Life Insurance for Children? | Shelter Insurance®

Life Insurance for Children?

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It’s human nature to avoid thinking about death, which is why nobody likes to think about life insurance—especially life insurance for children. However, there are actually good reasons to buy life insurance for a child. Shelter’s Manager of Advanced Life Insurance Sales, C.K. Hoenes explains, “There are two important reasons to discuss Life insurance for children. The first is guaranteed insurability, the second is locking in a low price.”

Guaranteed Insurability
Guaranteed insurability allows an owner to purchase additional life insurance coverage later in life without having to prove insurability. This may come in the form of a conversion option on juvenile term plans or be added as a rider to many permanent plans. The distinction between the two is important and should be considered when guaranteed insurability is your goal. Most juvenile plans only give a conversion option at a specific age, and if not exercised at that time, the coverage is lost. In contrast, whole life plans with a guaranteed insurability rider often give offers for additional coverage at several ages or events in the future. If an option is not exercised, you can select additional coverage on the next offer as long as the original policy is kept in force.

Lower Price Lockdown
The best time to lock in a price on permanent life insurance is when the insured is young and healthy. The price for whole life coverage on an infant is significantly less than on someone in their 30s, when many first consider purchasing it. The price on whole life insurance is locked in for life and does not increase with age. Imagine how it would feel to pay a rate for a 1-year-old when you are 80 years old. When a parent or grandparent purchases a whole life policy for a child, it is a great gift and significantly reduces the child’s cost for permanent life insurance in the future.

Shelter Has Options
Shelter offers five life insurance options that may be good for a child:

Each of these policies has its own advantages and the one you choose will depend on many variables. Your Shelter agent can help you select the option that works for your needs.

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The product information contained on this website is informational only and not a statement of contract. All coverage options are subject to the provisions of the policy purchased and details of the policyholder's situation.

Shelter Life Insurance Company, 1817 West Broadway, Columbia, MO 65218