Whole Life Insurance: Benefits to Secure Your Future

Child whole life insurance may sound a bit morbid but it really offers a lot of benefits into your future that you should be aware of. Let’s have a look.

Child whole life insurance is a policy written to cover a child in the event of their untimely death. The child whole life insurance policy would pay the beneficiary, which is usually the parent(s), the face value of the policy, should the child die. This money can be used to pay medical bills, funeral costs, or donate to a charity of their choice in the child’s name.

Cheap Premiums on Child Whole Life Insurance

Because the risk of death is so low on a young child the premiums are very low, and they remain that way as the child grows into a teen and then into an adult. This can be extremely beneficial.

Guaranteed Coverage as Adults

A child whole life insurance policy almost always guarantees coverage into adulthood. It means even if the child is sick when he/she becomes an adult without having to pass a medical exam.

Convert Child Whole Life Insurance to Adult Insurance

At age 21 your son/daughter can convert the child whole life insurance policy to an adult policy without a medical, and still keeping affordable premiums associated with the conversion.

Coverage for Funeral Expenses

No one wants to think about the unlikely event of a child dying unexpectedly but it does happen, and if you have child whole life insurance you’ll at least have the funds to provide your child with beautiful funeral. It can also be used to cover medical expenses.

Savings Plan

A child whole life insurance policy can also be a savings plan building a cash value that can be used at a later date whoever your son/daughter sees fit. Perhaps they’ll use it to travel, pay tuition, a down payment on a home. The options are endless. Of course they can leave the cash value in the policy and let it continue to grow until retirement. The options are endless. Best of all it is tax deferred.

Whole life insurance is the most complex and costly form of insurance. There is nothing morbid about purchasing a child whole life insurance policy. It makes good financial sense. The policy will cover your child for their entire lifetime.

It will provide peace of mind for the parents throughout the time the child is growing up, and it can then provide peace of mind as the child becomes an adult and the policy is switched into their name.

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