Reader’s Question:

I have an adorable baby girl that is turning two this year. My agent friend here in Edmond, Oklahoma suggested I get life insurance for my child. Does she even need the insurance? Why should I get her one?

Janice

Edmond, OK

Generally, one gets life insurance to make sure that their loved ones and their valuable assets are protected in the event of their death. With the correct amount of coverage, those left behind need not worry about their finances and their mortgages.

So if we take this most basic reason as your motive to get life insurance then it would be illogical to get your child life insurance as she is the one dependent on you and not the other way around, right? However, your friend in Edmond, Oklahoma may also have reason to offer life insurance to your child. You see, if you get child life insurance now, specifically whole life insurance, you have the chance to lock in low premium rates for a longer period of time. Meaning, when she’s on her own and deciding to get her own life insurance, in addition to one you get her, she may also enjoy lower premium rates. Not only that, with whole life insurance, she can benefit from the cash values that accumulate each year.

So with the right kind of child life insurance, she may have just enough to venture into a business when she reaches 20 to 25 years old, depending on the policy. In addition to this, getting her coverage now means securing her coverage for the future, no matter what her health may be. Still, I suggest you ensure that you as the mother get enough life insurance coverage first.

Tags: child life insurance, life insurance