Buy life insurance for your child
The arrival of a child into your family is an event that brings about a lot of changes on a daily basis. Because a newborn baby is a whole person, its arrival also brings more practical considerations that should not be overlooked, including financial protection. In the past, parents in Quebec took out dual-function products: permanent life insurance that also served as savings. Thus, the child's policy could later be exchanged for its cash surrender value. However, no matter how it is done, one fact remains, a child must be protected. Here are the basic questions to ask yourself when it comes to child life insurance.
Why insure a child?
A child is a vulnerable and at risk person just like any other human being. It is therefore not immune to serious illness or sudden death. Who would be responsible for the funeral costs in the event of death? The parents. Unless the child is insured.
From another perspective, the death of a child is one of the worst things that can happen. Completely devastated, the parents may not be able to return to work for several months. The insurance money would therefore help them support themselves during this time.
When to insure a child?
As with any person, the ideal is to insure a child when he is in good health. Although there is no ideal age, it is a good idea to insure a baby from the first week of life. In doing so, you thus increase the protection of the whole family. In this sense, if little sisters or brothers join the family, they will also benefit from this protection.
If your child already has serious health problems, from birth, it is suggested that you wait until their condition has returned to normal, so wait until they are insurable.
How to insure a child?
There are different ways to protect your child financially. But one fact remains universal: the younger the insured person, the less expensive the insurance. It would therefore be to your advantage to take out insurance very early in the child's life.
Some insurers offer insurance for newborn babies, with free coverage during the child's first year of life.
It is also possible to take out, on behalf of the child, prepaid life insurance or serious accident insurance (illness, disability), in addition to cover which will take care of university studies.
Some would argue, however, that the best option is the 20-year term policy, for several reasons. The insurance is inexpensive and when it expires, the child can decide whether they want to purchase their own insurance.
Who can take out life insurance for a child?
Of course, parents are in the best position to protect their child, including financially. But grandparents can do it too. Imagine the nice gift that could benefit not only parents but children as well: life insurance that is used to financially secure the child, but that parents would not need to budget for.
By offering a life insurance policy, the child, at age 20, will have full coverage already paid for.
How much does life insurance cost for a child?
Before taking out life insurance for your child, be sure to assess your real needs and assess how much you are willing to pay for this, considering that in Quebec, funerals can very easily amount to 10,000. $ or more.
So, for a one-year-old boy, permanent life insurance of $ 30,000 might cost about $ 120 a year, while 20-year term life insurance of $ 250,000 would cost $ 230 a year. It's up to you to decide which option is right for you.
If you have any questions regarding children's life insurance or insurance more general, do not hesitate to contact the InfoPrimes team, who will answer them with the utmost professionalism.
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