Why You Should Think About Getting Your Child Life Insurance

by | Aug 26, 2022 | Uncategorized

There are two main reasons to think about taking out an insurance policy on life for your child:

Plan for the Impossible

Nobody wants to think of losing their child. However, having life insurance can assist in covering funeral expenses and let you be away from work to mourn.

Assuring Your Child’s Insurance

Even if your child is in good condition, future health issues could make it more difficult for them to obtain life insurance eventually. In the meantime, getting them a policy might allow them to change to an adult insurance policy without having a medical examination, but with a price dependent on when they were young and healthier.

Benefits of Buying the Life Insurance Policy for Your Kid

  • The insurance cost may be lower due to your child’s health and early age.
  • It can aid in securing your child’s financial future.
  • If you buy an insurance policy with a cash value that your child can use, you will give them a long time to accumulate.

Life Insurance Policies of Various Types for Children

Parents generally opt for permanent and term life insurance for their children.

Term Life Insurance

It offers the most affordable insurance coverage for a certain period. It can be provided as a stand-alone insurance policy or as a rider for children to the term life insurance policy of a parent’s policy.

Permanent Life Insurance

Permanent life insurance costs more than term insurance because of its cash-value component. It also includes features that assist in growing the amount of money you have in your insurance policy over time. The money is available at any time during the lifetime of your child. Once your child is 25 years old, the procedure is tax-free for them. The child may later use the policy’s cash worth to supplement their retirement income or lay the groundwork for a great financial legacy. Suppose you buy an insurance policy that is permanent for your kid earlier in life. In that case, they’ll get covered regardless of future medical issues.

Ottawa Life Insurance can meet all your personal and corporate insurance coverage needs. Contact us at (613) 454-1424 or email info@ottawa-lifeinsurance.ca for further details.