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Andrew Smith

Andrew Smith

Life Insurance for Children

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Life Insurance for Children: One of the top five goals to achieve in 2021 according to an independent survey we recently posted on our Abby’s Consulting Facebook Page. 26% of those surveyed claimed it was their most important milestone to achieve.

With that data, we decided to talk about finance and found a study by the US Department of Agriculture that estimates the average cost of raising a child by region in the year 2020 from age 0 to 18.

cost of raising a child 1 Life Insurance for Children

The latest study was published by the USDA in 2017, however, the update was posted in 2020 and accounted for inflation assuming 2.2% annually. This would actually bring the average cost up to $284K! And these numbers don’t even include the cost of attending college, which we know is an expense that looms over most parents’ heads for years leading up to high school graduation, and beyond. What is a middle-class parent to do?! 

We may not be able to help you lower these expenses, but we can offer an opportunity through a basic Life Insurance plan that will help to save specifically for the day when you are writing your first tuition check.

It may seem unusual to start talking about Life Insurance when we were just talking about newborn babies, but the benefits of Life Insurance can have other applications beyond what’s in the name.

Many companies including Gerber Life, offer a Whole Life Policy that builds cash value and allows for borrowing against, doubles in coverage at a certain age, and allows for flexible spending for either college or whatever path your children decide to take after high school graduation. Just like an educational IRA, except with stable growth that is not subject to stock market volatility. And unlike adult life insurance, these are BABY premiums!

Curious to hear more? Let’s explore some of the companies that offer these plans and how we can make them work for you. As always, Abby’s is on the lookout for the right plan at the right price.

FAQs

What kind of life insurance covers children?

Child life insurance is often obtained by a parent, guardian, or grandparent to ensure the life of a minor. These policies are, in general, whole life policies, which are a sort of permanent life insurance. This means that as long as the premiums are paid, the child will be covered for the rest of his or her life.

How much life insurance should I leave for my child?

You can add a rider to your existing life insurance policy for roughly $2.50 per month. This will protect you for around $10,000 to $15,000 if one of your children passes away. This sum should be sufficient to pay the majority, if not all, of the burial expenses.

What is the minimum age for life insurance?

While there is no minimum age for life insurance, those with financial and familial responsibilities may find it most useful. If you’d like to learn more about your options, call +1 (973) 590-2695 to talk with a professional insurance representative.

Can I take out Life Insurance for Children on my son?

Only biological or adoptive parents, or court-appointed legal guardians, can ensure children under the age of 17 in most situations. Any life insurance application that someone takes out on them must be signed by a child who is 15 years old or older.

How much is Gerber Life insurance a month?

Gerber Life offers a 20-year, $100,000 Term Life policy for as little as $15.42 per month. The policy might be renewed for a short period of time or changed into Whole Life insurance at the end of the term. “Term life plans do not build cash value, whereas whole life policies do.”

What reasons will Life Insurance for Children not pay?

The life insurance company may refuse to reimburse you if you die while committing a crime or engaging in criminal activities. If you are killed while stealing a car, for example, your beneficiary will not be compensated.

Can I have 2 life insurance policies?

There are no restrictions on the number of life insurance policies you can own, and in some cases, having many plans might help you plan for your financial future.

Who would not need life insurance?

You probably don’t need life insurance if you’re a single individual with no dependents – at least not right now. Life insurance is especially recommended by financial experts for persons who financially support a spouse, children, or other relatives. That means that their income is used to support people other than themselves.

What are the 3 types of life insurance?

Permanent life insurance is divided into three categories: whole, universal, and variable.

How do I take out a life insurance policy on a family member?

You can’t get a policy for someone else without their knowledge, and you must be able to demonstrate insurable interest or proof that you will be financially harmed if they die. To buy a life insurance policy for someone else, you must show that both parties have a financial stake in the coverage.
 

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