Although the death benefit would certainly provide for funeral expenses and help to allow parents some time off from work, the living benefits of a child’s policy can provide a lifetime of value.
Premiums are affordable on a child and remain level for life. The premiums can never be increased.
Permanent coverage that can never be canceled, provided that premiums are paid when due.
Protects the child’s future insurability. The Policy Purchase Option rider guarantees the right to purchase another life insurance policy periodically, without providing evidence of insurability. This guarantee, which can be exercised on scheduled policy anniversaries, is available until the child reaches age 46—regardless of their health or occupation.
Tax-deferred cash value accumulation: The cash values that accumulate in the policy can be accessed via loans* during the child’s lifetime to help fund education expenses, a new home or supplement retirement income.
Whole Life can provide a foundation upon which the child can build their financial future and help remove some of the burden of providing life insurance protection to a young family as they are getting started. Often when insurance protection is needed the most is when a family’s funds are already stretched, such as at the birth of a child or the purchase of a new home.
* Loans against the policy's cash value reduce the death benefit and the cash value by the loan plus the interest.