Insuring a Child

Life insurance is something we all consider at one point in our lives, but what about insurance for 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.

Many childhood illnesses, such as diabetes, cancer, cystic fibrosis, for example, can make someone uninsurable. If insurance is already in place soon after they are born and before any illnesses affect their future insurability, they won’t have to worry about being declined when applying for insurance at an older age.

The younger the child is at the time of insurance application, the less costly the insurance will be as well as the lower likelihood that they would already have health issues.

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 illness insurance can provide funds so that parents can afford to take time off work and cover expenses to travel to attend doctor visits and surgeries.

Or if the worst were to happen and a child passed away, life insurance can be used to pay funeral costs and allow parents to take appropriate time to grieve.

Some insurance policies have an investment component as well, creating access to finances for major life purchases. Parents or grandparents can fund the policy and later transfer the policy to the child.  

The child 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. An insurance advisor can help determine if there is a need for children’s insurance, and if so, the right product.

We hope you will find this information valuable and will increase your financial confidence. You can always find these articles on our website www.actionfinancialgroup.com.


Karin Rimnyak, Certified Financial Planner®
Investment Advisor, iA Private Wealth
Insurance Advisor, Action Financial Group Ltd.


David Dryburgh, Certified Financial Planner®
Investment Advisor, iA Private Wealth
Insurance Advisor, Action Financial Group Ltd.


Ian Barrie,
Certified Financial Planner®
Investment Advisor, iA Private Wealth
Insurance Advisor, Action Financial Group Ltd.


This information has been prepared by Karin Rimnyak who is an investment Advisor for iA Private Wealth. Opinions expressed in this email are those of the Investment Advisor only and do not necessarily reflect those of iA Private Wealth. iA private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. iA Private Wealth is a trademark and business name under which iA Private Wealth Inc. operates.

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