BeamaLife Blog

Since the main purpose of life insurance is to protect against financial loss when someone dies, it’s not required to purchase life insurance on child as there will be no loss of income.  Although your child’s death would be a tragedy, it would probably not affect your family much financially unless he or she was earning a substantial amount of income for the family.

However, there are a few reasons why you might purchase children life insurance, you might buy life insurance on your young child so you can take advantage of the rates, which are lower for healthy children than for adults. Purchasing a policy while your child is healthy can also guarantee that your child will be protected throughout adulthood, even if he or she becomes ill, works in a hazardous occupation, engages in dangerous activities, or becomes uninsurable for other reasons.

Some parents also buy life insurance for children to cover the time period when they are paying for their children to attend college or graduate school. If a child dies during this period, the death benefit can be used to help pay off college debt. Finally, if you can afford to buy permanent policy like whole life insurance for your child then it will be the best gift you can ever give to your child.