Juvenile Insurance – Why You’re Never Too Young to Secure Your Future
August 8, 2019
You make sure they eat their veggies, do their homework and go to bed on time. As a parent, you work so hard to keep your child safe and secure, but have you thought about their financial security?
A Great Start
Many parents rely solely on a registered education savings plan (RESP), which is a good start. However, juvenile insurance can enhance your child's financial security because it combines savings and risk management into one single policy. Given your child’s young age and their relatively good health, juvenile insurance can be quite affordable; even a small amount of premium can generate additional investments inside a permanent life insurance policy. Moreover, purchasing a life insurance policy for your child when they are young will secure insurability for their lifetime, allowing them to easily acquire additional insurance in adulthood when they want to insure for the financial well being of their own family.
We cannot foresee the future. Your child’s health, lifestyle and career choices later in life may make them uninsurable or subject to higher premiums, but by locking in their insurance rates at an early age for the coverage purchased in childhood, and locking in their health status for future optional insurance purchases, such obstacles can be eliminated altogether and provide them with coverage for life. When your child comes of age, they can assume policy ownership, all the policy benefits including any cash values and future insurance purchase options, as well as responsibility for any remaining premium payments scheduled. Many juvenile plans even have quick pay options, giving you the ability to fully pay up the policy before passing it on to your child.
Investing in Their Future
Permanent life insurance with cash values and critical illness insurance with return of premium are two common juvenile coverages that you and your advisor may consider. They do not have to be large amounts either; an insurance plan can be built around your budget. And due to the limited underwriting involved, juvenile plans are usually easy to set up and quick to settle.
Additionally, the cash value on life insurance or the return of premium on critical illness insurance can be accessed by your child to help fund their university costs or even make a down payment on their home - juvenile insurance is not restricted to a post-secondary education like an RESP, making it an excellent way to enhance your child’s financial security.