Term Life Insurance Articles
Purchasing Term Life Insurance For A Minor Child
2010-10-06
Term life insurance quotes for minor children have been coming in the mail for years. As media increases, the awareness for such a need may plant a seed of questioning in the minds of a parent or even grandparent. What is term life insurance, and is it needed for a child?
Term life insurance is quite simply how it reads: insurance for a term. The least expensive in the family of life insurances, the premiums are low but do not build cash value. The length of the term can be 5, 10, 20 or 30 years. Premiums are paid for the entire term or until the insured passes away, whichever comes first.
Typically, term life insurance policies are purchased to cover the cost of losing an income. Young couples just starting families purchase such policies to ensure a survivor will be protected financially should the other die unexpectantly. The policy benefits can cover such expenses as funeral arrangements, child care expenses or hospital bills.
The benefit to purchasing term life policy over a whole life policy is two-fold. First, the premiums are lower. Because the policy is only in effect for a given amount of time, generally the insured will outlive the policy. Second, persons wishing to protect against a sudden loss to the family through a death are typically less secure financially. Loss of income in the earlier years can be more catastrophic than later after the mortgage has been paid, the children have left home, and other financial provisions have been made.
Needing term life insurance for a child may seem like an ineffective maneuver. However, as much as no parent wants to bear the thought of losing a child, a term life policy in a minor child's name has the same effect as an adult's. If the unthinkable happens, the child's term life policy provides the monetary means necessary for funeral arrangements and other final expenses. Because term life insurance quotes are based on age, the premiums are exceptionally low, making this an attractive policy to secure for a minor child.
There are other benefits to purchasing a term life policy for a child. If the child outlives the policy, he or she has the option of converting the policy to another without any health checks. In addition, some term policies have a rider that protects the child for future insurance products for which he or she may be considered uninsurable due to certain exclusions such as pre-existing conditions.
No one wants to think about the death of a spouse or especially a child. However, term life insurance will help take care of the financial pain that comes with such a loss.
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Term life insurance quotes for minor children have been coming in the mail for years. As media increases, the awareness for such a need may plant a seed of questioning in the minds of a parent or even grandparent. What is term life insurance, and is it needed for a child?
Term life insurance is quite simply how it reads: insurance for a term. The least expensive in the family of life insurances, the premiums are low but do not build cash value. The length of the term can be 5, 10, 20 or 30 years. Premiums are paid for the entire term or until the insured passes away, whichever comes first.
Typically, term life insurance policies are purchased to cover the cost of losing an income. Young couples just starting families purchase such policies to ensure a survivor will be protected financially should the other die unexpectantly. The policy benefits can cover such expenses as funeral arrangements, child care expenses or hospital bills.
The benefit to purchasing term life policy over a whole life policy is two-fold. First, the premiums are lower. Because the policy is only in effect for a given amount of time, generally the insured will outlive the policy. Second, persons wishing to protect against a sudden loss to the family through a death are typically less secure financially. Loss of income in the earlier years can be more catastrophic than later after the mortgage has been paid, the children have left home, and other financial provisions have been made.
Needing term life insurance for a child may seem like an ineffective maneuver. However, as much as no parent wants to bear the thought of losing a child, a term life policy in a minor child's name has the same effect as an adult's. If the unthinkable happens, the child's term life policy provides the monetary means necessary for funeral arrangements and other final expenses. Because term life insurance quotes are based on age, the premiums are exceptionally low, making this an attractive policy to secure for a minor child.
There are other benefits to purchasing a term life policy for a child. If the child outlives the policy, he or she has the option of converting the policy to another without any health checks. In addition, some term policies have a rider that protects the child for future insurance products for which he or she may be considered uninsurable due to certain exclusions such as pre-existing conditions.
No one wants to think about the death of a spouse or especially a child. However, term life insurance will help take care of the financial pain that comes with such a loss.
