Acquiring life insurance for children is not for everyone but can be a good investment in your child’s future, depending on your circumstances. The discussion below reviews the primary pros and cons, though having a conversation with your insurance agent is best before deciding. If you are considering life insurance for yourself or family members, the Cross Creek Insurance team in Hope Mills, NC, can guide you through the process.

Benefits of Life Insurance for Children

Buying life insurance for children has benefits that vary by family and child. Among the reasons it may be wise to acquire life insurance for your children are:

Low Cost

Children’s life insurance is relatively inexpensive. You can lock in low rates when they are young.

Insurability

Children or families with certain medical histories benefit from buying life insurance that may not be available based on their future medical status.

Cash Value

Children’s life insurance comes as whole-life policies, allowing them to build cash value.

Final Expenses

In the unlikely event of a child’s death, the policy can pay for money for the funeral arrangements.

Drawbacks of Life Insurance for Children

Long-Term Commitment

Life insurance is a long-term financial commitment, so you need confidence that your budget will handle the payments.

Low Rate of Return

Life insurance is a low-return investment. Ensuring that you and other breadwinners and caregivers have adequate life insurance is more important for most families.

Coverage Limits

Most life insurance policies for children are limited to $100,000 in value.

Working with Cross Creek Insurance

If you live in the Hope Mills, NC, area, the Cross Creek Insurance team will design an insurance plan that meets your needs. Call (910) 423-2900 or stop in today to ensure your family has the insurance protection it needs.