So You Had a Baby, Is Life Insurance Necessary?

Mark Burback | Life Insurance | 16 Sep, 2015 | No Comments

There are few joys as great in this world than that of your newborn baby. Exciting, nerve-wracking, and emotionally overwhelming, having a baby is one of life’s many wonders. If you’re like most people, life insurance is the last thing on your mind.

However, as time passes, it’s important that you have a basic understanding of the purpose of life insurance for young children. Whether you’re seeking coverage or not, you should have a clear understanding of what your options are. While life insurance may not be the biggest concern on your mind right now, it’s important that you are knowledgeable about the purpose as well as the benefits of obtaining life insurance for your baby.


Purpose of Life Insurance

Essentially, the purpose of life insurance is to protect you and your loved ones in the wake of tragedy. While there are financial benefits to life insurance as well, primarily, life insurance is designed as a security measure. Although tragedy may never strike, life insurance is there to protect should it ever occur. While policies differ and rates vary, all life insurance policies are designed to guard you against the unimaginable.


Why get life insurance for a newborn?

This is a pretty common question and it’s easy to see why. While many people understand the benefit of being insured as an adult, many people question the benefit of life insurance for a child. While obtaining life insurance for your child is a private choice, we do think that there are some major benefits that you should be aware of.


Qualify for Lower Rates

Obtaining insurance for a young child is a pretty straightforward process, unlike obtaining insurance as an adult. Young children often pose very minimal health risks and can easily qualify for minimal rates. The chances are that you will purchase life insurance at some point in time for your children, but doing so at a younger age, you’re much more likely to lock in the lowest premium rates. For example, you could invest in a 20-year term life insurance policy for your child that will provide coverage even into their college years, all at a minimal cost to you.

Long-Term Financial Security

When the unthinkable occurs it can be devastating. The emotional trauma alone is enough for anyone to deal with, let alone worrying about the financial realities. While there is nothing that can take the pain away from losing a child, there is hope in security. Protecting your family is of the utmost importance and life insurance can provide exactly that, security. While the unexpected may never occur, it is better to be prepared, at least for the sake of your family.

Coverage for Unexpected Medical Expenses

Even if you have medical insurance for your child, there is a high likelihood that it would not be able to cover all of your expenses in the event that your child needs special medical care. Co-payments and co-insurance provisions can still lead to thousands of out-of-pocket medical expenses, leading some to be left in financial ruin, unable to afford the aftermath of their child’s death. Although a morbid topic, life insurance isn’t about wishing or planning for the worst, it’s about being prepared for the sake and security of your loved ones.

Maximize Your Options

Unfortunately, as we age our health problems typically increase as well. After all, obtaining reasonable life insurance later in life is not exactly the easiest process. Which means, getting insured at a younger age certainly has its advantages. As younger children are able to obtain the lowest possible premium rates and face the most diverse range of options, purchasing life insurance can be a smart choice for parents. However, many wait to get their child insured, believing that it’s not necessary and will in fact save them financially. However, younger children are able to qualify for the lowest possible premium rates. Each year, these rates increase with age. For a minimal cost, you can begin securing the future of your family and loved ones.


The Bottom Line

Ultimately, investing in life insurance for your children is a very personal choice. There are many factors that must go into this decision. From your personal financial state to your adversity towards risk, life insurance for your child is no simple matter.

However, keep in mind that there are a vast number of options that are available. There is no one size fits all when it comes to insurance. Be sure to explore all of your options before making a final decision. After all, the more educated you are about your options, the better decision you can make.


Have questions when it comes to what your options are? If so, we’d love to help. Feel free to Contact Us directly with any questions you may have and our team will be ready and waiting to help.

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