Many people wonder if its appropriate to purchase life insurance on children. There is a popular baby food maker that advertises directly to parents with newborns. We too believe it’s a great idea to purchase whole life insurance on children as soon as possible, but not for the same reasons.
- Specially designed life insurance according to The Infinite Banking Concept
- Underwriting issues resolved
- Generational Wealth is secured no matter what
- Lifetime uninterrupted compounding on a tax deferred basis
- Guaranteed Insurability Options
- Children learn about money through the Infinite Banking Concept
- Purchase larger ticket items, pay for collage, weddings, first time home purchase starting businesses
- Cash Value is the key. Many people want to purchase as little life insurance as possible. Once you understand The Infinite Banking Concept and how it can benefit a child over their lifetime
While it may seem unconventional to consider life insurance for kids, it’s a crucial aspect of planning for their future. In this blog post, we’ll explore the reasons why children need life insurance and how it can provide long-term benefits for your family.
Why Do Children Need Life Insurance?
Final Expenses: In the event of a child’s passing, funeral expenses, medical bills, and other final costs can be overwhelming. Life insurance can help cover these expenses, alleviating financial burdens on the family.
Income Replacement: If a child has a disability or illness that affects their ability to work in the future, life insurance with a waiver of premium rider can provide income replacement.
College Funding: Properly designed life insurance policies offer cash value accumulation over time, which can be used to fund college education expenses or other future needs including financing large purchases such as vehicles and equipment, business startups or secondary investments like real estate to further boost growth of the policy
Insurability: Purchasing life insurance for children when they’re young ensures they have coverage in place, even if they develop health issues later in life that might make it difficult to qualify for insurance.
Guaranteed Insurability: Many policies offer guaranteed insurability options, allowing children to purchase additional coverage as adults without requiring medical exams or underwriting.
Whole Life Insurance designed according to Nelson Nash’s Infinite Banking Concept: Offers lifetime coverage with a cash value component that grows over time as well as lifetime tax savings. Whole Life Insurance grows tax deferred and passes tax free to the beneficiaries.
Benefits of Purchasing Life Insurance for Children
Locks in Lower Premiums: Buying life insurance when children are young means lower premiums compared to purchasing policies later in life.
Builds Cash Value: Permanent life insurance policies accumulate cash value over time, providing a potential source of funds for future expenses.
Teaches Financial Responsibility: Involving children in the process of purchasing and managing their own life insurance policy can help them develop essential financial skills.
Conclusion
While it may not be an easy topic to consider, purchasing life insurance for children is an important aspect of planning for their future well-being and security. By understanding the reasons why children need life insurance and exploring available policy options, parents can make informed decisions about protecting their kids’ financial futures.
Remember, investing in your child’s financial security today can provide peace of mind and long-term benefits tomorrow. We are licensed professionals and are able to help you understand the need for life insurance on children as well as get started with a properly designed life insurance policy.
By taking proactive steps to ensure your child’s financial well-being, you’ll be better equipped to handle unexpected events and focus on what matters most – nurturing their growth and development into capable and confident individuals.
Parents or Grandparents can own life insurance on children. When they become mature enough the policy ownership can be transferred to the child if they desire, or the parents/grandparents can retain ownership and control.
