The most tragic thought or occurrence for a parent is the death of their child.
Should you purchase life insurance for your child – yes I am big believer in purchasing life insurance for children! However, not with the thought of their death, but rather for the thought of their future!
The top three reasons to purchase life insurance for your child are:
1. To protect their insurability. By purchasing life insurance, with a Guaranteed Insurability Rider, should your child’s health change in their growing years, you will have protected their insurability and their ability to have life insurance coverage in place. This is especially important when there are hereditary health issues in the family.
2. Funding Vehicle – A whole life participating policy, can be used to accumulate savings to fund an education, use towards a down payment on their first home, or perhaps money to start their own business.
3. Legacy – For grandparents who have a higher net worth, this can be a way to transfer wealth on a tax free basis.
For grandparents who want to leave a legacy, a whole life participating policy taken out on a young grandchild, with a limited pay feature, can ultimately remain in force and be there to help out your grandchild, even if you are no longer here.
Dividends and growth can vary between companies for whole life insurance policies. I would be happy to show you an illustration for the company I believe has the best juvenile life insurance policy available.