Life insurance has several purposes:
- Pay off debt
- Pay for Children’s Education
- Replace Income
- Pay for Long Term Care
- Pay for Final Expenses
- Leave a legacy gift.
These are the purposes I talk through when writing life insurance on adults. Yet, when talking about life insurance for children, we shift gears dramatically. The primary reason to purchase life insurance on a child is insuring their insurability. Insuring your child’s insurability is the chief reason I encourage my clients to take out a life insurance policy on their child.
When we think about children, we think about them being full of energy, healthy, and bounding with life. As difficult as it is to consider, however, children develop illnesses which can disqualify them from getting life insurance for the rest of their lives, illnesses such as cancer or autoimmune deficiency disorders. When you purchase a life insurance policy on a child, State Farm offers you the option of purchasing a rider called a “Guaranteed Insurability Option.” (GIO) The GIO will allow your child, regardless of his/her health condition, to purchase more life insurance 5-7 times over their lifetime without proving their insurability. This is a tremendous gift, and the way to insure your child’s insurability! If you are interested in insuring your child’s insurability, please call me, and we can talk through your options today.
H. Darrell Watson
State Farm
770-910-3399 – Office
