Most people do not consider buying life insurance until they are married or have children. If you are single and have no children, buying life insurance may not be at the top of your priority list. A minor of any age can take out life insurance indirectly as a gift or can be transferred by an adult.
What is the best age to buy life insurance?
In essence, the younger you are, the cheaper your premiums will be. If you have family members who depend on your income, you should have life insurance. You can work and provide support to your parents, spouse or children, and if you were to die suddenly, it would give them serious financial problems. In these cases, it is very affordable to buy insurance with premiums in the range of 20 to 30 dollars per month for young, healthy individuals.
Life insurance can be purchased for children. These policies can be beneficial to the child as they reach maturity, as they can take over payments and keep coverage in place. An entire life insurance policy builds cash value over time and can be an investment that helps pay for college or other needs. An entire life policy has locked insurance when a child is young and healthy, even if a health problem develops later. Many parents choose to buy a whole life insurance policy for a child for this reason alone.
Children's life insurance: The whole life policy for children
The benefits of buying a full life insurance for a minor include:
- Permanent insurance with lower premiums
- Cash value builds up over time
- Let your child be insurable, even if a health problem develops later
- Loans can be taken from the insurance after the cash value has accrued
- Locks in lower premiums
A life insurance is an agreement between the insurance owner and the insurance company. If the premiums are paid on time, the insurance company is obliged to pay a death benefit if a child dies unexpectedly. A life insurance policy purchased for a child insures the child, but the policyholder is the buyer, whether it is a parent or grandparent.
It is easier to buy a full life insurance policy for a child than for an adult, and most insurance policies do not require a medical examination. You can buy a whole life insurance for a child who is 17 years or younger. When your child reaches maturity, you can transfer ownership of the insurance to the child and he or she can start paying the premiums.
What's Right For You?
If you are considering purchasing a life insurance policy for a minor in your family, we invite you to meet one of our friendly local agents. We will go to great lengths to find the best policy for your budget. We will search the market to find the perfect whole life policy for a child and will take all the time you need to answer your questions carefully and honestly.