Is life insurance a good financial tool for your child’s future? Learn about the important factors you should consider when deciding to purchase a policy.
Is a Life Insurance Plan a Good Financial Tool For Your Child?
If you’re a parent, grandparent, or legal guardian of a child, you may have already started preparing for their financial future, such as setting up a savings account or college fund. But what about life insurance? While most people think life insurance’s only purpose is to provide income to support dependents, it’s also an excellent financial tool to include in your child’s financial plan. The insurance experts at Media Benefits Insurance Services* share these factors to help you make the best decision regarding life insurance for your child.
Lower Insurance Premiums as an Adult
Monthly premium payments for life insurance are based on the health and age of the person when taking the policy. If you purchase a life insurance policy when your child is young and healthy, their premiums will likely be significantly lower than that of an adult. Your child will be able to keep the same policy, paying a lower rate than if they took the policy as an adult.
Guaranteed Coverage as They Age
If your child were to develop serious medical conditions as an adult, they may be denied life insurance coverage later in life. Purchasing a policy when your child is young and healthy guarantees they will have life insurance as an adult. Additionally, when your child turns 21, they will have the option to keep their policy or take the cash value, which can be a nice nest egg as they start their adult life.
Coverage Can Help When Financial Troubles Hit
Every time you make a premium payment on a life insurance policy, you are building cash value, which can be extremely helpful if you run into financial issues, such as:
- You can borrow against the cash value of the policy as long as you have been making the premium payments. And interest rates are around 8%, lower than a personal loan.
- A life insurance policy can provide you with income if you are unable to work due to the loss of a child. While no one wants to think about the tragedy of losing a child, the policy will give you peace of mind, knowing you can pay your bill while you are grieving.
Let Media Benefits Insurance Services Help You Select The Right Policy Today!
When deciding whether to purchase a life insurance policy for your child, you must balance the potential benefits with the risks of not having a policy. And there are many affordable life insurance options available. Let our knowledgeable Media Benefits Insurance Services agents help you find the best option. Contact any one of our agents to schedule an appointment.
Cynthia Padilla, Insurance Agent, MBIS (Hollywood Branch)
Maria Okafor, Insurance Agent, MBIS (Burbank Branch)
Monique Garcia, Insurance Agent, MBIS (Culver City Branch)
Media Benefits Insurance Services
6735 Forest Lawn Dr., Hollywood, CA 90068