People often wonder about why or whether they should bother to get life insurance for their kids.
Let’s talk about two reasons why, and then tackle whether it makes sense for you.
The first reason is to guarantee their insurability later in life without the need for underwriting.
The basic idea here is that even if they develop a health condition early on in life, they can still get insurance at reasonable rates as they get older.
So in this case, you take out the minimum amount of life insurance you’re allowed to and add as much guaranteed insurability benefit as possible.
The second reason to consider life insurance for your kids is that if, god forbid, anything were to happen, you might not want to be forced to go back to work any time soon.
So here, you can use one year’s worth of salary or wages as your starting point for coverage, so that you’d have time to grieve without worrying about your next paycheck.
In either case, for most people the extra monthly expense is quite affordable and the extra peace of mind is worth it.
With that said, it still might not be the first place you would want to start when it comes to helping set your kids up for success. You might want to fire up an RESP first to take advantage of grants from the government, and getting critical illness insurance (especially a policy that returns your premium if nothing goes wrong) might be a higher priority.
If you want help talking through the options and seeing what sort of policies might make sense for your kids, don’t hesitate to book a meeting with me.