subject: Why Shall Child Life Insurance Be Taken? [print this page] Life insurance has traditionally been associated with the primary bread-earner for the family. In order to cover for his untimely death, the life insurance policy provides the much needed financial resources to the family to carry on with the life. Many people hold that to be prudent but, with the same logic, might question the wisdom behind getting the child life insurance. It is true that where funds are limited, insurance shall be prioritized but if all priorities have been met, then getting an insurance plan for the child is very beneficial.
1. For one, the insurance rates are lower for children than the adults. So, by paying small monthly amounts the person secures the future of his child. By the time the child grows up, the policy will mature and the funds can be used as per his needs.
2. Secondly, it ensures that the child is protected against any future health related problems. In case there is a family history of some type of diseases, then the child is at an increased risk of attaining those diseases. So, the child must be insured at an early age. Otherwise, if the child gets disease later on in life the insurance may not be possible.
3. Thirdly, the policy will cover the child for any risky occupation that he/she may have to do in future. So, if the child wants to be a pilot or scuba diver, the policy taken earlier may not consider these risk factors.
4. Another important reason to have it is the satisfaction of the parents or grandparents. Having an insurance policy for child might be taken as another saving which can provide relief in the future.
The child life insurance policies usually have a rider of guaranteed insurability. In this the insurance company offers to provide insurance again after the current policy period is over. This new insurance does not require any new medical check-up. That the child life insurance shall not be taken because the child is more likely to survive is wrong thought. It shall be presumed that meager amounts saved on monthly basis can be of great help for the future.
by: Addy Smith
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