Family LIFE
Life Insurance for Children:
A
Is It Worth It?
s a parent, you want the best for your child and their
future. Imagine having the ability to say YES to your
child pursuing higher education, starting their own
business, or purchasing their own home because you have set
their financial plans in motion today. By purchasing whole
life insurance for your child, you will give them the opportu-
nity to turn your dreams into their reality.
At Freisenbruch-Meyer, our whole life plans combine the
benefits of life insurance and investment. The death benefit
is the insurance payment beneficiaries will receive only after
the insured passes away. Over the duration of a policy, owners
can receive dividends which help to grow cash value within
the policy. The policy owner can then loan or withdraw these
funds at any point throughout their lifetime.
Most people procrastinate when it comes to buying life
insurance. We’re usually too focused on managing our affairs
today to consider the fact that we should also be putting
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things in place to prepare for tomorrow. Two of the biggest
impacts of delaying the purchase of life insurance are:
1. The annual cost: With each year that passes, age
and health have a more significant impact on
your policy premium.
2. The timeline to achieve your goals: The longer it
takes you to sign up for whole life insurance, the
longer it will take you to generate the cash value
needed to fulfill your dreams.
The best time to purchase life insurance for your child
is while they are young and healthy. Medical exams are not
required for children under the age of 18 because their health
should be optimal at this stage of life. The healthier a person
is, the lower their life insurance premium will be. Lower pre-
miums mean you can afford more coverage for your child and
have them leave a larger legacy behind for their loved ones.
People often put off buying life insurance because they
believe it is a luxury they cannot afford; but our coverage is
more affordable than you think. If you can afford to buy a cup
of coffee every day, you can afford to purchase the quality life
insurance protection you and your family need – AND, signing
up early can save you more money in the long run!
As your child matures, their life insurance needs may
change; and there’s a risk that premiums for their future cover-
age could be affected by changes in their health, hobbies or
even their career. Adding a Guaranteed Insurability Rider to
your child’s policy, can protect them against these risks. The
‘guarantee’ is that once your child’s initial policy is issued, they
will have several opportunities to purchase additional coverage
in the future without having to undergo a medical.
When considering the coverage that best suits your vision
for your child’s future, there are two main questions you need
to ask yourself:
1. How do I want to pay for the coverage?
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Pay to 100: With this option, you will pay flat monthly
premiums every year, from policy inception until your
100th birthday.
Guaranteed 20-Pay: With this option, your monthly pre-
miums will be a bit more expensive, but the policy will be
completely paid for in 20 years.
2. How do I want the cash value to grow?
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Wealth Generator: This plan provides the highest rate of
growth for your cash value within the first 20 years of cov-
erage – which would be ideal if you intend to offset your
child’s college expenses.