As a Houston Farmers insurance agent I sometimes get questions about juvenile life insurance. Juvenile life policies are purchased by a parent or guardian with a child as the insured.
In the event of the minors death the policy amount is paid to the beneficiary that is often the parent at the policy start. Over time the beneficiary may change to a spouse or the children of the insured.
In my opinion the life benefit coverage is not the primary reason to begin a policy for a child. Many juvenile policies will offer the option to get a larger amount of life insurance later. Some children become unable to get life insurance because of a health issue or a dangerous occupation. So starting a life policy early will make sure they are able to get coverage later in life.
A good policy can also be of benefit for the whole life of the insured. For example the policy could build cash value that could be borrowed against for the person’s first car or home down payment. It may be protection for the insured’s spouse of children. It could build cash value for use later in life. It could finally be to leave something for loved ones when the person dies.
There are a lot of good policies on the market. One to consider would be a flexible universal life policy. These policy’s typically have options to increase or decrease the term amount and monthly payment amount. A $50,000 policy for a young child could be funded for around $25 per month or less. If you are interested check with an agent at a reputable company and have all the details explained. Texas residents are welcome to call my Houston life insurance office at 281-537-2700.
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