Why buy Life Insurance for Children

I noticed a trend recently in the life insurance industry, where a lot of parents are asking me for protection, specifically life insurance protection for their kids. And, five years ago, I would say that most people would agree seems like a very morbid topic. I would also get the question, why would somebody want to insure their children? That’s weird. That’s a little sick. What do they need the money for? What’s the point of it? Why do you even need to — why would you even think about that? The truth of the matter is that there are some really great products out there. One of the products that I recommend for young kids is the 20-Pay insurance. Now, I don’t look at it as an insurance, so to speak, but it’s more of an investment, an investment into your child when they have a family of their own. Remember, the younger you are, the less expensive the insurance, the less risk it is for the insurance company. So if you were to take out a policy on your son or daughter, at lets say, age one to five, after 20 years, that policy would be paid up in full, and when they’re married, and have kids of their own, they’ll have something on their life for the rest of their life, paid up in full. And you will be owner of the policy, so there’s no way that they would ever be able to cancel that policy, but at the same time, you could change the beneficiary from yourself to their grandkids or for your grandkids when that happens. Your kids will thank you down the road because life insurance, the older you get, obviously, the more expensive it is, especially for permanent insurance, such as the 20-Pay. Another thing to note is that the 20-Pay has what’s called a guaranteed cash value, and when your kids reach, lets say 20 or 25, if they ever needed to use the money within the policy, they could always use it for their education, so you could cancel the policy, and — it’s almost like a forced savings for their education. You may want to think twice about that, but it’s an option, should you decide to use it for that. A lot of people don’t like to talk about this, but being a brand new father, if the worst would ever happen, you have to wonder how you would actually cope. I spoke to several parents about this, and a lot of them say that they don’t think they would be able to work, and they don’t think they would be able to function properly, and it could very well be so, and so yes, morbid as it sounds, they do get the protection because if something were to happen — hopefully it never does — and we all don’t want that to happen, but if it did, then at least they know that they have some coverage there so they could recuperate as best as they could — by taking the — I thought that this would be a good article to discuss and appreciate any kind of opinion or questions or comments that you might have

So getting back to the question why protect your kids. I guess why not. The answer would be why not — why wouldn’t you. You’re covering all your bases, you’re protecting their life, their future, you’re saving. You’re providing a cash outlet that can be used for their future as well, and at the same time, you’re protecting yourself from the worst. I don’t see anything morbid about it.

Jack Bendahan, Toronto's honest life insurance broker. Making life insurance simple and protecting your family like I do my own.