The birth of a child is an exciting time in any parent’s life. It is a time of grand expectations, of excitement, and of new beginnings. It is also a time of incredibly high medical costs, of huge health risks, and major stress in the face of life-altering changes. When you are facing the birth of a new child there are a lot of questions that you’ll be faced with, and there are a limitless number of choices you’ll have to make. One of these choices is the question as to whether you purchase life insurance for your new born child.
The idea of losing a loved one is never something we want to think about, but it is something we always need to be prepared for. It may never be more difficult to think about the stress of losing someone dear to you than it is when it comes to a newborn child. But the reality is that newborn children are at an incredibly high risk for health issues.
However, purchasing life insurance for a newborn goes far beyond the merit of having financial support in the case of an emergency. When you purchase life insurance for a newborn, the policies are at their absolute cheapest. You can get a long-term policy at a low rate that will be paid off by the time your child is 21. This can be used as an investment method, to help support saving for college or a car for when your infant turns 16. Also, this is a great way to give your child the gift of life insurance for later on in their life, when they are looking to support their own family.
In general, children are resilient. The majority of children are born healthy and the worry of an infant death is something that never has to cross your mind again. This actually helps keep the cost of life insurance on infants low, but doesn’t give good reason as to why it might make sense to skip the life insurance option. If something were to happen, having a life insurance policy provides peace of mind. This is something that every parent deserves.
When you purchase life insurance for a child when they are first born, you are able to secure a life insurance plan before any health issues become apparent. This can keep the cost of life insurance low, even if a chronic illness presents itself later on. From an investment standpoint, taking action early on in your child’s life makes sense.
Of course, it is especially important for parents to have life insurance policies on their own lives, as this ensures that in the event of a death, your children will be supported. If you would like more information about the cost or benefits of life insurance policies, contact us.