Why would anyone want to buy a life insurance policy on a child or grandchild other than to cover final expenses?
There are several reasons why people would want to buy a permanent or term life insurance policy on a child or grand child. Guarantee the ability to obtain affordable life insurance in the future First, if permanent life insurance (i.e. whole life insurance or universal life insurance) is purchased at a very young age the insurance company will often guarantee the child the right to buy more life insurance later in their life at regular intervals without providing any evidence of insurability. In other words, if you buy a little now, you are guaranteeing your child’s right to buy more life insurance with no medical exam and without having to answer any health questions. If the child later becomes ill, or uninsurable, these privileges could be the only means to obtain the coverage needed when the child becomes an adult. Example: One major company offers a rider to a certain whole life insurance policy which allows the insured to increase their life insurance coverage by purchasing up to
There are several reasons why people would want to buy a permanent or term life insurance policy on a child or grandchild. Guarantee the ability to obtain affordable life insurance in the future First, if permanent life insurance (i.e. whole life insurance or universal life insurance) is purchased at a very young age the insurance company will often guarantee the child the right to buy more life insurance later in their life at regular intervals without providing any evidence of insurability. In other words, if you buy a little now, you are guaranteeing your child’s right to buy more life insurance with no medical exam and without having to answer any health questions. If the child later becomes ill, or uninsurable, these privileges could be the only means to obtain the coverage needed when the child becomes an adult. Example: One major company offers a rider to a certain whole life insurance policy which allows the insured to increase their life insurance coverage by purchasing up to
