Many parents look at their children and see young, healthy boys and girls. They don’t think of outliving their children or of needing life insurance protection for their children.
The truth is accidents do happen, and each year some children become terminally ill. When a child dies, life insurance’s death benefit can alleviate the family’s added financial burden associated with paying funeral and related medical bills.
But don’t think of life insurance for children as only a death benefit protection. A child can realize living benefits too.
When you purchase life insurance for a child, you can protect the child’s future insurability. And remember, life insurance premiums are based partly on the insured’s age and health condition. Purchasing permanent life insurance for a young, healthy child can mean lower insurance premiums throughout the child’s life.
If you purchase life insurance that accumulates a cash value, your child can borrow against this cash value later in life to help fund a college education, put a down payment on a home or start a business.
Gregory A. Boyce is a registered representative. Securities offered through MWA Financial Services Inc., a wholly owned subsidiary of Modern Woodmen of America, 1701 1st Avenue, Rock Island, IL 61201, 309-558-3100. Member: NASD, SIPC.