Why You Should Buy Life Insurance for Your Child

By Kristy Parker, CISR

Georgetown Insurance Service, Inc.

Silver Spring, MD

 

Becoming a parent for the first time is simultaneously one of the most terrifying and rewarding experiences. Everyone around you is offering advice on how to prepare and what to expect — regardless of whether you asked them in the first place. You may find yourself googling random questions, pinning your favorite nursery decorations, and buying all the baby clothes — yes you really did need those twelve pairs of itty-bitty shoes.

You’ve budgeted out what the approximate hospital cost will be, how much diapers cost, and perhaps, if you are really ahead of it, you’ve even researched a 529 college savings plan. It’s almost go time and you’re ready…or are you?

I have a question for you — a question you probably haven’t considered yet or expected to hear.  Have you investigated your soon-to-be baby’s life insurance options yet? I know this may not seem like the opportune — or even necessary — time to consider this…but it is. Before you dismiss my question, check out my reasoning for why now is the time you should be looking:

  • Life is about to get really busy – Once the baby is born, your focus will be completely zapped. Even work will feel like a burden and all you will want to do is snuggle down with your new little family. Take the time to research your options now so you don’t have to take away precious bonding moments in the future. This will allow you ample time to research and discuss your options.
  • Ultra-low rates – As with all types of insurance, it only gets more expensive as you get older. The same is true for life insurance for your child. You can lock in your child’s insurability and snag a low rate if you time it correctly. The first year of your child’s life is the ideal window for purchasing. (FYI – We are talking some policies that are less than $10 a month).
  • Buy now, gift later – Depending on the plan you choose, you can buy a policy that can be transferred or gifted to your child down the line. This life insurance policy purchased when your child is a baby could turn into a gift for your future grandchildren. The policy would be eventually cashed out by your grandchildren alleviating the financial stress of paying for final arrangements.
  • Safeguarding your financial future – Here it is. The one I saved for last so we could put off mentioning it for as long as possible. Health is not guaranteed — even for children. The last thing any parent wants is to bury their child. The experience itself is traumatizing enough without having to worry about the financial burden that medical expenses and funerals can cause. Parents want to give their children the world — and that mentality extends till the very end. There is nothing worse than feeling the need to cut corners when planning your child’s final arrangements. Having a life insurance policy can be the financial protection you need to help make the worst situation a bit less financially devastating.

While you may be thinking…this lady is just trying to sell me a policy, I assure you I’m not. Let me tell you why. As an insurance agent, it is my job to look out for the best interests of my clients, and this includes expecting parents. This is an issue that hits close to home. My husband lost his daughter 10 years ago at the age of 20 years old. She was diagnosed with a terminal illness at a very young age and it became clear that her time on earth would be limited. He didn’t have life insurance on her and once the diagnosis was made they couldn’t purchase one.

I’m not telling you this story to guilt trip you or to make you worry — but simply to make you aware. Life, health, and financial security are not guaranteed. Why wouldn’t we take every measure possible to ensure the comfort of our families — including our children to great grandchildren?

Life insurance for your children shouldn’t be considered a luxury item, but a routine expense. Unlike health insurance, the right life insurance policy can and will pay off someday — hopefully a century down the road. It is never too late to investigate your life insurance options for your children. There is no better time than the present to start the process. Contact Kristy Parker for more information.

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