Why?
Why do children need life insurance?
We never want to think about the worst happening to our children. Life insurance protects us financially in the event that a child passes away, but what most people don’t realize is the value that the insurance will have in the child later years.
You see, life insurance is bought with money but paid for with health. Life insurance premiums are calculated based on the expected life span of the person. The younger the person, the longer the likely number of years that the company will collect the premiums, hence the lower monthly premium. With every passing year, we each get closer to passing away meaning and consequently, life insurance premiums cost more. This is why it is important to purchase life insurance for children when they are young.
Barring any serious health conditions, the younger the child is when you purchase the insurance, the cheaper it will be.
Also, we usually don’t get healthier as we get older. A healthy person today could develop a disease tomorrow that makes that person un-insurable. Any existing insurance in force when this happens is likely all the insurance that this person will ever be able to purchase. This is why it’s not only cost efficient to purchase baby life insurance, it also locks in coverage for the child while he or she is healthy and qualifies for life insurance.
