To insure or not to insure. As adults, there is no question; life insurance is an obvious must to any financial advisor. But the subject of life insurance for children raises more than eyebrows; it raises a plethora of questions by many experts in the industry. Though covering your children with life insurance is a subject of debate in the financial industry, it’s important to weigh the give and takes about life insurance for children when trying to make the decision about whether to include it in your financial picture.
- Future insurability – By purchasing a policy early on, you secure a low premium and make sure that they are covered for life. If they develop a serious health problem as an adult it can make it difficult for them to attain life insurance later on.
- Cash Value – Paying a monthly life insurance premium can help build your child’s savings for future tuition costs or other expenses should something go wrong. However, some financial advisors point to other options as being more viable in regards to college savings as they don’t experience what is referred to as the mortality charge.
- Death benefit – Where the primary benefit of life insurance for adults is to replace lost income and to cover final expenses, life insurance for children is often used to simply cover those memorial and funeral expenses. Because the financial impact can be negligible, the purchase of a small, low-cost term life insurance policy may be preferred.
As a top-rated local® financial advisor in Naples, Advanced Wealth Advisors, strives to always make sure to guide each of our valued clients towards making the most sensible financial choices. For a full, confidential consultation about life insurance in Naples, contact us at 239-455-1100.