When you think about life’s most precious gift, your children/ grandchildren top the list. We would do anything for them; especially, if it involves giving them an advantage in life. Aside from the ‘occasional’ temper tantrum, creation of spectacular messes and stalling when it’s time for bed, they definitely bring a tremendous sense of love, pride, joy, and infinite laughter to families. What doesn’t often top the list; however, is the idea of insuring them. Wait!  Some of you may not want to think about such an idea, but bare with me, you may want to be in the know on this one. Lately, I have been doing a lot more life and critical illness insurance on children; more than usual. Through my conversations with many a parent and grandparent, the common sentiments expressed upon learning of the benefits of insuring children were that of gratitude. Most were pleased to have learned about the benefits and that they had the ability to do something great for their precious little ones. Most even wished that their parents would have done the same when they were children.The reality is, their parents probably didn’t know such a thing were even possible, or like many parents I talk to, were uncomfortable discussing the subject. This got me thinking, how many others out there are similarly unaware, or unwilling to discover the significant benefits of insuring children, simply because they didn’t know, or didn’t want to talk about it? The reality is, it could quite possibly be one of the best kept secrets in planning your child’s future.

Benefits of Insuring Children – Life Policies:

• Easy to Insure – Children are generally healthy which makes them easy to insure – it is important to know that health is the biggest factor in qualifying for coverage at any age. When you insure a child, you will guarantee they have coverage for their lifetime, regardless of any negative changes in health, lifestyle choices, or occupation. All of which may leave them unable to qualify for coverage when they need it the most.

• Cash Values (Participating Policies) – Cash values grow within the policy on a tax-deferred basis and compound annually. There is also a guaranteed cash component. The cash may be accessed by the child later in life and used for whatever they choose (ie. help pay for their education, a down payment on a house, wedding, vehicle, traveling, etc.).

• Guaranteed Ability to Increase Coverage – As an adult, the child will have the guaranteed ability to increase their amount of coverage, regardless of whether, or not, they would normally qualify. This is important if they need to increase their coverage to properly protect their families, but are uninsurable to due negative changes in health, lifestyle choices, or occupational reasons.

• Lump Sum, Tax Free, Death Benefit – No one wants to talk about the death of a loved one, but in the unfortunate event that something did happen, the death benefit can help provide you with with money needed for final expenses, or to help you afford time away from work to allow the time necessary to properly grieve your loss, as well as be there for surviving family members. When the child reaches adulthood, the death benefit could serve as a financial parachute for their family so that they could preserve their dignity and best maintain their lifestyle during such a difficult time.

• Inexpensive Premiums – One of the best things about being young, inexpensive premiums. You have the ability to lock-in inexpensive premiums that will never be available to them, again. These premiums are also locked-in for their lifetime. Think of it as adult insurance at children prices!

A well respected insurance professional with 45+ years of experience, and a close mentor of mine, George Sigurdson, is the one who opened my eyes to the value of insuring children. He refers to it as ‘Immortality Insurance’ because it’s a gift that is intended to last the child’s entire lifetime, well into adulthood, long after the parents, or grandparents are gone. You know what, he’s completely right! Thanks, George.

Have questions? Feel free to contact me anytime. Always here to help.

Please pass this post along to anyone you know who would appreciate it. Thank you.

All the best,

Ryan
204-292-6585
ryan@rlsinsurance.ca