"There is a rare need for an insurance policy for a child," - says Eddie Jurgielewicz, a certified financial planner with Facet. - Term life insurance is primarily intended to provide financial security to those who are financially dependent on the policy owner.”
Life insurance for children has some benefits, including low premiums fixed for the future.
There are two main ways to purchase life insurance for children: as a stand-alone policy—usually a risk life insurance policy—or as an add-on (rider) to parent’s policy. Riders usually cover a child up to a certain age.
However, life insurance for children also has the following drawbacks:
Fixed costs: to keep the policy in force, the family must pay monthly premiums to the insurer.
Limited policy: many life insurance policies for children are small with coverage of less than $100,000. Children will likely need more coverage as they get older.
Source: https://www.cnbc.com/select/life-insurance-for-children-is-it-worth-it/
Photos are from open sources.
