Life Insurance for Children

Life Insurance

Life insurance is for everyone, even children. Although we don’t seem to talk about children needing life insurance, it is a way of protecting an act of love. Even if your children are still dependant on you, there are reasons why such a policy is a good idea. So, let’s see how important children’s life insurance is, and see if it is a great idea for your family.

As with all life insurance policies, life insurance policies for children are contracts with insurance companies. However, children’s policies are more focused on providing financial protection for the life of the child, but still include protection if the child pre-deceases you. This kind of insurance guarantees long term financial security to a dependant’s child. If your child has a hobby involving risky, such as scuba diving, motocross, or horseback riding, perhaps you should think about getting insurance.

The Benefits of Children’s life insurance:

  • Child’s Funeral Expenses Coverage – However unhappy or uncomfortable thinking about it makes us feel, if something ever happened to your child, having this insurance would be beneficial. You would be able to pay for the child’s end-of-life costs. Any counselling would be paid for the whole family, and the family or guardians would be able to take time off work to grieve and recuperate after the loss.
  • Future Investment and Savings for Child – children’s life insurance allows parents and other family members to leave a future financial tool for the child. This can go towards future houses, education, or even trips.
  • Affordable Premiums are locked in – A child’s life insurance policy has cash value. The larger portion of paid premiums go towards the cash value, which takes time for cash to build.
  • Child’s Insurability is Protected – child has guaranteed coverage even if he or she develops health issues at some point during life.  Also, your child will be able to purchase or convert life insurance into permanent life insurance even more coverage in later years without having to get a medical exam.

There are several different types of Children’s Life Insurance. One is to have the child be a “rider.” The child “rides” on your policy and is called a term rider. This dependant is added to the parent’s policy. Term riders usually have less coverage, but because of that, are less expensive. Another type of life insurance for children is permanent or Whole Life insurance.  Whole life insurance has lifelong coverage, and is an independent policy that does not have an expiry date. This policy is solely the children.

Getting life insurance for a child is a big and personal decision to be made, and it’s a decision that requires some discussion and research. To choose the best available option for your family, ask your insurance broker at Canadian LIC to advise you. Let your decision be comfortable knowing you have the best information available to protect your family.