What is a Juvenile Life Insurance Plan?
December 1, 2022
You may have thought about or bought a life insurance policy as a parent, thinking about your family's future. A policy like this will provide your children with financial stability and a way to make ends meet in the aftermath of your death. You should also consider the benefit of juvenile coverage. Many parents don’t understand what juvenile coverage can do. That makes it easy to overlook.
What Is Life Insurance for Juveniles?
Juvenile life policies are written for minors, typically those under 18. The policy may be a permanent life policy purchased by parents or guardians of those minors. It will provide a death benefit at any age, provided the premiums are paid. Permanent life can also gain cash value. A convertible Term Life Insurance Plan is also available.
What Are the Benefits of Juvenile Life Policies?
A whole life juvenile life policy is beneficial because it provides a locked in premium for your child’s entire life. Unlike life policies purchased later in life, there is no concern with medical history or age-related policy premium increases. Juvenile life insurance policies allow you to lock in the lowest possible premiums for the duration of your child’s life.
These life policies generate cash value over the life of the coverage. That cash value is available for your child to borrow against if necessary. That provides financial security, especially since some policies don’t require cash value to be paid back, making it a valuable investment.
Many parents find that the guaranteed purchase rider option also makes juvenile policies worth the investment. A guaranteed purchase rider means your child has the right to purchase additional coverage later in life. These riders are valuable for ensuring that your child has sufficient insurance protection regardless of their future life changes.
What Other Options Are There for Life Insurance for Juveniles?
While most forms of life coverage for juveniles are permanent life policies, you may be wondering about other options. Whole-life coverage is not the only option for juvenile policies. Term life is only valid for the predetermined coverage period but may be convertible to a whole life plan at certain ages.
Think about the life stages that you want protection for and choose a term accordingly. Life insurance agents can help guide you through the different choices and the considerations of milestones with each term policy to clarify which option might be the right solution. Use that information to create a sound life insurance plan for your child and family.
It is difficult for parents to consider the mortality of their children, but it is essential to ensure financial security and prepare for any potential situation. Work with an insurance agent to build an affordable solid plan and secure the life insurance that you want for your child.
About 1891 Financial Life
At 1891 Financial Life we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.
Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.