Child insurance is a subject that is often avoided and is very sensitive in itself. However, it may make sense from a financial standpoint, depending on your family’s current situation.

In general, life insurance is used to protect a person’s family in the event of eternal death. If the person who earns the most dies, how will you replace the lost income? In most cases, young couples do not have reserves large enough to support this loss, and without life insurance to provide a “safety net,” the spouse may be forced to sell the home they both worked so hard for. hard and experience a big drop in living standards. .

When looking at your family’s life insurance needs, the first thing you should do is insure the primary earners. This is self-explanatory, since in most cases the children do not earn an income. While the death of a child would have an unquantifiable emotional impact, it would not have a significant financial impact. However, assuming all of your major financial foundations are well covered, insuring a child can make sense and can also offer many benefits, especially in the long run.

For example, insuring a child at a young age ensures that he or she has insurance now and has the ability to obtain insurance in the future. This will protect the child’s ability to obtain insurance against future health problems, such as asthma or cancer; it will also protect the child against high-risk occupations such as being a firefighter or a pilot. Most life insurance policies give you the option to add a guaranteed insurability rider that allows the child to upgrade her insurance in the future, without the need for a medical exam. This is a key point and should not be overlooked.

Permanent policies also allow your child to be insured at very favorable rates and can be paid off over a limited number of years. The policy can build cash value that is available in case of an emergency or to help supplement the child’s retirement income.

If you have hereditary health problems, insuring your child is of additional importance, as it creates a safety net against the child developing health problems in the future. A child who finally has a family of their own may have developed health problems in the future and, as a result, life insurance policies could be very difficult or impossible to obtain or would cost extra.