Life insurance plans provide facilities by which a family can obtain a big financial help in the event of the insured's death. One can also think of purchasing a child life insurance policy to protect his/her children from any potential losses. Before considering this option, one should also make a systematic investigation about that particular child life insurance policy.
For the reason that life insurance is a beneficial option for compensating lost income of the insured in the event of his/her death, the necessity for child life insurance is subject to disagreement and debate. The truth is that children do not earn money. On the contrary, some argue that a family needs to obtain coverage to compensate related post-death expenses like medical cost, burial costs etc in the event of child's death.
Major Child Life Insurance Plans
A good number of child life insurance plans are available in the market. Some of the major child life insurance plans include Gerber's Globe Young American Plan and Grow-Up Plan. Both of these plans are popular for children. Some of the major features of these plans are described below:
Young American Plan
- Life insurance policy covers the entire life of the child
- The cost of premium is set based on the age of the child and it remains fixed throughout the child's life
- One needs to pay only $1 as premium for the first three months. It is applicable for $10,000, $15,000, $5,000, $20,000 or $25,000 of coverage
- To get the policy, one doesn't need to sit for any exam but only to fill up an online application form
- One doesn't need to wait for a long time for getting the policy
- Very low premiums
- Premiums are fixed throughout the life of the policy
- Coverage available include $15,000, $5,000, $20,000, $25,000, $30,000 and $10,000
- When the child reaches the age 21, the coverage amount will be doubled
- When the child reaches the age 21, he/she will be liable to purchase additional coverage
Child Life Insurance Policy Options
In addition to obtaining a policy for his/her child, one can also opt for “child death benefit”. This can be a beneficial option as it costs only $5 (per month) more. It also provides coverage of $10,000 against each of the child. This implies the fact that once the child (or children) becomes an adult, this coverage amount can be converted as their own policy.