| Child insurance is a subject often avoided and a | | | | has the ability to get insurance in the future. This |
| very delicate issue in itself. However, it can make | | | | will protect the child's ability to obtain insurance |
| sense from a financial standpoint, depending on | | | | against future health problems, such as asthma or |
| the current situation in your family. | | | | cancer; it will also protect the child against high-risk |
| In general, life insurance is used to protect a | | | | occupations such as becoming a firefighter or pilot. |
| persons family in the event of an untimely death. | | | | Most life-insurance policies give you the option of |
| If the individual who earns the most dies, how will | | | | adding a guaranteed insurability rider which allows |
| you replace the lost income? In most cases, | | | | the child to upgrade his/her insurance in the |
| young couples do not have big enough reserves | | | | future, without a medical. This is a key point and |
| to sustain this loss and without life insurance | | | | should not be overlooked. |
| providing a "safety net", the spouse can be | | | | Permanent policies also allow your child to lock in |
| forced to sell the house you both worked so hard | | | | at very favourable rates and can be paid up in a |
| for and experience a major drop in living | | | | limited number of years. The policy can generate |
| standards. | | | | cash value which is available in the case of an |
| When analyzing the life insurance needs of your | | | | emergency or to help supplement the child's |
| family, the first thing to do is to insure the | | | | retirement income. |
| primary-income earners. This is self-explanatory, | | | | If you have hereditary health issues, insuring your |
| as in most instances children are not income | | | | child has an extra added importance, as it creates |
| earners. While a child's death would have an | | | | a safety-net against the child developing health |
| unquantifiable emotional impact, it would not have | | | | problems in the future. A child who eventually has |
| a major financial impact. However, assuming that | | | | a family of his/her own may have developed |
| all of your main financial bases are well-covered, | | | | health issues in the future and as a result, it might |
| insuring a child can make sense and can also offer | | | | be very hard or impossible to obtain life insurance |
| many benefit, especially long-term. | | | | policies or they would be with an extra added |
| For example, insuring a child at a young age | | | | cost. |
| guarantees that he or she has insurance now and | | | | |