Is It Wise To Get A Child Life Insurance?

By Author: J.J. Yong
Total Articles: 963
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Do you ever considered buying life insurance for your child? The best reason to have a child insured is in the event of their death. The child insurance policy will cover their final expenses, such as their medical bills, funeral and cemetery costs. However some insurance companies claim that child life insurance helps to protect your child's future.

Many insurance companies also offer riders for children as a rider to their parents' Insurance coverage. And also there are many types of insurance policies which allow the children to "change" their desired types of Insurance after age 18.

An Insurance trust is useful for the case of under-age children. This is to protect the benefits which you have setup for your children by making sure that they are used the way which you have planned for. You can also appoint a guardian to take care of the trust after your death if your children have not reached their authorized age at that time.

It is very critical to ensure that your trust is made in writing, better still if it is witnessed by a legal lawyer; the Insurance company should be made aware, as well as the allotted ...
... trustee, of the arrangements of the trust.

If you have a special needs child who is unable to support and care for themselves, a special needs trust is necessary to be set up in their name using your life insurance funds to pay for their care. With the special needs trust, the trustee can pay for everything except for essentials, such as food, clothing, shelter and medication, which should be covered by Social Security instead.

However many insurance companies believe that a child insurance is not as important as an adult insurance because children cannot generate income and also statistics shows that majority of children do not die prematurely, before age 18.

But there are some key benefits which I wish to share here as far as child insurance plan goes;

a. Child insurance plan is very affordable as the premium is very cheap
b. Most of the insurance company offered coverage through their adulthood
c. The child Insurance is allowed to be converted into adult life insurance after the age of 21 within the same insurance company
d. Child Insurance is especially beneficial if you are aware of any genetic or medical conditions which would later manifest into their childhood, which would make the purchase of an insurance very difficult to be obtained later on.
e. Getting a child life insurance policy helps to ensure the financial security of your child's future.

So, whether getting a child insurance is a wise decision or otherwise is very much depends on the individual and also the situation and age of your child.
For more information about life insurance information and term life insurance quote, visit LifeInsuranceEssentials.com.