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You might be wondering why someone would get Houston, TX whole life insurance for children. While no parent ever wants to entertain the thought of losing their precious child, it happens all too often. Between sickness, accidents, and terrifying events around the world, it can easily cause a parent to fear the worst.
Taking a life insurance policy on a child may be unheard of to many, but it is not as uncommon as you might think. Many parents have considered and purchased life insurance policies for many reasons. As odd as it might be to think about, not all the reasons for having Houston, TX whole life insurance for children are grim.
Reasons for Having Houston, TX Whole Life Insurance for Children
One reason a parent might take out a life insurance policy on their child would be to secure their insurability. When we are young, most of us do not think about having health problems and mobility issues.
Most of us feel pretty invisible and do not think twice about planning for our future. This goes for life insurance. Getting a life insurance policy when we are young is the best time for us to get a life insurance policy simply because that is when we are in our best health and will get the lowest rates. The better health you are in, the cheap the cost is for you.
However, when you are older, your body will break down, and that is when most of us will think about getting a life insurance policy.
Well, why not start when a child is typically at their healthiest. Getting a whole life insurance plan on your infant or toddler can last their entire life. They won’t have to worry about it when they are older and possibly have to get approved simply because of some health problems. So long as the premiums continue to get paid each month, that whole life insurance policy stays in effect.
Another reason is because of the saving component that comes with whole life insurance. This type of policy has what is called a cash value. This cash value will continue to grow over time, and if your child needs financial help when they are out on their own, they can draw on it if they need to.
This could be for a college fund. However, there are drawbacks to drawing on a life insurance policy. Therefore it is important to fully understand the terms and conditions and the consequences when borrowing against the policy.
If you do decide to get a policy specifically for your child, there are certain things you need to consider before doing so.
What You Need to Know
In order to get a life insurance policy for your child, there are a few things you need to know first. It is important to know that you as the parent may need to have a life insurance policy that is of equal or greater value to your child’s policy. If you do not already have a policy, you may want to consider getting one as well.
Parents, grandparents, and legal guardians may all purchase life insurance policies for a child. However, the parent may have to be the one to sign off on it first.
Children typically need to be at least fourteen or fifteen days old before purchasing a life insurance policy. These policies will typically last until the child is in their teens.
Some policies may last until they are thirteen or fourteen, while other policies may last all the way to twenty-one years old. After that time limit, if you wish to continue the policy, the child must then sign off on the policy as well. It is at this point in time that you can add to your child’s policy.
Something your child may be able to benefit from when they become an adult themselves is the use of living benefits. Living benefits are basically “death benefits” that your child will be able to access while they are still alive. More like than not, your child will encounter some type of financial hardship in their life. It happens to all of us, and we, as parents, would like to help our children out as much as possible.
With this particular policy, your grown child has a bit more financial stability that they can access while they are alive. This is not a stand-alone policy. In other words, this policy is only available for existing policies.
Plus, you or your child do not need to be terminal to access these benefits. There is a wide misconception that one must be terminal to access living benefits. It also must be noted that when someone borrows against this policy, it can reduce the payout that the beneficiary can get.
A payout is the benefits that a beneficiary will get when the policyholder passes away. The more money that is drawn out from this policy, the less money the beneficiary will get.
Most of these living benefits do not have to be justified when borrowing against them. Therefore, when your child becomes an adult and needs to borrow against their policy, they do not have to justify their reason for using the money. They can use this money for a vehicle, college, paying for an apartment, or even unexpected medical bills.
There are many pros and cons to getting a life insurance policy, as well as purchasing add-ons. It is important to fully do your research and speak with an insurance specialist at Best Life Insurance Houston. We can provide you with all the information you need about whole life insurance, along with any other insurance policies you may need. Give us a call today, and ask about our Houston, TX whole life insurance for children.
Fun Facts for Houston, TX
- The Art Car Museum in Houston is a must-see for anyone who loves cars and art. It showcases a variety of cars that have been transformed into works of art, including a gigantic bunny, a bull, and a giant red high heel.
- The spikes in the Lights Spike sculpture outside Terminal E at the George Bush International Airport are arranged in a way that symbolizes the distances between Houston and the capitals of the countries represented by the flags.
- There are over 145 languages spoken in Houston, making it one of the most linguistically diverse cities in the world. Spanish, Vietnamese, Chinese, Hindu, German, and even Tagalog can all be heard on the streets.