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Cheap life insurance for children

In a way, this subject sounds a little ghoulish. Insuring the lives of your own children gives you a benefit if they die. This would be ironic because, while they are children, all you do is pay out money to look after them. Should they die, you are saved all these costs. To get additional cash. . . Except, a few children do make a real financial contribution to the family as actors, entertainers and writers. When their earnings may be millions during their childhood, it genuinely is worth insuring them. Indeed, this may be done alongside the television, movie or other employers. Remember some like Justin Bieber are earning small fortunes as singers and musicians, often appearing on Nickelodeon and Radio Disney which feature teen singers and very successfully promote the music to the teen market. For arguments sake, imagine the crisis if Daniel Radcliffe had fallen off the griffin into the loch and drowned while filming Harry Potter. His parents would have needed the insurance money to pay for the state funeral.

Coming back down to earth more gently, not every child can be a star. The most they will hope for is earning a few dollars babysitting or mowing the grass in neighbors' yards. Yet there can be direct benefits in taking out insurance while they are young. Let's start with an advantage that will continue to blight those seeking insurance. Although the Affordable Care Act will prevent insurers from denying healthcare cover to those with preexisting conditions (assuming it survives the challenge from the Supreme Court judges), it remains a problem or those wishing to insure their lives. Obviously, insurers are trying to estimate how long you are likely to live so the right premium rate can be set. If you have a condition likely to cause your death in a few years, the insurer will gracefully refuse to quote. But if you insure your child long before any disease or disorder has a chance to appear, this locks in cover and potentially represents the best gift you could ever give your child. This assumes, of course, there is no family history of life-threatening diseases which would have to be disclosed and might trigger rejection. Even more importantly, the cover you buy will usually have a low premium rate. If you are proposing to insure from the age, say, of five years, the premium is likely to be twenty years cheaper than the equivalent for twenty-somethings who insure their own lives.

There's also a selfish reason for this type of insurance. Should your child fall ill, you might want to take time off work to look after him or her. The policy will make good on your lost pay and any medical expenses you have to pay out of your own pocket. So there you have the possibilities set out. You might think even cheap life insurance for your children is an unnecessary burden to add to your family budget. It would only be valuable if your child fell ill and you built up debts trying to save his or her life. Or you may think this type of life insurance is a good gift, particularly if it comes with a cash value. Over a child's long life, this could grow into a significant fund.

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