Life insurance is a must have, but is this valid only for adults? People seldom think of a life insurance for their child since for them, he is always a small kid who is taken care of in all aspects. If he is ill, parents put in best efforts to treat him. If he needs new books, clothes, etc parents will buy him everything. So why does he need to have a life insurance?
Life insurance is associated with death and that is one thing which any parent will not like to think for his child. Nobody depends on him and thus, he does not need insurance. But this might not always be true.
Term Insurance for Children
A term life policy is valid for a specific time period. It is a good start since the premium plans are too low for children. It gives coverage for the duration it is bought. However, parents with a right perspective might take it differently as an option for the future.
Benefiting From the Convertible Feature
The policy bought at cheaper rates can be converted to whole life insurance, once the initial expires. This will ensure that the child has insurance for a lifetime, most of which is paid by parents at very low rates. The convertible feature can help save a lot of money since it does not ask for a medical examination when converted. Later on, the child will just need to start paying the premiums as soon as he begins his professional life.
A term life insurance bought for say 30 years will cover the whole of his school and college life. In the meantime, if he develops some lifestyle habits like alcohol consumption or smoking, it increases the cost of insurance if he opts to buy one at that time.
Everyone develops certain health issues as they grow up. This means that in future, if the child has developed health issues and wants to buy a life insurance, it will mean he will have to pay higher premiums. But with the convertible term life insurance, he will have an option of going for whole life insurance with no questions asked and no medical tests. This will ensure that the rates he will have to pay will be lower.
A Parent’s Gift
Parents who think critically will surely make out the benefits they will give the child by opting for a convertible term life policy. Thus, they might not hesitate in buying a policy and starting at very low rates and then pass it on to the child once he is financially capable of handling the premium payments.
Buying a Term Insurance for Child
When a parent decides to buy the term insurance for his child, he will need to follow all the procedures as when buying a term insurance for an adult. The only thing he needs to keep in mind is the future cost when the policy is converted to whole life insurance.
A life insurance for a child has its own benefits if seen from a different point of view by parents. Visit TermLife-Insurance.com and get more information about convertible term insurance for children.