What’s the most important thing in your life? Is it your career? Or is it your very own family? If you answer yes to the latter, well you’re just one of the millions of people who regard their family as the most important part of their lives. Without family, their world seems to be lifeless, meaningless. That’s why, they do everything to make their families feel that they’re important – they work hard to provide their needs, they spend time with them, and they do things to insure their future. How about you? Do you do all these things too? For sure you do. And as you work hard to earn a living, your children’s future is often the best motivating factor that drives you to reach financial success.
People have different reasons why they go to greater lengths in terms of their career. But whether you are a young or an old couple, chances are the main reason why you work so hard day in and day out is because you want to ensure your children’s success. So as early as now, you think about their college education, and you provide them with their basic needs from foods and shelter to clothing and education.
Yes, it’s quite understandable why you simply want to give everything to your children. But that doesn’t mean that your earnings should only revolve about their current needs or their future education – you should also consider some of the unexpected events that might strike them like sickness or accident.
Accident and sickness may not be the best thoughts to have right now, but no matter how scary these topics may be, it’s always best that you have some form of preparation for your children in case any of these strikes. So, this is where life insurance for children comes into play.
How Important is Children’s Life Insurance?
If you have such a busy work schedule right now, it can be so easy to disregard life insurance for children. The same is true if you already have some form of insurance for yourself. But this shouldn’t be the case since your children, whether you want it or not, may also get sick or get injured in an accident at some point in their lives. So as parent, it’s highly significant that you have this insurance for your children on top of the other insurance types that you already have.
Now, you might ask, “What are the benefits that me and my children may get from this type of coverage? Listed below are some of the reasons why it’s always a good idea to have life insurance for children.
1. Provides financial assistance when sickness or accident strikes.
Do you know how much hospitalization costs these days? From laboratory procedures and medications to emergency room expense and daily hospital room costs, you need to cover all these costs if your children get sick or get injured in an accident. Now, the question is, “How prepared are you for these unexpected things of life?” Illness, for one, can bring a huge impact not just physically and emotionally but also financially. And if you don’t have an emergency fund, how do you think you’ll be able to cope with all the financial burdens incurred by sickness? The same is true if accidents strike, “Where do you turn to for financial assistance?”
Yes, you may have savings, but do you think the amount would suffice for all the hospitalization costs? What’s the next step then if you’ve already consumed all your life savings for these – sell assets to have cash? Do you really want that? Or perhaps, borrow from relatives or friends, or take out a loan? Life insurance for children prevents you from going through all these measures. With the payout you’ll receive from your claim, you get the financial assistance you need, right when you need it.
2. Acts as income replacement.
Depending on how serious your child’s illness is or how grave his injuries are, at times you need to take some time off work to take care of your ailing or injured kid. Now, if you are the sole breadwinner in the family, this may be very difficult, as the whole family is dependent on your income. But this won’t be a bit of a problem if you’re covered by children’s life insurance. This type of insurance will cover not just your children’s hospitalization costs but also the other costs that you might incur for rehabilitation and daily living expenses.
3. Covers final expenses.
If worse comes to worst, you can’t deny the fact that there are also expenses that go with death. No matter how scary this may be, your child’s death may bring you not just physical and emotional stress but also financial stress. Dealing with the emotional stress may be easy, but dealing with financial stress can be very excruciating if you’re not covered by life insurance for children.
Funeral expenses, for one, can cost you a lot, so if you don’t have this type of insurance, where will you get the amount to pay for these? Take out a loan? Well, that’s the least that you can do, but do you like the idea of having debts just to bury your child? No, right? So it’s really a sound decision to get coverage.
4. Can be used for college education.
Life insurance for children goes beyond providing financial assistance during sickness, accident, or death. It goes as far as helping pay for your children’s college education. If the coverage you get has cash value component, you can always make use of that cash in the future to pay for college education. And you know what’s more exciting about this? The cash value usually builds interest and can be accessed tax-free, providing you more benefits than you know.
5. Can be a collateral.
Some insurance companies provide life insurance plans that can be used as collateral if you want to take out a loan. So in case your children think about securing a loan in the future, they can make use of this to apply for one.
Buying Life Insurance for Children Made Easy
Upon knowing all the benefits that go with children’s life insurance, now are you ready to buy one? If yes, then you may want to talk to your insurance provider if you can have this as an additional feature for your life insurance coverage.
It’s actually quite easy to obtain this type of insurance, as most insurance companies do not require clients to go through medical or blood tests. Also, this costs a lot cheaper than the life insurance that adults get because children are expected to live longer. But to be eligible, your child has to be 2 to 17 years old and must be an Australian citizen.
You also have to note that benefits provided by this insurance automatically expire when your child becomes 21 years old. But the good news here is that you do have the option in case you want to convert this into a life insurance policy for adult. You can actually do this when your child is as early as 18 years old, so be sure to discuss this option with your insurance provider before buying.
There is really more to life insurance for children than what you already know. So, are you up for the benefits? If your family matters, then why delay securing their future? Get a a Children life insurance quote today.
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