Children's Life Insurance

There are a number of reasons why purchasing life insurance on a child can make sense. For example, the proceeds from a child's life insurance policy can provide financial support for the payment of a funeral and other final expenses, such as uninsured hospital and / or medical bills.

But there are other ways in which life insurance for a child can be a beneficial financial tool, as well. Many people use permanent life insurance - the type of policy that offers a death benefit and cash value - as a college savings option.

Because life insurance cash value is allowed to grow on a tax-deferred basis, these funds can compound - with a guaranteed rate of interest - over time. Plus, unlike traditional 529 college savings plans, the money that is in a life insurance policy is not required to be used solely for education-related expenses in order to maintain its tax-advantaged status.

Because of that, the funds that are in a permanent life insurance policy could also be used for other future needs by the child, such as for a down payment on a first home and / or the purchase of a vehicle.

In addition, a permanent life insurance policy on the life of a child can assure him or her that they will have protection for the remainder of their lifetime (provided that the premium continues to be paid). This can be particularly advantageous if the child contracts an adverse health condition in the future that may otherwise deem them to be uninsurable.

There are many different options that are available today for covering a child with life insurance. When purchasing a child's life insurance policy, however, it is important to make sure that the coverage is obtained from a reputable life insurance carrier.

Working with an independent insurance agent can allow you the ability to shop and compare coverage and premium rates from numerous insurers, and from there to choose the plan that works the best for you and your specific needs.

Other Products:

• Term Life Insurance Term life insurance offers an affordable way to obtain the protection that you need for a set period of time. This type of insurance coverage can provide way to ensure that the balance of a home mortgage is paid for survivors, and / or that other financial needs are met in case of the unexpected.
• Whole Life Insurance Whole life insurance is a form of permanent life insurance coverage that offers a fixed amount of protection, as well as a cash value component where the funds inside the policy can grow and compound on a tax-deferred basis.
• No Medical Exam Life Insurance If you have certain medical issues, or you work in an occupation that is considered to be "risky," then a no medical exam life insurance policy may provide you with an avenue to obtain the protection you need for loved ones, but without having to undergo many of the traditional life insurance underwriting parameters.
• Universal Life Insurance Universal life insurance offers financial protection for loved ones and survivors, as well as a way to build up cash value. These policies are considered to be quite flexible, as the policy holder can typically alter the timing and the amount of the premium payment to meet their personal needs.
• Children's Life Insurance While nobody ever wants to consider the passing of a child, unfortunately unanticipated accidents and illness can occur. Children's life insurance can provide financial protection during an already difficult time. But this type of coverage can also be used in other ways, too.
• Guaranteed Issue A guaranteed issue life insurance policy can provide those who have certain health issues - including some serious conditions - to obtain the protection that they need...even if they have been turned down in the past for traditionally underwritten coverage.