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#WealthTipoftheDay: 3 Reasons Why Your Kids Should Get Life Insurance

#WealthTipoftheDay: 3 Reasons Why Your Kids Should Get Life Insurance

September 27, 2021

We know what you’re thinking… life insurance for kids?!  Yes, you’re reading that right!  Depending on your financial goals and situation, this is an option for your financial plan.  Here are 3 reasons why you may consider getting life insurance for your kiddos:

Premiums are really low.

Life insurance eligibility is largely based on age and health.  Generally, the younger you are, the less likely it is you have medical or health issues.  Unless there are pre-existing medical conditions, babies and kids are likely to have the lowest premiums and more likely to get approved quickly than adults who wait to get life insurance.

You can use the cash value for future goals .

If it makes sense for your family's goals and situation, you have the ability to build cash value in a permanent policy that can potentially be used for college or other expenses for your child down the road.  Keep in mind that there other important factors to consider when taking cash value from your life insurance; you should consult with your wealth advisor for implications of cash value withdrawals.

You can build a foundation of generational wealth. 

Some families start building a financial plan for their kids in hopes to create generational wealth for them.  For example, a life insurance plan for your child can be the foundation of coverage for when your child becomes an adult.  At that point, if they have financial obligations, such as student loans, or a family of their own, they have an initial death benefit to help protect their wealth.

One important consideration when it comes to juvenile life insurance plans is that you as the parent should have adequate life insurance coverage on yourself before starting one for your child.  It serves no benefit in protecting your family if you don't have have the proper plan in place for yourself.

Wondering if life insurance for your kid(s) makes sense for your family’s situation?  Schedule your Discovery Call with us today to chat with our wealth advisor: Schedule a Meeting with Our Team (