do but it’s a sad fact that it’s a possibility. You may want to be prepared for financial issues that will surface should your child die, such as paying for the funeral. Even in the case of a child these expenses can run into tens of thousands of dollars. That’s not an insignificant amount of money and it could be helpful to know that you will have the cost covered should the worst happen.
Coverage for future health problems Just because your child is healthy doesn’t mean they always will be and it may be that you want to ensure they have health insurance coverage before any health problems surface. Once a policy is underwritten it will not be cancelled simply because a health problem occurs, although premiums may increase. That’s why many parents decide to purchase whole life insurance for their child so that the policy is in place for the rest of their lives. This prevents possible problems acquiring insurance should a child go on to develop a condition such as diabetes. It should be noted that whole life insurance is more complicated to acquire and the premiums are a lot more expensive. You need to consider whether the outlay is worthwhile.
There isn’t an easy answer Traditionally life insurance is purchased to provide financial protection for the family of an individual should they die, visit AAMIs life insurance page for more on this. The premiums are paid to cover funeral costs and to allow for the payment of debts such as mortgages. In the case of most adults who have dependents life insurance is a necessity if they want to make sure their family doesn’t have financial difficulties should they die. It’s all about ensuring there is enough financial provision. This does not apply in the case of a child. The sad fact is that the family is usually better off financially if a child dies, although obviously not emotionally. This means that the answer to the child life insurance question is complicated and there isn’t really a right or wrong one. You may think that it’s worthwhile knowing that the funeral is paid for, to take some of the worry away from what is a very difficult time. What you decide will depend a great deal on your family circumstances.