For some, the thought of buying life insurance for their children is ridiculous. They believe it’s something exclusively for adults who decide 
it’s time to become fiscally responsible, and often not thought of for themselves until they face marriage or the birth of their first child. I want to share with you 3 reasons why it’s a great idea to buy life insurance for your children.
1. Low Cost. It’s likely the cheapest life insurance you will purchase because it’s based on age and health risk factors, and provided your child is healthy, it should be relatively inexpensive.
2. The ‘What If’ Factor. The sad reality is that children die and many of them die uninsured. Having even a small life insurance policy in place for your children can insure that their loss does not become a financial burden due to the funeral expenses. Additionally, you may not want to go back to work the next day, week, or month, so having a financial cushion can give you that freedom to take the time to grieve.
3. To Help Them Build Their Retirement from a Young Age. This was one of the biggest revelations I had into the power of a properly structured life insurance policy combined with the “magic” of compound interest. Please listen closely. Did you know that if you took out a small life insurance policy (say $2,000 per year in premium) and paid it until your children were 20 years old that by the time they retired (assuming it grows until they are 65 years old) they could potentially have an income stream of over $40,000 per year until they die – even if they lived to 100! That’s some powerful math! Of course, it makes some assumptions, but that’s what you have to do with any retirement strategy.
If you have children, I highly recommend that you start them out right by having a life insurance policy on them. Not because you fear they will die early, but because you want to establish a family tradition of creating legacy wealth. Imagine if all of your successive generations planned this well; what would that look like financially? Imagine if you put in more money or had your kids add the $2,000 per year for the next 20-40 years of their working life? The numbers are astonishing, but they are real.
Here is a link to a life insurance value calculator that you can use to run some numbers for yourself.
If you need a referral to a trusted advisor who can help you understand how these types of life insurance policies can benefit your kids or you, please contact me and I will refer you to a trusted advisor.