 | Shon Chapman
has been offering quality insurance coverage for over four years. After receiving his Bachelor of Science in Sociology from Kansas State, Shon moved to Wichita and worked as a private investigator before entering the insurance industry. Shon enjoys playing golf and spending time with his wife and two children, Andrew and Caroline. He is currently an agent with American Family Insurance, offering multi-line coverage including Life, Home/Renters, Auto, and Commercial insurance. Shon holds licenses in all of these coverages for the states of Kansas and Missouri, with his primary office located in Wichita. You may contact him at (316) 721-3800 or by e-mail at schapman@amfam.com |
Insurance
2004-08-01 11:51:00
Life insurance for a child?
Question: I was told that it is not necessary to carry a life insurance policy on my child, but everyone I know has them. Do I need it or not?
ANSWER: The simple answer would be yes, you do need to carry some coverage on your child, if not for you, then for your child's benefit. Many people (even some agents) are reluctant to talk about the importance of life insurance. For obvious reasons, people are very uncomfortable discussing death and the effect it could have on their family. This is even more difficult for some people who find it "morbid" to discuss planning in the event of a child's death. However, there are several good reasons to plan ahead. First, (and most obvious), is that life insurance does provide a death benefit that can be used for burial and other final expenses. Generally speaking, life insurance provides a lump sum than can be far more than the total amount of premium paid in, even during the course of many years of premium payments. Eventually we all die. Why pay full price, when you can purchase the benefit for a small monthly premium at just pennies on the dollar?Second, many times parents like to "lock in" coverage for their children. This can be done for both medical and financial reasons. As you know, life insurance becomes more expensive with age. By purchasing a policy at the earliest possible age, you lock in a low rate for your child to take over when they start paying the policy. Or better yet, it may be economical enough that you can "pay up" the policy in 10 or 20 years. The policy would then be in force for the child's entire life with no further payments due on it. On the medical side, it is simply a question of locking in your child's health now. Many parents simply don't want to take the risk that their child may need coverage later but be unable to qualify because of a medical reason or even an accident. Many times, companies have fewer underwriting requirements for children under 18 years of age.
