Saturday, December 27, 2014

Life Insurance for Children

Life Insurance for Children at a Glance

Life Insurance for Children
Life Insurance for Children may sound like the last thing in your mind and probably the last person who needs a life insurance policy in your house. But, among the many financial decisions parents and grandparents face today, buying life insurance for children is one that can make l lot of sense.

In general, you'll have to be in healthy to buy any life insurance. If for any reason you are not, you will pay a higher price in premiums or in worse case scenario you may not be able to buy life insurance at all. By buying a permanent life insurance for your children today, you'll help ensure your children's ability to have some protection later on in their life, even if they become less healthy when they reach older ages.

Should you buy Life Insurance for Children?

There are situations where a Life Insurance for Children makes sense, but in most cases, experts suggest it’s more important that the parents have life insurance themselves before considering buying one for their kids. Sometimes Financial Advisors (FA) or even Insurance Agents do not recommend life insurance for children just because they only look at the two most popular reasons why people buy life insurance:

  • To replace wages [protecting your family financially] in the event of premature death,
  • Or as a tax-deferred savings vehicle [e.g. Annuities, IUL, etc.]
As an Insurance Agent in South Jersey, I don't focus on those two reasons only when I recommend a Life Insurance product to prospect or an existing client. Before I recommend any product at all I do a need assessment of the family as accurate as I possible can and then based on those factors I recommend a product to fit their needs, peace of mind and budget.

Some Features & Benefits of Life Insurance for Children

When I talk to prospects or existing clients I highlight many more benefits than the two mentioned above, and taking advantage of those features and benefits can guarantee your child or grandchild's future life insurability and lock in their childhood rates for life. Some of them are:
  • Affordable rates that are locked in for life,
  • Face amounts as low as $10,000,
  • Available for ages 0 to 16,
  • Guarantees future life insurability, regardless of the child's future health*
  • Options to completely pay for the policy in 5 or 10 years,
  • Permanent coverage that never expires**
  • Give the gift of Life Insurance to a young person you love marking a special milestone in their life
I personally don't like to focus in negativity, but when it comes to an investment as juvenile life insurance for a child or grandchild it's important to take in consideration facts from respected sources to understand that there is a potential risk of future uninsurability and it's very real.

According to American Diabetes Association about 208,000 Americans under age 20 are estimated to have diagnosed diabetes, approximately 0.25% of that population. - See more at:

According to Centers for Disease Control and Prevention [CDC] 7 Million children had Asthma, that's equal to 1 in 11 children, Asthma is a disease that affects your lungs. It is one of the most common long-term diseases of children. In most cases, we don’t know what causes asthma, and we don’t know how to cure it. We know that if someone in your family has asthma you are more likely to have it.

The realities of childhood cancer worldwide, 175,000 children are diagnosed with cancer each year. 
And in the U.S., more children die of childhood cancer than any other disease, more than AIDS, asthma, cystic fibrosis, congenital anomalies and diabetes combined.

Now, my intention in sharing this few facts (amount many others) it's not to scare anyone or to suggest you buy any life insurance for your child, my intention is to educate you about a very real potential risk that sorrowfully affect all of us equally.

10 Important Reasons for
Juvenile Life Insurance

  1. Guard against possible uninsurability due to future health issues
  2. Lock in low childhood rates for life
  3. Create a financial head start for your child / grandchild
  4. Build cash value from a young age
  5. Help provide life long insurance protection
  6. Generational gifting
  7. Prepare for the unthinkable
  8. Options to increase future insurance coverage with available rider
  9. Help teach financial responsibility
  10. Help provide peace of mind
Buying life insurance as an investment made sense, and today there are countless ways to grow money with relatively low risk taking and give a child an important head start lifelong protection. Everyone wants what's best for their children or grandchildren, why not you?

If a Financial Advisor (FA), Insurance Agent or any other financial assistance representative comes to me telling me I shouldn't buy Life Insurance for my kids because it doesn't make sense I will turn around and run as fast as I can, but that's me... What would you do?

I just bought an Indexed Universal Life (IUL) for my 15 years old child, I'm paying $100/month, with increased death benefit and by the time he reach 50 he would not have to worry about protecting his family at all, not to mention the cash value gained. By the time he reach 65 if there's no Social Security he wouldn't have to worry because the policy will have over 300K death benefit (DB) and over 300K in cash value (CV).

If god give him a blessed life and he reach 85, the increased death benefit would be over 1.3 Million as well as the cash value (CV), so you tell me if it does or doesn't make sense to buy Life Insurance for Children?

If you happen to live in South Jersey and want to learn more...
... for a no cost, no obligation appointment.

 * With the purchase of Guarantee Insurability Benefit Rider.
** As long as premiums are paid and the policy is inforce.

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