Posted by Ernest P. Valliere
No parent wants to think about losing a child. But in the event that your child dies, a life insurance policy can pay for funeral expenses and other final costs, including lost income if you or your spouse takes an extended bereavement leave from work.
But a child life insurance policy isn’t just about the possibility of the worst. There are many living benefits to consider, which will serve your child in the long run:
- Locking in rates while your child is young. Insurance rates get higher as people get older. That’s why buying a whole life insurance policy while your children are young is so important. It locks in a low premium rate in childhood, providing your child with affordable insurance for the rest of his or her life.
- Cash value accumulation. If you buy your child a whole life policy, part of the monthly premiums will go toward accruing cash value. As that cash value accumulates through the years, it creates a pool of money your child can draw on for tax-free loans when he or she is older.
- Teaching financial responsibility. Having an insurance policy for your child and telling them about the policy, payments, and purpose can teach them the importance of careful financial planning. It can also help them learn how to consider risk and manage bills and money. These lessons go a long way toward paving the way for a stable and successful financial future.
To learn more about whole life insurance, and how it can help protect your family and benefit your children, call SBLI at 1-800-438-7254.