Paying for an Education is Easy with Whole Life Insurance for Children

When your children are born, generally life insurance is not the first thing that you think about. The joy of watching your child learn and grow takes precedence, and thinking positively about the future is usually the only way to go. However, life insurance for children is incredibly important, and so taking out whole life insurance for children when they are young should be a significant consideration for planning for the future.  

Although most people think about life insurance as a way to pay for the costs associated with the death of a loved one – it is not the only reason to acknowledge the benefits of a life insurance policy, especially for children. If a parent has to suffer the tragedy of losing a child, the benefits of a policy that can relieve some of the financial stressors are essential. That being said, purchasing life insurance for children does not necessarily have to be so negative.

Firstly, what is whole life insurance for children? Whole life insurance for children is just like whole life insurance for adults; it is a policy that protects you, holds a cash value that can be borrowed against, and generally is garnered by paying fixed monthly payments set at the beginning of the policy that will not change over time.

Whole life insurance for children is an essential savings tool – especially when planning for future education costs. Every parent wants their child to have access to the best education, and therefore the best jobs that help ensure their future. But this education is costly, and so education planning is critical. Knowing that the average cost of one year of post-secondary education is currently around $12 000, thinking about where that money is going to come from is key.

As a savings account, whole life insurance for children provides you with the ability to continually add to these accounts and watch the balance grow. Then, when the child is old enough, planning to go off to college or university, they can access those savings that you have worked so hard to amass for them.  This saves them from having to take out extensive student loans or O.S.A.P loans to pay for their education. By taking out a policy that provides life insurance for children, you are giving them a chance start their future without a heavy debt load.

These life insurance policies also make great gifts. If you are a grandparent and want to give a gift to a child that will actually benefit them, life insurance for children as a vehicle for saving is a great way to do that. Take away those negative connotations attached to life insurance, and giving a life insurance policy that a child can watch grow over time and eventually use to pay for their education, or for any number of other big purchases, will mean a great deal.

To find out more about life insurance for children and how it can help secure your child’s or grandchild’s future, please contact Gary Mandel at Independent Financial Concepts Group at 416-849-1653 or visit www.wecoveryou.ca.