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Life Insurance on New Baby

lib-1When we think of life insurance most of us tend to focus on people nearing the end of their lives, and don’t think about babies and children who should have a long life ahead. However, horrible things do happen, which is why it’s important to consider taking out life insurance on your new baby.

Financial experts say such policies are useless because the only real purpose of life insurance is to replace the income of the breadwinner, but for most people policies also pay for funeral expenses, medical bills, and similar costs. The average family simply cannot absorb these costs without the help of life insurance.

On average, funerals for adults cost $6,000. Funerals for babies are cheaper since the cemetery plots are smaller and caskets are self-vaulting (saving you the cost of purchasing a vault), these funerals also tend to be more elaborate with parents paying extras. Most life insurance policies for children have low values because they are intended to cover the costs of these types of expenses.

However, whole life policies don’t stop providing coverage once a child turns 18. If you or a grandparent purchase a policy for a baby, by the time that baby reaches maturity, so will the policy in most cases. The policy will stay with them throughout their life. Get Peace of Mind by Protecting Your Family. Search Life Insurance Rates.

Since most young adults never think of purchasing life insurance, having this added protection during those years means if anything does happen some of the costs will be covered by this policy. That’s an important benefit for college students and twenty-somethings who are just trying to start a career and don’t have the funds available to purchase even an affordable term life policy.

Another consideration is that if your baby or child develops a medical condition that makes it impossible to purchase life insurance as an adult, their policy will already be in place to cover some of the expenses. Financial experts claim that planning for something that is unlikely doesn’t make sense but ask adults who can’t qualify for life insurance if they wish their families had purchased a policy when they were young and the answer is probably going to be a resounding yes.

When it comes to buying life insurance on a new baby you need to plan for things that usually don’t happen. None of us want to think about a baby dying young. If the child does, a policy can provide financial comfort during one of the most difficult experiences anyone can face.