One of the many questions that come up a number of times is that should children have an life insurance policy? Usually life insurance is necessary for a person with members who are dependent on him or her and hence it is generally considered as a salary replacement. So how useful is it to have life insurance for children? This kind of policy for children is mostly one that insures a minor's life and is a form of a permanent life insurance. The cash value grows and as it matures, some companies allow withdrawal of the entire amount by collapsing the policy. Before choosing a plan it is wise to consider the advantages and disadvantages of the policy. Life insurance policy for a child is generally to meet the burial expenses or other medical expenses in the event of the child's death. Another reason you could go for this kind of policy for a child is by considering the fact that there may be chances of a child developing illnesses in late childhood or adulthood. At that stage it may be difficult to go for a life insurance policy. If you go for a small policy as a child then these expenses can be met. Child insurance plans have a very affordable premium and companies offer continued coverage right up to adulthood. At the age of 21, the policy could be converted to an adult policy. If you have a strong financial income and can afford to go for insurance for children then you must go for it. Before coming to a conclusion on which policy to choose for your child, you should first shop around and take your time before coming to a conclusion. There are huge differences in plans available with different insurance companies and also big differences in the coverage as well. A policy that covers the potential illnesses would be a good choice. Child life insurance policies are typically issued with face values between five thousand dollars and fifty thousand dollars. They should not be confused with policies with higher face values which are generally purchased for college savings or lifetime savings. Child plans are usually purchased so that a family is not faced with sudden or unexpected costs of a child's funeral or even medical illness. On collapsing the policy, the child can benefit from the guaranteed growth in the cash value which can be used when the child is in his early twenties.
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