Should Your Children And Grandchildren Have Life Insurance?
January 4, 2018
Nobody enjoys having a conversation about their mortality or the need for life insurance. The only thing worse is discussing the mortality of children. We tend to tense up and go rigid when thinking about the possibility of losing a family member. We often find that it’s easier to take a “I’ll think about it tomorrow” stance. The problem is that tomorrow usually comes quicker than planned and by then it’s too late. Some people even go so far as to think that if they discuss or even purchase life insurance for their children that it will somehow jinx them.
When your agent brings up life insurance, you’re probably thinking that this is a ploy just to sell you another policy. Yes, insurance is a business; however, your agent is a service provider and the biggest part of our job is to help you protect you and your family to the best of our ability.
One of the primary reasons to purchase life insurance for your child or grandchild is that you are giving them a gift of future insurability. We have seen some healthcare reform within the last five years regarding “pre-existing conditions”. The discussions and changes are constant. What is true today about coverage may not be true tomorrow.
Why should you consider getting your children a life insurance policy when they are so young?
Typically, this is the time in their lives when they are their most healthy. The longer one lives, the odds increase of developing an illness or disorder. A family friend’s daughter developed epilepsy around the age of 13. She was perfectly healthy before that, with no family history of the disease. She was uninsurable in the private marketplace until she was 27 and had gone long enough without any seizures. She was now insurable but she was table-rated. Table-rated means the policy was as expensive as it could possibly be even though she was a non-smoker, height/weight proportionate, and had no other health issues. Most employers don’t offer any group life insurance to employees so the table-rated policy she bought rated was the only policy she had.
What her parents and most parents don’t know is that they could have purchased a $50,000 Universal Life insurance policy for her when she was a small child. Not only is it inexpensive, she would have had that policy forever unless the policy lapsed. This means no matter how her health may have changed in the future, she will always have this policy.
Another benefit is that when children turn a certain age, you can increase the coverage amount on that policy over time to start meeting their life needs. They may have a small policy that is through their employer OR maybe not, but this way they have something.
Contact the experts at Watkins Insurance Group for more information about life insurance. We’re here to help. (512) 452-8877.