Protecting your family means covering all of your bases.
The value of life insurance for parents is obvious, but many families don’t consider the importance of getting life insurance for children. In addition to covering yourself, life insurance coverage for your boys and girls stays with them through adulthood.
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For a very low cost, you can take out additional life insurance coverage for your kids. Should one of your children pass, you can then collect the life insurance payout in order to cover funeral plans, time spent away from work, medical bills, and other costs that inevitably arise from the death of a loved one.
The cost of life insurance varies by provider and depends on whether you are purchasing an entirely separate plan for your children or purchasing an add-on to your own existing plan. However, child life insurance payments can be as low as £5 per month.
The amount of coverage included in your child life insurance policy is up to you. However, most providers do not offer the option for unlimited maximum coverage as they do for adult life insurance. Instead, the maximum child cover is usually capped at £25,000-£50,000, with a few providers offering a slightly higher maximum coverage.
Unlike adult life insurance, which offers the option of lifetime coverage, life insurance for children only stays with kids until they reach a certain age, after which they are considered to be adults and must purchase their own life insurance policy. Some providers do offer the option to renew their child life insurance as an adult life insurance policy at a lower cost. Additionally, policies do not offer as much coverage as adult life insurance policies, because the passing of a child does not present the same kind of financial burden as the passing of an adult. Because of that, life insurance for children is cheaper than adults.
Family life insurance covers the adults in your immediate family all under one policy. It does not automatically cover the kids, however. In order to make sure your boys and girls are covered, you would need to add a rider or additional child life insurance policy to your family life insurance.
This will vary depending on the provider, but it can be anywhere from 18 years old to 23 years old.
When purchasing life insurance for your children, it’s important to make sure that the policy you’re purchasing is renewable. That way, once your kids are of age, they can renew the policy at a much lower cost than purchasing a new one. It’s also important to purchase a policy that is convertible into whole life insurance if you want your policy to be an investment for your kids.
If you children develop an illness or disease, such as diabetes or heart attack, they can remain covered under the same child term life insurance policy.
As with all life insurance, the higher your monthly premium, the higher your payout. However, there are limits on the payouts. They tend to be around £25,000-50,000.
Yes, your child life insurance payout is not taxable.
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