Purchasing insurance for your child is a strategic financial decision that can provide both long-term security and financial benefits. Here’s a guide on how to approach buying insurance for a minor:
1. Determine the Type of Insurance
- Whole Life Insurance: Often recommended for children, as it provides permanent coverage and builds cash value over time.
- Term Life Insurance: Alternatively, term life can be considered, though it does not offer the same long-term benefits as whole life.
2. Shop Around for Policies
- Compare Insurers: Compare different insurance companies‘ products, rates, and benefits.
- Focus on Features: Evaluate features like premium amounts, coverage limits, and additional benefits.
3. Consider Living Benefits
- Future Use: Policies with living benefits can be more advantageous, as they may provide future financial options for the child.
- Flexibility: These benefits include borrowing options against the policy’s cash value for expenses like education, a car, or a home.
4. Look for Whole Life Policies for Children
- Cash Value Accumulation: Whole life policies for children typically offer the ability to build cash value over time.
- Permanent Coverage: Provides lifelong insurance coverage, ensuring financial protection no matter what the future holds.
- Affordability: Premiums are generally more affordable when the insured is a child, with rates locked in for the policy’s life.
5. Consider Future Financial Needs
- Cash Value Accessibility: When the child becomes an adult, they can access the policy’s cash value for various financial needs, such as education or purchasing a home.
Recommended Companies: MassMutual and Assurity
- MassMutual: Known for its strong whole life products that build cash value and may pay dividends.
- Assurity: Offers whole life policies with competitive features for children, including cash value growth.
Buying insurance for your child can provide them with a financial head start. Whole life insurance is particularly beneficial due to its permanent coverage and cash value accumulation. Companies like MassMutual and Assurity offer robust whole life products suitable for children. Researching and comparing options is essential to find the policy that best fits your child’s future needs. Shop with the Annuity Expert today.
Contact us today
Request A Quote
Get help or a quote from a licensed financial professional. This service is free of charge.