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Life Insurance for Children- A multifaceted gift

Let’s be honest, the thought of losing a child makes anyone feel uneasy. If the unimaginable happens, life insurance coverage for that child gives the family time to grieve, funds to pay for burial/memorial, and address any other final expenses. But there can be so much more to purchasing life insurance than the death benefit.


I, Amanda, am a huge advocate for writing policies on young children. If you have children and I haven't asked you about life insurance for them yet, don't worry, I will! Some may think that my motivation is of a morbid nature, but that's not true at all. I have seen the unique advantages of purchasing a life insurance policy for a young child.


When I was less than a year old, my incredibly smart parents purchased a life insurance policy for me. A policy was put into place and my insurability was locked into place. This ensured that if the unfortunate happened, my parents would have had the funds to pay for not only my funeral, but also provide them with financial means to be off work during their grief journey.


It also locked in my insurability. Luckily, I didn't have any major chronic illnesses sneak up on me during my youth, but if something had snuck up on me, it wouldn't have effected my policy as my insurability was locked in years prior.




Family is the most precious thing we have in this world. Life insurance can help protect them financially- even if we are not here
Family is the most precious thing we have in this world. Life insurance can help protect them financially- even if we are not here

Fast forward 30ish years and I was now married with three children. Unfortunately, the original policy didn't feel like enough coverage for my needs. I was able to work with my life insurance company to increase my death benefit with limited questions asked. And one of the best parts about it? While my premium increased at the time that I increased by death benefit, it is still a FRACTION of the price I would pay to get a policy for me today!




Universal and whole life insurance products can also be used for their cash values. By purchasing a policy young, the cash value has ample time to grow in the policy with each passing year. I have seen clients use the cash value for many different scenarios including paying for college educations, as collateral for loans and even to help pay future premiums.


Proud grandparents with their oldest granddaughter
Proud grandparents with their oldest granddaughter

Finally, one of the coolest things about my life insurance policy now is that the people it will likely help the most is my children. Assuming that I don't pass away while my children are under 18, the money from the life insurance will surpass a generation and go to my children. How cool is that? The policy was established by my parents when I was a baby--- long before my children were even a thought. And now it may be one of the greatest financial gifts that my parents (my children's grandparents) give to my children.



In summary, there are multiple benefits of insuring a child including:

• Establishing a base of life insurance

• Potential for tax-deferred cash value growth

• Protection of future insurability through riders and conversions

• Creation of generational wealth

• Tool for financial and budgeting education


Catholic Financial Life offers multiple permanent plans that are excellent for children. Permanent plans purchased on children ages 0-17 automatically include the Juvenile Purchase Option for free!


Consider purchasing a life insurance policy for your child or grandchild. A gift that can meet the needs as life changes. A gift that can transcend generations—the gift of Life Insurance!


 
 
 

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