The Gerber Life Parenting Blog

Life Insurance for Children Offers Security for Families

October 16, 2012

Life Insurance for ChildrenEverybody wants to believe that his or her children will live to grow old. Unfortunately, tragedies do occur and some children pass away when they are young. Whether it is by an accident or disease, early death can have a financial burden on a family. The parents will have to pay for funeral expenses and possibly medical bills that their health insurance did not cover. The emotional strains can be magnified with the financial burdens.

Should you buy life insurance for children? Some will argue that it is a waste of money. Life insurance was intended to replace lost income for a family in situations where a death occurs to an income earner. Since children earn little to no income, there is no need for life insurance. However, children can leave a financial liability on a family if an early death occurs. Life insurance can be viewed as security against potential tragedy.

One question many parents have when purchasing life insurance for children is whether to obtain term or whole life insurance. Term life insurance will cover the life of the policy holder for a given period of time. For example, if one buys a ten-year term life insurance policy for your child to cover ages eight through eighteen, the child will be covered if he or she dies within that time frame. The policy builds up no cash value and is typically far cheaper than whole life. Term insurance is a security policy only, not a financial asset.

On the other hand, whole life insurance can be viewed more as an asset than term life insurance. Whole life insurance builds up value in time. The policy holder can tap into the value of the policy. In addition, the child can maintain the whole-life policy as he or she becomes an adult. This can ensure that the child has a sustainable life insurance policy if an injury occurs that makes the child uninsurable as an adult. Whole life insurance also will give the adult child an option to tap into for money in case of an emergency.

When considering insurance for families, life insurance for children can be a viable option for increasing the families’ security. Gerber Life insurance Company specializes in life insurance for children and offers outstanding coverage to protect families against the potential costs of a tragedy.

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