Juvenile Life Insurance
Have you ever considered purchasing a life insurance policy on your child or grandchild?
Life insurance for your child is a gift in their future. Not only does the policy accumulate cash value, but more importantly, it protects their insurability. If your child or grandchild has an adverse change in health in the future, they will still be able to have life insurance and can increase their policy without having to go through a medical underwriting process.
Several years ago I helped some clients purchase a life insurance policy on their healthy, newborn son. It was a relatively small policy for $100,000 death benefit and a premium of $30/month. At the age of 7, he was diagnosed with Type 1 diabetes. As a result, this child will have a difficult purchase a policy in adulthood without paying substantially higher premiums. However, the policy has future purchase options which will allow him to purchase additional death benefit amount without any medical questions at certain ages (18, 21, 25, 28, 30) or at a life event (marriage, birth of a child). When he is an adult, he will be able to carry up to $1,000,000 of death benefit to protect his own family without having to go through the underwriting process again. Without this policy, this child would not have been able to purchase an individual policy or would have to pay a significant amount more in premiums.
Juvenile policies tend to be significantly less expensive than adult policies and there is very little medical underwriting. Therefore, it can make a special gift, especially if there is an adverse change in health. Furthermore, the policy accumulates cash on a tax favored basis that is available to the child at a later date.
For more information about juvenile life insurance, contact Set for Life Insurance today!