Child life insurance isn’t just cover for if the unthinkable happens. It can also make a lot of financial sense for a number of reasons. We take a look at why.
What would you do if the worst possible thing happened? No, not a natural disaster or WW3, but the death of a child?
As parents, it’s our worst fear. We wouldn’t be able to go on, yet, we’d have to for the other members of our family. Now imagine you’re in the midst of all that and you have to figure out how to pay for a funeral.
On top of whatever costs were involved with healthcare if you lost your child to sickness. That’s a lot of money. Even child caskets range in the thousands.
That’s why you should consider taking out a child life insurance plan. It may feel like bad luck or unnecessary, but wouldn’t you rather have that safety net?
Here are the reasons we think child life insurance is worthwhile below.
Child Life Insurance
How does it work? Child life insurance works like any other policy, except it has an expiration date. And not in the morbid way an adult’s policy would.
Most plans term out when the children are 18 or 20. You can choose the length of the term based on what you want/can afford.
The good thing about these expiration dates is that you can convert them. Say your child turns 20 and terms out of their child insurance. You can then convert that plan into a life-long policy.
A Word of Warning
We hope you choose to insure with us, but there are people out there (not us) who try to guilt parents into taking plans. You’re not a bad parent if you decide against it.
You may be a little less prepared, but it won’t make you love your child any less. If an agency tries to tell you that you have to do it because you love them, run far away.
Does It Save You Money?
Yes, or we wouldn’t sell it to you. From healthcare costs to funeral bills, what you pay on your policy is pennies compared to end of life costs.
Okay, now that we’ve covered the basics, let’s talk about what you’d use a child policy for. The first thing that comes to peoples minds is the funeral.
Funerals
Funerals have become very customizable in the last 20 years. You can choose the make and model of a coffin, their final resting place, how they’ll be prepared and so on.
But those choices come at a cost. A burial plot usually costs around $1,000 — depending on the location. That’s without factoring in the headstone.
Want a nice one made out of granite? That’s another thousand, at least. Add in the casket and you’re easily looking at $5,000.
And you’ll still need someone to dig the grave and do the dirty work (so to speak). The average cost of a funeral is $11,000 according to HuffPost.
If you have a life insurance plan, that can cover the costs of the service and then some. With the insurance money, you can opt for the more expensive funeral choices and know that your child has a peaceful and beautiful place to rest.
Medical Bills
Unfortunately, with the way healthcare is right now, bills really add up. It seems unfair that care you desperately need can leave you paying hospital bills for months.
The average ER visit, without insurance, costs around $3,000. And that’s if someone doesn’t need critical care.
Can you imagine losing your child and then being sent a five-figure expense bill, even though they couldn’t save them? Having a life insurance policy can’t restore your faith in medicine, but it can help with the bill.
Counseling
Another thing people don’t think about after death is how they’re going to process loss. It feels like there’s nothing you can ever do to feel okay again.
Anyone who loses a child should get grief counseling, but it can be expensive. Many insurance plans don’t cover therapy under their umbrella of care.
But you can pay for help with the life insurance policy. The whole family can benefit from therapy, other small children included.
Therapists who work with children understand that they may process loss in a different way than an adult. It’s worth having a professional to help guide your family through the pain.
Future Benefits
Having a life insurance policy for your child isn’t just about the short and possibly tragic game. It’s a long-game decision as well.
Having a preexisting policy can help children get more coverage more easily in the future. As adults, they can use their policy if they develop a condition that would make coverage difficult to get later.
You never know what’s going to happen with the government regarding healthcare and pre-existing conditions. That’s a big reason why parents are opting for coverage — to at least give them some peace of mind.
Let’s say that down the road, your adult child has a crisis and they need money. They can borrow against their life insurance policy at a better rate than a personal loan.
You both should still have an emergency fund, but it’s nice to have a cushion if you need it.
Wrapping Up
It’s hard to even read words that mention your children dying. We get it! It’s not our goal to depress you or be morbid.
Quite the opposite, we’re here to make the hard times a little bit easier, were they to come knocking. Let us know how we can serve you with a child life insurance policy.
We’re ready to answer any questions for you here.
