If you you've been following my guide to insurance plans these last few weeks, you've probably already got your personal term life insurance needs taken care of, either through your employer's policy or through an outside insurance broker.
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These kinds of life insurance policies provide benefits to your spouse and children in the case of your death. But there is more that you can do to protect your child's future - it's called juvenile insurance - also known as baby insurance, or whole life insurance for your child.
- What is Baby Insurance? Juvenile insurance actually covers your child, not you, but the benefits still go to your child. You are eligible to purchase juvenile insurance plans within a couple weeks of your child's birth.
For very small payment premiums, they provide whole life coverage for your child, and cash benefits if they are ever turned in. What exactly does this mean? It means that when your child reaches adulthood, if your son or daughter needs cash to get started at university or with a first apartment or car expenses, he or she can turn in that policy for the full value of all premiums paid by you while your son or daughter was growing up.
Alternatively, with child term life insurance from well known companies such as Gerber life insurance for children, your child can choose to purchase additional coverage once he or she reaches age 21 or 28. At that point, your child takes over paying the premiums, and the policy pays out standard term life insurance benefits. - When Should You Consider Getting Child Life Insurance? As soon as you have a child. Gerber baby insurance is available as soon as a child is 14 days old, and can be purchased at any point after that two-week mark. And there really isn't any reason not to get a baby insurance policy ? if you have the means available, you should consider it.
Your own term life insurance will help your family if anything happens to you. But in an increasingly uncertain and expensive world, a child life insurance policy is one extra way to ensure your son or daughter has some extra financial security when he or she reaches adulthood.
About the Author
Alison Overholt is a freelance writer based in New York. She holds a degree in government, with honors, from Harvard University and writes frequently about business, travel, and lifestyle subjects for national magazines and other publications.
