Any parent will attest, when it comes to their children, they want only the best for them. As each of our situations vary, what this looks like will of course differ from family to family and child to child.
So when it comes to the question of whether your children need life insurance, the answer isn’t always absolute one way or another. Individual circumstances will influence the relevance of a policy, so it’s important to understand what child life insurance is and the benefits a policy will offer.
Life insurance is typically held to protect the income and financial security of those with dependents who would be affected by a sudden change in circumstances. As children rarely have dependents or financial obligations (perhaps only as a child star) it can be argued there is little need for them to have life insurance.
That said, with the uncertainty of life, child life insurance offers a range of benefits should a child die, develop a terminal illness or suffer from a particular medical condition. The main benefit is financial, with a lump sum payment going to a family in the event of a claim.
This payment is invaluable to ease financial stress, covering medial expenses, loss of income if the parent needs to take time off work and other related costs.
Importantly, child life insurance can also provide cover for illness and disease that develop in late childhood/early adulthood that would rule out cover later in life. This includes chronic illness and diseases such as type 1 diabetes, epilepsy and cancer.
The purchase of child life insurance is also comparatively easier than other forms of insurance, and is simply added to an existing life insurance policy.
As parents it’s important to assess all options to ensure you provide the best for your children. Beyond the necessities of education, proper nutrition, healthcare and quality of life, there are other ways to safeguard against life’s unexpected events. Life insurance for your child can provide that extra level of comfort that makes certain your child will be supported no matter what circumstances lay ahead.
If life insurance for your child is something you are considering, your best course of action is to speak to your financial adviser, as this information is general and does not take into account financial objectives, circumstances or needs.
What are the reasons you would consider taking out life insurance for your children?