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by Adam Mann


The question of insuring children is a loaded one. The death of a child is an unimaginable tragedy, one of parents’ worst nightmares and something no one would want to even contemplate. Understandably, many people find the idea of insuring their children to be somewhat distasteful—or downright offensive. But purchasing a permanent life insurance policy for your child today could give them a financial head start tomorrow. 

A Financial Advantage

   There are two very good reasons to consider insuring your child—for their own benefit. The first is financial: the earlier you purchase life insurance, the less it costs. No matter what kind of policy you purchase, life insurance costs more the older you are. However, with a permanent life insurance policy, you can lock in a premium price when you first purchase the policy. If you purchase a policy for your child at a young age, that affordable premium is locked in and will not go up throughout the course of your child’s life, as long as the policy is kept in force. That can be an enormous financial advantage to your child as she goes through life.

   In addition, the earlier you purchase permanent life insurance, the longer the cash value has to grow tax-deferred. Over the years, that can make a huge difference in the amount of cash value that can accumulate. And down the road, that cash value can be borrowed against if necessary—for instance, to buy a house, pay for college tuition or help supplement retirement income. That’s why having a cash value accumulating for a long time can be a financial advantage to your child in the future.

The Gift of Insurability

   However, the most compelling reason to purchase life insurance for your child while he or she is young is the fact that doing so can ensure their insurability later in life. We all pray that our children lead healthy lives. But, realistically, so much can happen to make them uninsurable or only insurable at a high cost—even their chosen profession. A juvenile life insurance policy can help protect them when they are young, and allow for greater protection as they grow older. Many policies come with riders that allow your child to purchase additional insurance at various points in her life. By insuring your child while she is young, you can help make sure she can provide financial protection for her own family later on in her life.

Should Tragedy Strike

   Even in the event of an unthinkable tragedy, the proceeds of a child’s life insurance policy could make a difference in so many ways. That money could be used to keep your child’s memory alive—for instance, you can give to a charity or create a memorial fund in your child’s name.

   The death benefit can also help you deal with some of real financial ramifications of such a tragedy, such as medical or funeral costs. It would be devastating enough to lose a child, without having to also struggle to cover medical bills and final expenses, which can run in the thousands of dollars. The policy death benefit could also allow you to grieve properly. Many companies will give parents a week off with pay when a child dies, but how many people would be ready to go back to work one week after losing their child? The death benefit could allow you to take the time you need to grieve without having to worry about your income during that time.

A Gift for a Lifetime

   Purchasing life insurance for your children should not come instead of purchasing life insurance for yourself and your spouse, or saving for your retirement. However, if you have the funds, purchasing an insurance policy for your children could help ensure they are protected, and also help them and their future families down the line.

Adam Mann is an agent with New York Life Insurance Company. 914-934-5528.

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