YOU ASK:

What is child life insurance?

WE ANSWER:

A child life insurance policy will be handy in helping to prepare for the child's future. You can buy various forms of life insurance to help prepare for the needs related to the various stages of your child's life.

You may only buy a child life insurance if you are directly related to him, which is the case when you are the child's parent or guardian. Child life insurance is a product that is seldom bought, perhaps because it is hard for a parent or a loved one to even think about the possible loss of a child. However, unexpected things happen, sometimes these are things we don't like and we would want to prepare for these by looking into child life insurance.

Here are some reasons why child life insurance is bought:

A child's death will involve some costs, including funeral and burial costs. This can reach up to $10,000.
The death of a child may necessitate other costs, such as financial assistance when the parent needs to take an unpaid leave from work or for bereavement counseling. The parents may also consider putting up a foundation or a memorial fund in the name of the child.
In the event that the child develops a serious medical condition, he or she already has insurance that can be kept for his or her lifetime - if it is a whole life insurance policy. This is especially necessary for families who have genetic traits that may cause the child to be denied insurance later on.
The child life insurance may also contain other benefits, such as critical illness or disability, which will provide the family with the money to pay for expenses related to the health condition.
The insurance can also come as a preparation for the time the child grows up and starts their own family.

You have the option to buy term life insurance, or whole life insurance or something in between. But, please be reminded that as parents, you should first make sure that you are adequately insured yourselves before you even think about buying child life insurance. You will want to make sure that the child is adequately protected financially in the event of your loss.

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