Child Life Insurance – A Valuable Head Start

What every parent wants most for their children aside from good health is to be able to provide well for their future. That's why millions of American households today are turning to juvenile or child life insurance as one component of their financial planning strategy.

Children under the age of 16 are eligible for child life insurance. The policy, which can be purchased as whole life, universal life, term, or convertible term, is owned by the purchasing adult until the child reaches the age of majority as defined by individual state law. When the child is grown, he or she will then own the policy.

As a head start to financial security for your child, juvenile or child life insurance provides several important benefits. It establishes your child's future eligibility for insurance regardless of his or her future changes in health. So, if your son or daughter develops a health problem, they will still be able to get life insurance as an adult. And, if your child grows up healthy, their child life insurance policy, if you purchased whole life, can be tapped into for its cash value. This makes it an effective nest egg for their college education or first home.

No one likes to think about life insurance, especially child life insurance, because it forces us to think about the unthinkable. But with benefits so tangible, it pays to set aside any negative feelings in order to gain this valuable edge in life.