Globe Life: Life Insurance for Adults or Children

The purchase of a whole life insurance policy on a child can be compared to using a seatbelt for your children. We never know what will happen, and it is comforting to know you are doing your best to provide your child with protection against an unforeseen accident. As good parents, you make sure your children are securely strapped into their safety seats. In the same manner, the purchase of whole life insurance for your children provides a sense of security. Of course, the purchase of life insurance for children is an emotional action, as you realize the money cannot replace the value of the loss of your child; however, tragedies do occur, and amid the enduring shock and grief, you may not have the liquid assets you need to pay the funeral expenses. It could be a financial hardship if you are forced to tap into your savings to pay for the funeral and burial expenses. At the very least, a whole life insurance policy on a child can protect you from the added stress of having to borrow money while enduring unimaginable emotional devastation.

Of course, you can still be considered a good parent without making that type of purchase; however, other parents realize their children will benefit from the investment because they can use the money to help defray the burden of education expenses. Furthermore, these same parents know that a whole life policy can be a great teaching tool, to be used when their children reach

In fact, the purchase of a whole life insurance policy for a child is also a great gift idea because it offers both a financial head start and financial protection for the parents. This type of policy accumulates cash value. Therefore, if a family member contributes a relatively small amount of money towards the purchase of a whole life policy on a toddler, someday the beneficiary will consider the matured policy to be a valued gift that provides protection. For example, in the event your grown child works in a hazardous occupation, engages in dangerous activities, or becomes uninsurable for any medical reason, his or her only option would be to pay for an expensive high-risk policy. Try to visualize the fact that someday your small children will have their own families. Now think what it will mean when they realize that the policy you had the foresight to purchase when they were children is now serving as protection for their own families.

Some experts say that buying a life insurance policy for a child is not a sound financial move. These experts argue that insuring your child is not necessary because children are not assets that need protection. They assert that the only family member needing insurance is the provider; however, this is not true. Besides the obvious financial protection gained with the purchase of a whole life policy for your children, by choosing to apply the protection principle of "seat belts," your children will grow up knowing that your practical choices gave them a financial head start in life. After all, none of us really know what is in our future, and at the very least, we should be financially prepared for the unknown.

Read more articles