The subject of whether to purchase juvenile Life Insurance in Wellington OH can be a touchy one. The idea of one’s children passing away is horrifying. Many young adults could not afford funeral expenses if the worst were to happen. What do financial experts advise?
Relevant Statistics
Statistically speaking, parents rarely outlive their children. When this happens, the children typically have reached their senior years and the parents have lived well into their elderly years. The main reason why financial experts tend to discourage buying Life Insurance in Wellington OH for kids. Nevertheless, an article in Forbes reports that about 20 percent of adults purchase this type of insurance.
Sometimes the grandparents do this to protect their adult children if a grandchild were to pass away. Otherwise, their adult children would face the extra stress of coming up with a large amount of money and the possibility of financial ruin.
Term vs. Whole Life
When parents do decide to buy juvenile life insurance, they typically choose a temporary policy instead of a permanent one. In insurance lingo, these products are known as term life and whole life. Temporary policies have relatively low premiums and are renewed at the end of each term. Permanent policies are expensive because they accumulate cash value over time, but people generally earn more by investing the money elsewhere.
An Affordable Product
Because the risk is so low, juvenile term policies are extremely affordable. A term policy for a middle-aged person might cost $25 a month for $25,000 of coverage, but for a child, the entire annual fee might only run $25 or $35, depending on the company. That low cost can make buying life insurance for a youngster a very reasonable decision.
When parents decide to purchase a life insurance policy for a child, they will want to work with an organization such as Schlather Insurance Agency. Independent agents help customers by providing options from more than one insurance company so they can choose a policy that is best for their circumstances.
