The basic premise of life insurance - help cover the possibility of financial hardship that follows the personal tragedy of losing a loved one.
Oh but wait there's more...
I dont want to think the my kids are ever going to die...so i don't. I like to focus on the positives so lets look at the "Living Benefit" that permanent Life Insurance provides.
= Cash Value, Tax-Free growth, and Guaranteed Insurability
- Cash Value - most of the time will not only provide gain, it will guarantee it
- Tax Free growth of a portion of your premium at a guaranteed interest rate
- Guaranteed Insurability - quite possibly be the most important reason for Life Insurance on your child. It guarantees they have a policy for the rest of their life (provided the premium gets paid)
- In many cases there will also be an opportunity to add benefit at a later date without going through the underwriting process = NO needles, NO urine samples, not even height or weight questions!
- WHY IS THAT IMPORTANT? - when you purchased Life Insurance on yourself you may recall the myriad of tests you were subjected to
- If your parents purchased it for you as a child it would be cheaper and BTW - would have cash value at this point $$$$
- Add'l benefit of Guaranteed Insurability - Have a family history of certain types of disease? (i.e - diabetes) Having a policy as a child would ensure that if and when diagnosed and possibly uninisurable - coverage would already be in place.
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