LIfe Insurance For Children
Why should you get Life Insurance for children?
The COVID-19 pandemic has served as a reminder for many people about the significance of life insurance. It’s become one of the most talked-about topics at the dining table of the Canadian family.
A child’s life insurance policy is as important as an adult’s life insurance policy, but for different reasons. Premiums are paid, usually monthly or annually, in exchange for the assurance that in the most devastating event in anyone’s life were to happen and a little one passes away, the insurance provider would pay a death benefit to cover the funeral costs. The child is covered under a policy, usually the policyholder is a parent, grandmother, or legal guardian. If the covered child passes away, the policyholder can also be the beneficiary.
The death benefit is not the primary reason for purchasing life insurance on a youth, there are other great and perhaps far more important reasons. Guaranteed insurability and accumulated tax free savings are the main reasons. Whole life or Universal Life insurance policies for children are common, as they provide coverage for the rest of their life.
Policy premiums are usually guaranteed, and can be designed to have a limited paying period such as 10 or 20 years at which time they are paid up. In addition, a portion of the premium goes toward accumulating cash value, which can be retrieved at any time.
The plan can provide some or all of the education costs depending on the plan and need, without touching your savings account or retirement benefits.
Always talk with your Experior Agent to make sure this is the right way and you understand how the plan works both before purchasing one and touchpoints throughout the life of the policy. Â
And it may in fact be a key component to getting a downpayment on a home or a start on a business. There are many examples of whole life and Universal life policies being used as wealth strategies with many wealthy families including the Rockefellers in the United States.
It is highly beneficial to get insurance protection for kids as early as possible. The younger the child, the lower the premiums for the coverage. Getting a child insurance product when they are in good health protects their insurability in the future from increased costs including chronic diseases, diabetes, MS or high blood pressure. Upon purchase of the policy, your child will secure insurability and insurance coverage in any situation that comes after.
Benefits of Life Insurance for Children in Canada
It ensures that your children are covered. One of the major reasons for a child life insurance coverage is that, even if your kids develop a health ailment later in life, you are guaranteed that it will be covered. Furthermore, the insurer often offers riders (at a surcharge) that allow you or your kid to get more coverage in the future without a medical examination. This is called a guaranteed insurability rider.Â
It enables you to lock in a low rate. With each passing year that you hold off on purchasing life insurance, rates will continue to rise. Obtaining life insurance for your child at an early age ensures a great low rate. Of course, you or your child will have to pay premiums for a longer length of time. However, because of the extremely low rates for children, the total premium paid over time may be lower.
It has monetary value. A part of a whole life premium goes toward creating cash value. Because the cost of insurance is cheap and there is a longer time for the monetary value to accumulate, a larger amount of the premium will go toward the cash value when you buy coverage for a child. This plan can help to provide for your child(ren)’s education if this is your desire, or whatever the desire for your child is.
Coverage options for children's life insurance in Canada
Parent waiver of premium for a Child Rider: In the event that a premium payer were to become disabled or pass away, the premiums on the plan are no longer payable, they are now considered paid – make sure to get the details of this from your Experior Agent. This benefit is a very big advantage for a child Stand Alone Term Renewable Coverage:Â
This is a child’s individual coverage, which can be extended without further medical verification at predetermined intervals. Before these policies expire, you can convert them into continuous or lifetime coverage.
Benefits of Children's Insurance in Experior Financial
Experior Financial Group is a reputable broker in children’s life insurance. Our products have a number of competitive qualities that set them apart from other life insurance companies. We offer numerous choices, including a large number of riders, making our decision for versatility. Our brokers provide the best life insurance quotes with flexibility according to your plans. We have made it our business to provide the best life policies for our client’s needs.Â
Experior is experienced in finding solutions for parents, grandparents or caregivers who want to buy life insurance for their children or grandchildren. We understand the investment vehicle that best fits your child’s needs by using questions to help focus on the areas you want as well as software that is made specifically for our clients and agents to use.
Frequently Asked Questions
Life insurance for children has different categories. Experior Financial Group associates will evaluate your financial situation using our proprietary Expert Financial Analysis tool to determine the best insurance products for you and your child
Generally 15 days of age is the earliest a life insurance policy can be purchased on a child.
Riders are additional benefits that can be purchased as part of a policy. Most commonly, They may include waiver of premium on a parent for death or disability, or a Guaranteed Insurability option that gives your child the option to purchase additional coverage at various designated intervals without a medical or occupational questions.
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