How to Buy Life Insurance for Children

Step-by-Step Guide

1. 1

   Step 1: Learn about the different kinds of policies that are available and choose the one that meets your goals and the needs of your child.

   Buy term life insurance if you want to insure your child for a specified period of time.
   
   At the end of the term you or your child can renew the policy for another term, and the cost of the policy will be determined, in part, by the fact that he or she was previously insured.
   
   The full amount of the premiums go toward the dollar value of the policy, allowing you to buy the most coverage for the price.
   
   Invest in a whole life policy if you want to accumulate cash value that your child can borrow against for large expenses, such as a down payment on a home or college tuition.
   
   If your child decides not to continue coverage, he or she will be paid the cash value of the policy.
   
   Whole life policies cost more initially, but the premiums don't increase as the child gets older.
   
   Consider an endowment policy if you'd like the insurance to pay your child the coverage amount at the certain age, instead of having your child borrow against the cash value.
   
   Cover all your children for a low price by purchasing a child rider on your own life insurance policy.
2. 2

   Step 2: Work with your current life insurance agent to buy the insurance you need.

   Your current agent will know your family situation, what insurance you already have and how to fit your child's policy into your family's overall financial plan. , Because the amount of coverage and premiums are calculated based on known risk factors, withholding information may result in the insurance company refusing to honor the policy. ,,
3. 3

   Step 3: Be honest about your child's health and other factors

4. 4

   Step 4: such as inherited conditions.

5. 5

   Step 5: Name yourself and your child's other parent as beneficiaries so you can use the proceeds from the policy to pay for medical bills

6. 6

   Step 6: funeral expenses and income lost from taking time away from work.

7. 7

   Step 7: Read the policy carefully to make sure you know what you're paying for and how to borrow against it or make a claim.

Detailed Guide

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