Protecting your children becomes a top priority when you become a parent, which is why parents consider getting life insurance to protect their financial future. But is it possible to take out life cover for your child? Here is what you need to know.
Can you take out life insurance on your child?
The answer is yes and no. No in the sense that you need to be 18 and older to be able to take out life insurance as the main member. However, other insurers do offer policies that you can have in place that can be placed under your child’s name and will be paid out once it has matured. They also allow you to take out the funds from a policy once your child has matured to ensure that they are financially covered.
You can include them in your policy
One of the ways in which you can ensure that your child is financially protected is by having life cover and listing them as one of the beneficiaries. You can choose whether they get 100% of the payout or if it is split up into various percentages if you have other children. Remember to update your policy whenever there are major life changes such as giving birth to another child or if one of the beneficiaries you have listed has passed on.
The thought of your child passing on is something that no parent wants to think of, let alone endure. However, life is unpredictable and can sometimes deal a hefty hand. You can cover your child through a funeral cover to ensure that the funeral expenses will be taken care of instead of having to stress over it.
Taking care of their medical needs
Being able to take care of your child’s medical needs is also crucial when it comes to building a financial safety net. Having cover such as our MiLittleLife product will take care of the medical needs or any childbirth complications that come with a new-born.
How will life insurance benefit your child?
Your life insurance payout can come in handy in various situations when you are no longer around to provide for them. The benefits of having your child as a beneficiary on your life insurance are:
Education. They will be able to use the payout towards taking care of educational fees.
Daily expenses. You don’t have to worry about their daily expenses such as groceries, paying utilities, transport, and clothes.
Medical fees. They can choose to use the payout to take care of any medical fees that may arise.
Once the payout has been made they can choose to use it as they see fit. To avoid having your life cover remain unclaimed, it is vital to inform your beneficiaries, or have it stated in a will to ensure that it is paid out to the correct people.