As a parent, you’d be hunting for the best insurance plan for your child. With financial constraints during incidents like sickness or educational requirements breathing fire behind your neck, purchasing the best insurance plan makes sense. Well, choosing a suitable insurance scheme for children happens to be a crucial decision. Remember, your child’s ease of leading their life largely depends on your insurance plan choice.
Established insurers like Insurance for Children have come up with customizable whole life insurance policies for children. You might check this article to get a detailed idea of the benefits of having one of these plans in place.
Does your child need an insurance policy?
No parent would like to think about something terrible befalling their child. However, you need to take adequate measures before the unthinkable happens. In this case, you need to prioritize your financial freedom. With the availability of funds during crucial hours like sickness, you can save your child’s life. Therefore, it’s wise to keep your child insured. These policies go beyond covering the funeral costs, warranting financial protection to address medical emergencies and urgent financial needs.
With Canada’s infant mortality rate hovering around 0.5%, buying a life insurance policy for your child makes sense. Even people aged between 55 and 60 have the same mortality rate in Canada, and most of them are insured. From this perspective, purchasing a whole life insurance policy for your child would be a favorable decision.
What is whole life insurance for children?
Once you start prioritizing your family’s financial security, you will find a life insurance policy for your child worth it. Remember, such policies continue to benefit children beyond their medical bills. Even when they grow up and reach old age, a whole life insurance settlement would provide the necessary financial support. In addition, as the vocabulary of these policies suggests, your child would also benefit from purchasing a home, marrying, or having educational requirements.
Therefore, simply defined, whole life insurance policies for children are actually savings plans designed in the form of insurance. Parents, grandparents, or any child’s legal guardian can open these policies as soon as the child is 14 days old. With one of these policies, you can craft a financially secure future for your child. While many parents invest in RESP, you must be aware of the limitations of these government policies. With a whole life insurance plan, you reserve the liberty to use the funds for any financial emergency or requirement that arises.
What are the advantages of purchasing a life insurance policy for children?
Parents should be aware of the several advantages of a life insurance policy for their children. First, you would have adequate coverage for the reparation expenses in an untimely loss. Even if you overlook the thought of a premature departure of the child, investing in a whole life insurance scheme has several advantages.
- Your child would have an extra investment and savings tool for their future.
- There would be lifelong coverage for insurance for your child. People diagnosed with critical illnesses fail to qualify for life or health insurance policies at an older age. Therefore, investing early in your child’s insurance would be a diplomatic move.
- Child insurance policies come with comparatively lower premiums that you would find affordable. Children have relatively better health, leading to lower premiums considering their age.
- You can access the accumulated cash for the plan at any time. For instance, your child might want to launch a startup or need financial assistance managing expenses during higher education. Under these circumstances, they would find the whole life insurance policy benefits.
- Even after reaching adulthood, your child would have the provision to continue with the same insurance plan.
- Based on your budget and other preferences, you can choose from several investment options for a whole life insurance plan for your child.
Choosing the best insurance plan for your child
While choosing the right insurance plan for your child, you need to be spot on with your decision. The whole life insurance policy designed by Insurance for Children would be a suitable scheme for your child.
The Child Plan is a comprehensive policy where your child would enjoy annual tax-free dividends throughout their lives. They can use these funds to afford educational programs anywhere in the world. There is no restriction whatsoever on how they use the funds. So whether your child wants to venture into entrepreneurship and needs financial assistance to launch a business or make a down payment for their first home, they would have access to the necessary funds.
Here are some of the strategic benefits of purchasing a whole life insurance policy for your child.
- You would have a ready educational fund, but unlike RESPs, you can use the amount for other purposes too.
- The cash value would grow guaranteed from the day you open the amount, free from tax.
- You can transfer the policy to your child when they reach adulthood but control the funds even after that.
- A whole life insurance policy would grow throughout the life of your child.
- Any child’s legal guardian, including parents, grandparents, uncles, or aunts, can open these policies.
- Within 20 years, the policy would be permanently funded. Therefore, you need not make any deposit after that.
When choosing something as valuable as your child’s insurance policy, it makes sense to go for a reputed insurer. Now, you know where to purchase your child’s whole life insurance policy. With a trusted insurer, you can rest assured about the availability of funds at any crucial hour.
Also, whole life insurance policies holistically cover any financial emergency for your child. Evidently, this type of policy would be ideal for your child, as the scheme would continue to benefit your dear one throughout the generation. Consult an insurance professional today to get the best policy for your child.