Should you purchase child life insurance?

 If you’re a parent or grandparent who is thinking of purchasing a life insurance coverage for a child or grandchild, here are some important considerations that may help make your decision easier. 

Advantages of child life insurance:

• If tragedy were to strike, how long would it take your family to overcome such a loss? People may need to take time off work to mourn, but during that period bills and financial obligations do not stop. Having a child life insurance policy in place could help give your family an extra financial cushion to fall back on during this difficult time by providing you with a tax-free, lump sum payment.
• If your child or grandchild develops medical issues while they’re growing up they might have trouble qualifying for life coverage later. Purchasing life insurance for them now, while they’re young and healthy, that allows you to convert their coverage to a higher value term life plan when they reach adulthood, helps protect the child’s future insurability, no matter what tomorrow brings. 
• Although it’s tough to even think about it, the reality is that if the unthinkable were to happen to your child or grandchild there will be both an emotional and a financial cost to your family. Having child life insurance coverage in place will help ease this burden by providing money for funeral expenses and other costs such as medical bills.

What to look for before you buy child life insurance:

• With the busy, non-stop lives most of us lead today, few people have the time to take a child for a series of medical tests so they can qualify for life insurance coverage. You can make it easier on yourself – and the child – by looking for plans that offer guaranteed acceptance. With these plans no medical tests or details are needed – just sign a simple health declaration attesting to the child’s good health.
• Along with dealing with an insurance company you know you can trust, look for a policy that offers you low rates that are guaranteed not to increase as the child grows up (or until the policy ends.)
• Some plans also offer increased coverage at no extra charge once the child turns 21.