Childrens Life Insurance

Childrens Life Insurance is sometimes misunderstood in that people think it is being purchased with the idea of potential for financial gain. Or that there would not be a financial loss if a child died as they do not earn an income that needs replacement.

It is true that no one should profit from a death, especially a child’s. And it is true that children do not contribute financially to the families income. With that said, it is a good idea to consider some life insurance for children. First, be sure that there is enough coverage on the parents.

Why Consider Childrens Life Insurance?

Imagine for a moment that your child died. This is hard to do. Painfully hard. You might even refuse to do so. If it really happened your family would be devastated. You would likely not want to work for a long time. This is a key reason why you might want life insurance on a child. There could be an emergency fund through the life insurance that would enable you to take extended time off work to care for your family, and yourself.

A second, less powerful, reason is that you would need money for a funeral. Imagine having to worry about money for a proper funeral and burial for your child.

Other reasons to consider life insurance for children

It is obvious that the vast majority of children live to adulthood. When they do the life insurance that their parents purchased may be beneficial in the following ways

Insurability - If they are uninsurable there is a policy in force. A young adult might be uninsurable due to their occupation, lifestyle, or health
Lower cost - buying coverage at such a young age locks in low premiums
Transferable - Parents can transfer ownership of the policy to the child when the child becomes an adult
Build value - some policies will build a cash value that might be of use to a child (generally this will not be as effective as an RESP and both life insurance and an RESP are recommended).

How much will it cost?

Premiums are very affordable depending on the type of policy.
For more information or a quote on life insurance for your child, contact us.

Visit Life Insurance in Ontario for more on buying life Insurance in Ontario

Childrens Life Insurance is a part of Canada Life Insurance (click here for more articles like this)

Note: Keep in mind that insurance licensing, legislation, and policies often vary by province and most certainly by country. The Canada Insurance Source website is a free information source provided by an insurance broker from the Niagara Region in Ontario. So use this site to gain a general understanding of insurance with your own area and situation in mind. Even residents of Ontario should keep in mind that this insurance information is general in nature and the policy wordings always take precedence. Make sure you review the "please read" page.

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