Children’s Life Insurance

It’s easy to appreciate the need for an adult to have life insurance. It allows you to sleep soundly in the knowledge that your loved ones would have the means to pay the funeral costs, in the result of your death, and to cover the loss of your income. Although children don’t tend to have an income on which a family would rely, parents are increasingly seeing the value of having children’s life insurance in place, as well as their own.

Why insure a child?

It’s hard to even contemplate the possibility of the death of a child; regrettably, it does happen. After such a tragic event, it would be unthinkable to expect close family to continue with their usual routine, including work, which could result in a serious drop in earnings at a time when the last thing anyone needs is additional stress. Children’s life insurance can, therefore, not only cover the cost of the funeral, but can also give the parents the freedom to take a leave of absence long enough to learn to cope with their devastating loss.

About children’s life insurance

Children can be insured via add-ons to their parents’ insurance or via separate policies taken out for them.

Additionally, as children are not liable for tax, the money paid out on a child’s life insurance policy is also not taxable.

There’s no doubt that insuring the life of parents should be the first priority, but acquiring life insurance for children is a sensible part of a family’s overall economic strategy. As well as performing the invaluable function of providing a financial safety net against the costs of a funeral and bereavement leave, insurance can be an investment. When weighed against the long-term potential benefits, the relatively low outlay makes children’s life insurance a useful and affordable option.