As parents or grandparents, we do not want to envision any adversity for our child or grandchild. But what if tragedy strikes them? How long would it take you to overcome such a loss?
Recovering from this would impose an emotional and financial burden on you. It will take time before you can get back to work and other responsibilities. But during this period your bills and financial obligations will not stop.
Child term life insurance is more like family lifestyle protection providing you with support during difficult times.
There are a few things you should consider when choosing a child life insurance plan:
- Medical tests: With a busy life as parents or grandparents, you do not want to be running around for medical tests in order to get insurance for your child. Look for plans that offer guaranteed acceptance. For some plans a simple health declaration is sufficient. Then coverage can be issued as soon as you apply.
- Low locked-in rates: Along with low rates, it is good to ensure that the rates are guaranteed not to increase as the child grows up or until the policy ends.
- Increased coverage at the same rates: Some plans also offer increased coverage at no extra charge once the child turns 21. This is a great feature, since the insured gets more coverage at a better price than if they had waited to apply as an adult.
- Conversion option: Some child life insurance plans offer options to convert to term life plans when the child reaches adulthood. Many of these conversion options are offered with guaranteed acceptance, which means that even if the child has developed any health issues, he or she can still get coverage without any medical underwriting. Purchasing such insurance positions your children to be able to obtain life insurance in the future. In other words, you have insured their future insurability.
A tip from Manulife Financial