Child Insurance: A Wise Choice

Losing a child is a parent’s worst nightmare. If the grief and shock aren’t enough there’s often the extra cost of doctors, hospitals and funeral. In addition to the health insurance usually carried through the employer many people are opting for additional insurance for their children. Just after birth, certain insurance companies will issue a policy on your child, as long as the child was not born with any complications. These insurance plans can help not only the child but the entire family.

Most people don’t consider additional insurance on a newborn. The health insurance through the employer is usually sufficient enough to cover medications and doctor visits. Life insurance, though, is different. Should something ever happen to the baby all expenses will be paid for when you have insurance. And if you already have life insurance through your employer for the child it’s usually just enough to cover the funeral expenses. An additional policy will allow you to cover your expenses during a lengthy grieving period.

Some companies offer a policy that will double when the child turns 21. If you originally had the child covered for $5,000 the policy will then be worth twice that. The child, at adulthood, can then take over the policy for future needs. Or the parent can continue paying the premiums to help the son or daughter’s family if the need ever arose.

Look for a policy that offers cash value. After paying in premiums for a year or so many policies offer the option of withdrawing cash from the premiums paid. In an emergency ready cash is always good, however, the cash advance usually requires 30 days or more to arrive.

When these policies are held for 15 to 20 years, and all premiums paid on time, the policy allows for a cash-out sum equal to all premiums paid during the length of the policy. This can give a child a great start in life should they decide to cash the policy. If the policy is kept rather than cashed out the young adult has the option of adding to the policy making it worth much more.

Rates for children’s policies are much lower than adult policies, sometimes as little as $4 or $5 a month. Do a little research to make sure you’re getting a good policy with a reputable company. Too many insurance companies make big promises but the truth comes out later when you’re unable to get the monies owed you.