Posts tagged ‘life insurance for babies’

Baby Life Insurance: A Lifetime of Protection

When parents have a baby or about to have a baby they are bombarded with lots of new information. Information on how to care for their newborn, schooling ideas as well as baby life insurance, and that is just the beginning of things they have to take into account. When parents first see baby life insurance a lot them either immediately makes a decision on if they think it is right for them or not. However, I have heard that most people don’t read all the information before making that choice. So here is a quick idea about what baby life insurance is and how it can help you to feel more at ease.

Baby life insurance was started to help parents prepare for the best and worst possible outcomes. So don’t go into thinking it is just about protecting them if something horrible happens to their child. It is also a way to start your child financially with a great start. When buying coverage for a baby, the first thing you need to choose from is term or whole life insurance. Most people choose the whole life insurance. The reason for this is that it covers the child’s whole life, as even as they get older and become of age the policy simply transfers under their name solely. Plus the rates are inexpensive so that is always a plus. The plan of course is an insurance protection plan so if something unthinkable does occur the policy will help cover any burial costs that may come to pass. This is a big help with parents because it helps create peace of mind. With some plans you can incorporate things such as building cash value. Building cash value plans allow that after a certain age the policy’s cash value will be either equal or greater than 100% of all premiums paid and able for the child to tap into if he or she needs to. There are also extras such as doubling coverage’s where after a center age the coverage automatically doubles without your premium changing. All different types of features and reasons are what helps parents feel at ease without huge out of pocket costs.

Baby life insurance is always a good investment. You are starting your child out with the financial protection that can last him or her a lifetime. With low current rates you will find that this protection is easy and not painful on your pocketbook either. Parents always want to protect their children and with baby life insurance you can. It is easy to sign up and can last as long as you want. Look and research the plans that best fit you and your family. Decide what will work best for you and make the choice.

Life Insurance for Babies

Typically we think of life insurance as something needed for older individuals. As breadwinners, caregivers, and providers, we like to provide for the unfortunate occasions when an individual can no longer provide for his or her family. However, life insurance is available even for the very young. Is it worth it? What does it cover? And should you consider buying it?

Planning for Loss

Life insurance is protection against loss should the unthinkable occur. The last thing parents want to think about is losing their child. Unfortunately, it does happen, and the costs are always unexpected. Life insurance can cover funeral and burial costs, often the last things a parent wants to prepare for when welcoming a new life into the world. Further, if a child develops conditions that would affect insurability, by locking in a life insurance rate early, parents can circumvent the difficulties of acquiring higher risk insurance in the future.

Protection for Life

What’s unique about life insurance for babies though is that it allows you to lock in a low life insurance premium for the duration of the child’s life. By beginning early and maintaining coverage, parents can help lay the groundwork for a child’s adult financial security. When the child turns 21, ownership of the policy transfers seamlessly to the now adult, and still retains the low premiums their forward-thinking parents locked in.

Added Cash Value

As an added benefit, most baby life insurance plans accumulate a cash value that will gain interest over the lifetime of your child. It acts as an additional savings plan against which you or your child can borrow in the future. You can help pay for college, help the family through future lean times, or simply accumulate interest until you need the extra money.

The Criticism Against Baby Life Insurance

Many financial analysts are critical about acquiring life insurance for those who provide little if any financial assets. They rightly point out that the costs of insuring children often outweigh the benefits they might receive. Also, while locking in a low cost may help if your child develops a condition that makes him or her a high insurance risk, the chances of this are so low as to almost mitigate the benefits won by paying for insurance.

Better Options

Parents better serve their and their childrens’ interests better by investing in quality health insurance and savings accounts. Using the same money that would go toward a life insurance premium can go into a 401k investment plan or even just federally guaranteed savings bonds. If you insist on buying life insurance, go with a term life insurance plan rather than a whole life insurance plan and invest the difference in savings or supplementing your own insurance. After all, chances are greater that something will happen to you rather than your child.

Having a baby can be a stressful and overwhelming time for a new parent. Too many people are willing to prey on the anxieties of nervous parents and their tendency to worry about the worst possible outcomes. Life insurance for babies, though, is rarely worth the cost for those who cannot afford it – but can be a great investment for those who can.