Term Life Insurance for Children
Life insurance policies aren’t only for those who are employed and covered through a policy sponsored through their workplace; they are also for children. Purchasing term life insurance for children may seem a difficult decision to make but it is one that will provide the assurance of knowing should an unforeseen tragedy occur your family won’t be financially as well as emotionally devastated. Losing a child is one of life’s most difficult events and also one that parents and caregivers would rather not think about. Far too often, however, people have discovered that the emotional pain of losing a child is so encompassing that it is difficult to focus on other things, especially a lack of finances to cover needs during such a tragic time.
Trying to deal with a financial aftermath after losing a child, or not having the resources to provide a funeral or casket during a time of extreme grief and sorrow can not only prolong the grieving process and lead to extreme depression; but should the finances not be there; the burden is especially troublesome. Though not something people want to think about, choosing a life insurance policy is the best way to make certain you are financially prepared for tragedy should it occur. All families can choose term life insurance for children as these policies are less expensive than whole life insurance policies.
Term life insurance is purchased for a designated time period or set number of years and is selected at a fixed rate. The majority of term life policy holders are young families that need the assurance of knowing should something happen to a member in the family, the associated financial expenses will be provided for. It’s also important to note that the majority of term life insurance policies (including term life insurance for children) are never claimed. These policies are for the security of knowing that an unforeseen event, accident or tragedy will not destroy your financial situation and that the costs associated with funeral and burial will be provided.
The differences between term life and whole life insurance policies are several but two of the most notable are that term life insurance is not an investing tool while whole life insurance is. Additionally, term life insurance rates are fixed while there is more flexibility and opportunities for the insurer to raise the rates of whole life insurance policies. It’s important to understand that should you purchase a term life insurance policy and the policy expire without needing to make a claim; you will not receive any money from the policy. You will contribute monthly payments to the term life insurance policy and when the policy expires that’s it- the policy is over and you are not owed anything, nor can you make a claim. Whole or universal life insurance policies are different as you will receive the benefits eventually.
Another difference between term life insurance and whole life insurance policies is in the amount the benefit pays. When a term life insurance policy is claimed, the cash value or payout is what you have paid into the plan and you will know how much you are going to receive as a beneficiary. Term life insurance policies cost less than whole life insurance policies making them a suitable choice for those who have families, are supporting a number of different people on a fixed or limited income, and expect their living situations will change over a course of 10, 20 or 30 years. Those who purchase term life insurance policies are unable to borrow money from the policy; however, as whole life insurance policies are a savings investment, those policy holders are allowed to borrow from the policy. Most term life insurance policies (including term life insurance for children) are issued in terms varying between 10, 15, 20, or 30 years.
Many choose not to renew the policy as renewal will mean an increase in premium rates. It is better to go with a longer policy (such as 20 or 30 years) rather than choosing a 10 year policy and planning on renewing it. Because term life insurance policies are not savings tools but are fixed, they often don’t require physicals or medical screenings for approval. Many find that the process of obtaining term life insurance is much simpler than choosing whole life insurance policies. Whether choosing term life insurance for children or for adults you’ll find that this type of life insurance is a perfect choice for families or those who need plenty of coverage at an easy, affordable price.