One Size Fits One (05-23-16)

Insurance needs are as wide and varied as the people who need them beginning from our first days on Earth until our last. As we move through each generational period of our lives, it is important for us to look at the role of insurance in order to make it work for us.

When babies are born, aside from health insurance, most people don’t think about the need or desire for any other type of insurance for these new lives. However, buying a life insurance policy on a child is becoming more common to do during their first year of life for multiple reasons:

  • Premium costs are low
  • Health conditions are favorable
  • Policy can be set to earn cash value

Another option on some policies is to pay the premium for a set number of years thus being able to turn over a paid-up policy to the insured. This provides options to them as they move through their generational years.

Tragic accidents can happen to our youngest generation. Life insurance policies can be used to cover funeral expenses and celebration of life events. But, if the funds aren’t needed to cover those unexpected costs, why not use the policy to set up a legacy in your child’s name? A donation to a school for scholarships or to a charity ensures that the life you held so dear will never be forgotten.

Child riders are often added to a parent’s life insurance policy. These are great in that the cost is very low and coverage is there if needed. It is important to know the contract limitations.  Most times this type of coverage will terminate when the child turns 25. In this era where many young people are still in college at age 25, loss of coverage could be problematic if they or their parents have incurred medical conditions that would negatively affect underwriting.

If the idea of a life insurance policy on your child is uncomfortable to you, you’re not alone. Don’t look at it as planning for the worst case scenario. You are planning for their future and giving them the best tools you can to be successful.

Join us over the next few months as we explore the insurance needs of each generation.

If you have any questions regarding your insurance, please Contact Marcia today.


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