When my daughter Kim told me I’d be a new grandparent, I wanted to promise my soon-to-be grandchild a lifetime of stability and success. At the same time, I began accepting that I wouldn’t always be there to care for her needs. I’d heard about life insurance as a solution to this scenario, but I’d always hesitated to explore it since thinking about death overwhelms me.
With a grandchild on the way, I knew I should put that anxiety aside, so I learned about why I might want life insurance for Kim’s baby. And by the time my granddaughter Rasheeda arrived, I had indeed secured a whole life insurance plan for the newest (and cutest) member of the family. Since I’d been nervous to investigate life insurance before actually doing so, I’ve shared my reasons for getting life insurance for a baby in hopes it helps others make similar choices.
1. It secures coverage for life, no matter what happens
It may seem strange to purchase life insurance for such a young child, but there’s an important reason to do so. Buying a whole life policy covers Rasheeda no matter what life throws at her, whether that’s an unexpected illness that could prevent her from obtaining coverage or financial hardship that could prevent her from purchasing new coverage. With whole life insurance purchased so early on, Rasheeda would not have to worry about being denied coverage due to her occupation or a preexisting health condition.
2. The right policy grows with your child
Before obtaining whole life insurance for Rasheeda, the primary thing I knew about life insurance is that it pays your family when you die. As I learned more about life insurance, I found out that the cash value of select policies would increase every time I pay my premium. My plan’s total cash value would double when Rasheeda turned 18 without my premiums increasing. Since I ushered Rasheeda into guaranteed lifetime coverage, I knew she would have the policy’s cash value if she ever needed it.
3. It provides financial security for pennies a day
Peace of mind came at a reasonable price: Premiums for whole life insurance can be as affordable as a few cents a day, a cost I could afford and was well worth spending if it meant Rasheeda would reap the benefits. With whole life insurance, I could affordably build Rasheeda a firm financial future.
4. It’s a great gift that keeps on giving
Since whole life insurance lasts a lifetime, it’s truly a gift that keeps on giving, certainly longer lasting than any toy or outfit I could buy her. My policy will stay with Rasheeda long after I’m gone, she will never outgrow it, and when she eventually turns 21, she becomes the policyholder. Then, she can choose whether to keep the policy, which doubles in cash value when she turns 18, or cash it out.
5. Select plans allow you to add more coverage
Additionally, with the right plan, Rasheeda can buy additional whole life insurance when she becomes an adult, no matter whether she’s healthy, employed, or neither. That’s important: life insurance providers can decline new applicants for health or occupation reasons. With a plan in hand that guarantees increases in coverage, Rasheeda could one day provide peace of mind for her own family.
Giving baby Rasheeda a whole life of coverage eased so many of my worries. I’m hopeful that what I’ve written here explains how life insurance actually works and why you might want to buy it for your children or grandchildren. If you want to explore life insurance plan options, click here to get started.
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