Financial protection in the event of a tragedy: although it is a rare and difficult scenario, the death of a child can cause not only emotional but also financial hardship for a family. Life insurance helps cover funeral expenses and other related costs.
Ensuring future coverage: life insurance policies purchased as children can ensure that the child will have coverage in the future, no matter how their health changes. This is especially useful if the child may have trouble obtaining insurance in adulthood due to medical conditions.
Investments and savings: some types of life insurance, such as policies with a savings element, can be used as a savings or investment instrument. Policies can accumulate cash value over time, and these funds can be used for a variety of needs, such as college.
Low cost of premiums: child life insurance is often significantly less expensive than one for adults. Parents can lock in low premiums for a long period.
Thus, many parents in the United States consider child life insurance not so much as a means of protection in the event of a tragedy but as a way of long-term financial investment and ensuring the child's future stability.
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