Policy Types

Why Purchase Life Insurance for Your Child

There are advantages to purchasing permanent life insurance for your children while they are young before major health issues arise. For one, it could save you tons of money.

Life Insurance for Minors Requires Parental Guidance

Replacing lost income is a primary reason people buy life insurance. As a spouse or a parent, you want to be sure that if you die those who are dependent on you will have what they need financially to replace your income, cover outstanding debts, and have the readily available cash to pay for final medical bills and funeral expenses.

So while it's safe to say that most children don't have an income to replace, why should you consider buying a life insurance policy for a minor? The following are three advantages to purchasing permanent life insurance for your children while they are still young.

1. Life insurance for minors is affordable

Typically, the older you are the more expensive life insurance becomes. Take advantage of a minor's favorable age, health, and lifestyle. Input these parameters into the insurance underwriting equation and circle the result of low premiums for just pennies on the dollar.

You can lock in low childhood rates that won't ever increase, unless your child decides to raise the policy's coverage limit by taking advantage of a guaranteed insurability rider (if offered). This allows them to increase coverage at specific intervals (either age or policy year options) at an affordable price.

2. Insurance for Kids

The future is unpredictable. Disability and chronic illness aren't something we can plan for. Pre-existing conditions and family health history can not only increase monthly insurance premiums, but also make it difficult to get coverage initially.

However, the future looks bright for insurability when you act early. A minor can benefit from having guaranteed coverage later in life regardless of unexpected health changes.

*Not all term policies or life insurance companies offer a conversion rider.

3. Life insurance gift

Birthdays before the age of 18 are filled with toys, games, and gadgets. These items have a shelf life. A life insurance policy is immune to both wear and disinterest. In fact, outgrowing a policy is impossible.

Getting your child started with a permanent life insurance policy can be an affordable and wise gift for your legacy, providing a safety net for your child, future son- or daughter-in-law, and your grandchildren.

Getting the life insurance coverage you need … today

As you age, it gets more expensive to buy life insurance. Moreover, certain health conditions can make premiums increase - or worse, make it difficult to qualify for life insurance coverage at all. For the same price of a weekly specialty coffee drink, you'd be surprised at how much term coverage you can easily afford. If you have named a minor child as beneficiary, we encourage you to contact your financial adviser or estate-planner to ensure the death benefit proceeds are properly protected and used for the child's benefit in your absence.

For more information on types of life insurance, visit our learning center.

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This article is a high-level summary of things to consider when purchasing life insurance. The information presented is for information and educational purposes and meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective or its subsidiaries.

Neither Protective life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax-related decisions. For information about Protective life and its products and services, visit www.protective.com.

Life Insurance for Minors

Buying life insurance for your minor child is securing future insurability for them. Life is unpredictable and so are future health conditions that could affect their ability to obtain affordable life insurance at a later point in their life. The affordability is appealing for many parents and knowing the policy is in force for their children as they grow can provide peace of mind. This article explores several key considerations for why life insurance for minors is worthy of consideration. For more information, visit our learning center.