Most parents never consider taking out a life insurance policy on their children. However, doing so can have a number of benefits. Here are three reasons to take out a whole life policy on your child.
Reason #1: To Cover Any (Hopefully Unnecessary) Final Expenses
Let’s go ahead and get this one out of the way first. One reason to take out a whole life policy on your child is to help pay for any final expenses should the unimaginable happen and your child dies. Funerals today can cost in upwards of $10,000 or more; a financial figure most working families do not have sitting around. Plus, the time a grieving parent will spend out of work while they cope with the loss of a child will have a huge financial impact on the family. By having a whole life policy in place, the entire family is financially covered if tragedy strikes.
Reason #2: Future Insurability
Another reason to consider taking out a whole life policy on your child is their future insurability. There are a number of reasons why life insurance companies deny coverage for adults. These can include working in a dangerous injury, partaking in extreme hobbies, or even a pre-existing medical condition. The benefit to purchasing a whole life policy for your child is that they retain insurability as long as the policy premiums are paid.
Reason #3: The Cost is Minimal
Another reason to take out a whole life policy on your child is that the cost is minimal. For only a few dollars a month you are covering them for the rest of their lifetime (hence, the term whole life). It doesn’t matter if they live until they are old and gray, the policy remains in force. There are also certain tax benefits and the ability to borrow against the policy in time.
To learn more about taking out a whole life policy in Maryland, please contact your local agent today.
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