Selecting life insurance for your child

Most people, when asked about what the most important thing in their lives is, will answer without any hesitation that their family holds the top spot in their hearts. In the heart of this, the well-being and future of the children is top priority.

Life insurance - an important discussion

Contrary to the morbid pictures critics of children’s life insurance paint, life insurance is not just about death and sickness. It is also about the future and preparing for it. It is about getting ready for unexpected expenses brought about by major changes in your life.

A convenient feature life insurance (that you take out for yourself) is the option to add children to the policy. This ensures every family member is protected should something unfortunate happen.

Is children’s life insurance essential for your family?

It's understandable if discussing life insurance for your children leaves a bad taste to your mouth. However, there are a few reasons why it is never a bad idea to purchase life insurance for your children.

  • Children cover can be added on to your cover. Most brands will include or give you the option of adding children to your policy.

  • Reduces financial burdens incurred by sickness or accidents. It might be a depressing thought, but being sick and getting involved in an accident is a probability in life. It could happen to anyone and no one is exempt, not even your children. This could mean extra medical care and purchasing medical equipment needed for rehabilitation - a financial burden can be relieved if your child is properly covered.

  • Replaces lost income. When your child’s sickness becomes longer than you expected and your presence is called for, there is also the possibility that you or your spouse will take a leave of absence from work for an indefinite period of time if both of you are working. No work, as everybody is aware of, generally means no income. Having children’s life insurance cover the added medical expenses will ease you of your fears how to sustain your daily expenses.

  • Takes care of the final expenses. Death is scary but is also a reality of life. The death of your child can cause you great emotional and financial stress. It might be difficult to deal with the loss emotionally, but there is something you can do about it financially. Dealing with half of the problem is a big help – a priceless one that you cannot ignore.

  • With the rising costs on every commodity, funeral expenses are also always on the rise - If you are not prepared for it, you might find yourself being in debt by just burying your child.

  • Can be used as collateral when your child takes out a mortgage. Some life insurance policies can be used as collateral when you want to secure a loan. This can be helpful to your children in the future when they are applying for a loan.

How to purchase life insurance for your children

Children’s life insurance is basically to cover your child for sickness and accidents. Most insurance providers offer child insurance as an additional feature when you get your own life insurance.

Getting life insurance for your kids is easier because most insurance providers do not require medical or blood tests. Moreover, children’s life insurance is much cheaper than adult insurance because of the fact that kids have longer life expectancy. Children eligible for this type of insurance are between the ages of 2 and 17 and a citizen of Australia.

So how long does the policy last?

Children’s life insurance benefits automatically expire when your child turns 21. However, an option to convert this into an adult life insurance policy is given by most insurance providers when your child reaches a certain age which is usually at 18 years old.

Children’s life insurance is never a liability even if your reason for getting it brings gloomy images to mind. However, there is no such thing as gloomy when you think of the future in all its reality. Furthermore, there is no such thing as delay when it comes to your children and their future.

[Source: Selecting life insurance for your child.]

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