Life insurance is something we all consider at one point in our lives, but what about our children?
Not everyone needs insurance, but if you think your child might need or want it later in life, the time to consider getting it is right now.
David Dryburgh, Insurance Advisor at Action Financial Group Ltd. in St. Thomas, says the ideal time to purchase insurance for your child is when they are born.
“Many illnesses throughout childhood can make them uninsurable when they go to get insurance on their own. If it’s already in place soon after are born, they won’t have to worry about that.”
The younger the child is the less costly the insurance will be as well as the lower likelihood that they would already have health issues.
Dryburgh says, “as a child ages, illnesses and diseases like diabetes can happen, which would make them uninsurable, so if you have insurance before any diagnosis then they will have coverage throughout their lifetime.”
Although insurance protects the child it can also ensure the parent(s) can alleviate the added pressure of financial uncertainty surrounding a child being sick.
Childhood critical insurance can provide parent(s) the ability to take time off work and cover expenses to travel to attend doctor visits and surgeries.
“It can also be used to pay funeral costs and allow parents to take appropriate time to grieve if the child were to pass away,” says Dryburgh.
There are various options for insuring a child which can be paid over a set number of years.
Dryburgh says, “it helps the child enter adulthood without the cost of having to purchase life insurance.”
It can also be an investment at the same time, creating access to finance for major life purchases.
“They can access the cash and cancel the policy which nullifies the life insurance or take a loan from the cash, so the overall life insurance policy stays in place. Everybody’s situation is different of course, but if the child wants to pay off school debt or make a down payment on a house this will allow them to do so.”
Insurance is not the only financial tool available, but it is a good one, for the right purpose at the right time.