5 Things to Know About Getting Life Insurance for Your Child

We spend so much time talking about the reasons adults need life insurance (income protection, covering funeral costs and so on) that it’s easy to forget why it may be a good idea for you to insure your children as well.

When we think about it, we reason that our kids aren’t contributing to the household budget—in fact, anyone with kids knows that raising them takes a lot out of that budget! But getting a permanent life insurance policy for a child can offer financial advantages for them later in life (in addition to the death benefit).

So before you find yourself caught up in internet debates over how to get your baby to sleep or what kind of diapers to use (or if you’ve already been through that and are dreading the next round of parenting arguments), here are five things to know about buying life insurance for your child:

1. Life insurance policies “grow up” too. A great reason to invest in juvenile life insurance is to ensure that your children are covered from the get-go, and as they get older, may be able to take advantage of riders that allow them to expand their coverage at a guaranteed rate without any question about their respective health. People’s health changes, including children’s, and having a policy in place can ensure they’ll have the coverage they need, despite health changes.

2. It creates a sensible foundation: While there are tax-advantaged vehicles for saving for retirement and college, that’s not necessarily the case for other major expenses that young adults face such as[…]

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