Do your kids need life insurance coverage?
As a parent, you want to do everything you can to protect your children. This is why some parents ask whether they should secure life insurance coverage for their children. While this is a divisive topic among insurance experts, most agree that life insurance for your kids should not be a financial priority. However, if you have some extra capital lying around, here are some of the things you need to consider before deciding to invest in life insurance for your kids.
It Covers Funeral Costs
If your child were to die unexpectedly, this tragedy would turn your life upside down. The last thing that you would want to think about is how you were going to pay for your child’s funeral and burial. If you have a life insurance policy for your child, it would take care of this cost for you.
That being said, the odds of your child dying at such a young age is extremely unlikely. With modern medicine and parental safety education resources now available, children are healthier and safer than ever. Rather than spending money on life insurance, you should save it for emergency medical expenses or other types of crises.
It Affects Their Ability to Secure Life Insurance Later in Life
If your child develops a medical condition while they are young, this can make it difficult for them to secure life insurance later in life. By securing life insurance for them now, you can ensure that they have some coverage and makes it easier for them to secure additional coverage down the line.
However, the vast majority of twenty and thirty-year-olds do not experience any trouble securing life insurance coverage. Additionally, adults that have life insurance policies from when they were children are limited in the amount of coverage they can secure. Generally, coverage amounts are limited to a multiple of the original policy amount. Oftentimes, this total is too small to provide the comprehensive life insurance that they need.
These are some of the things that you should consider before deciding to secure life insurance coverage for your child. Do you have additional questions regarding your life insurance? If so, contact the experts at Steve Wilk Insurance Agency for assistance today. Located in Illinois, check out our new office at 310 S Main Street, Suite C, Lombard, IL 60148.