WHY DO CHILDREN NEED INSURANCE?

The first couple of rules of thumb regarding  insurance are:  The younger you are, the cheaper insurance is, and the healthier you are the easier to qualify and cheaper insurance is.  In most cases, both these apply to children.  Children as young as 1 month and in some instances as young as 2 weeks can qualify for insurance coverage.  But why insure children when they don’t have any financial or family obligations to be concerned about and have family support?

The main reason is to protect their future insurability or protect them against possible future changes to their health and circumstances.  The best time to get insurance, is before you need it.  Children have the benefit of time and health on their side – 2 key factors in obtaining and lowering the cost of insurance.  As a parent, the biggest concern is to protect our children against hurt.

Children would not be eligible for Disability Insurance as they don’t have earned income.  They do qualify however for Life Insurance and Critical Illness insurance.  The benefit of establishing a Whole Life insurance plan for a child at a young age is it acts both as a protection plan (for their future needs) and a savings plan.  Whole Life plans have both a death benefit as well as a savings or cash value that increases with time.  In many cases, these plans can be set up so they are fully paid up in 10 or 20 years, further minimizing the costs.

Critical Illness provides protection against major illness.  Things such as heart attacks, Strokes, Cancer, and many, many other major illness.