Why You Should Buy Your Kid a Life Insurance Policy 

A life insurance policy can play a critical role in your family’s financial security. Whether you’re a sole provider or work with a spouse or partner to provide for your household, you’re likely aware of the importance of suitable coverage.

However, you should also consider a common coverage gap: policies taken out on your children. While retaining life insurance for dependents may seem strange to some people, you should be aware of the potential importance of doing so.

Why is a Life Insurance Policy for Your Children Important?

It’s entirely possible to purchase life insurance policies listing people besides yourself as the insureds. In such situations, you may often list yourself as the beneficiary, which can potentially assist with financial hardship following tragedies.

The thought of losing a child is, of course, among the most unpleasant possibilities to consider. Still, despite how difficult it may be to imagine such situations, planning accordingly can make all the difference as you and your loved ones seek to manage the aftermath.

What Can Policies for Children Provide?

Life insurance policies taken out on your children can generally function similarly to those you might purchase as the insured. As long as you keep up with your premiums, you have the right to submit a claim for the death benefit should one of your insured children pass away.

If approved, resulting payouts could help you manage financial repercussions, such as funeral expenses and paying off outstanding debts (e.g., student loans).

These funds can be particularly helpful as they may allow you to take time off work or otherwise focus on navigating the grieving process.

We’re Here to Help

Contact Valera Agency in Macungie, Pennsylvania, today to learn more about life insurance options for your children and establish suitable coverage for your family.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.