Why Life Insurance for a Child (or Grandchild) Is a Good Idea

If there has recently been a baby or grandchild added to your family it can be a reminder of just how fast time passes. This is particularly true for grandparents who have seen their own children grow far too quickly. Days soon become months, months turn into years and, well, it goes on and on.

So why should this inspire you to buy life insurance for a child or grandchild? It is because it is a time to remind ourselves the future will be here before you know it. It is time to consider how life insurance can play an important part in the future of that child.

Let’s start with the fact that it will never be cheaper to buy life insurance than when a child is a baby. In fact, depending on the type of insurance that is purchased, the premium can be locked in at the child’s current age for the rest of their life.

Buying life insurance on a healthy baby also insures that no matter what health issues may lie ahead for that child, life insurance coverage is guaranteed. As long as premiums are maintained, coverage of a whole life policy will remain intact.

Perhaps one of the best reasons to purchase life insurance on a child is that your independent insurance agent can help you choose a policy that will grow in value as the years pass. A whole life or permanent insurance policy can build value over time. Depending on the amount and type of policy, this can be significant. Most importantly, a life insurance policy purchased on a young healthy baby guarantees coverage for them in the event they become uninsurable as they get older. It can help them purchase their first car, help pay for college or even contribute to wedding expenses. If a policy is maintained through their life, it can become a foundational piece of their retirement plan. It can all start with a call to your independent insurance agent.

Toys will be bought, used, broken or sold. Clothes will be outgrown, passed along or given away. Money can go into and out of a savings account. A life insurance policy that builds equity, however, will stand the test of time, time that is unstoppable.

If you are a recent parent or grandparent, we encourage you to contact us to discuss the options available for your child or grandchild. A decision today can make a remarkable difference in a future that will be here all too soon.