![]() ![]() ![]() These accounts have much better interest rates than the cash value accounts that go along with child life insurance policies and can help families save significantly more money.įamilies can still get life insurance coverage for their children by adding child riders to either or both parents' term life insurance policy. Instead of a child life insurance policy, families can choose to open a college savings account or other high-interest savings account. ![]() For many families, a child life insurance policy simply isn't the best use of money. However, there are also disadvantages to child life insurance policies. Some parents and grandparents consider this a valuable gift. They'll also be able to borrow against the cash value of the account and make any changes to the policy that they need to. At that point, the child will take over premium payments. This makes a child life insurance plan both a life insurance plan and savings account all in one policy.Īll child life insurance plans will transfer to the child once that child is either 18 or 21 the exact transfer age depends on company policy. You can borrow against the value of the cash value account component of a whole life insurance policy at any time. Over the years, the cash value will collect interest and build up. The other advantage of child life policies is that they build cash value. Buying a policy for a child allows a parent or grandparent to lock in a very low rate that a child will be able to keep for the rest of their lives. One of the primary advantages of any child life policy is that is you're purchasing it for someone who is very young and, hopefully, very healthy. Other life insurance products available from each company are listed below.Īdditional Gerber Life Insurance products:Īdditional Globe Life Insurance Products:Īre their child life insurance plans a good option?Ĭhild life insurance plans can be a good option for some families, but they're not right for every family and every situation. Globe life is one of the only companies that write children's life insurance policies for this age group. Since their plan extends up to age 25, Globe Life is an appealing option for parents or grandparents looking to secure plans for older teenagers or college students. Globe Life has been in business since 1900 and offers the Globe Life Young American Plan for youth under the age of 25. The Grow Up Plan offers several popular benefits including an automatic doubling of coverage to $100,000 when a child turns 18 if a policy was originally purchased at $50,000. They offer the Gerber Life Grow-up policy for children under 14 and the Gerber Life Young Adult Policy for teenagers between 15 and 17. Geber has been selling insurance policies for children since 1967. Two of the biggest names in children's life insurance are Gerber Life and Globe Life. ![]()
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