The longer I have been in the business of insurance the more I feel compelled to share about the importance of life insurance for children. This can be especially important in for children and can be a smart idea for grandparents or parents to purchase a life policy for their child.
With any insurance product that needs to be underwritten, they will review medical history and determine if the child is eligible to be offered coverage. A young healthy child can obtain life insurance easily. We cannot predict the future of a child, but we can protect his future eligibility by getting a life insurance policy on them when they are young and healthy. I have had some friends who had healthy children when they were younger, and unexpectedly they had an illness effect their child at age 10 they will prevent the child from ever being able to obtain individual life insurance. This is a sad situation and could have been helped if they had early on in the child’s life bought life insurance for them.
Some of the Universal Life Policies can offer 20 pay, that allow after twenty years of payments, they are fully paid up and will offer protection for the child until age 100+. We did purchase a life policy on our daughter for two reasons, to give her a paid up life policy at age 25 and to protect her insurability and protect her family to age 100, a generation skipping gift.
If you are interested in looking at some options for your children or grandchildren, we can share with you some options.