For most people, the idea of living longer than their children seems outrageous. However, life is full of unexpected twists and turns that can make even the most outrageous of ideas an unfortunate reality. Protecting yourself and the rest of your family in these critical moments is important. Should you be faced with this tragedy, a life insurance policy for your child can serve as the added layer of protection you need.
The national median for the cost of a funeral is more than $7,000. For a burial by vault, this cost increases to more than $8,000. For the average family, these figures are enough to cause a significant amount of strain.
During a time of such extreme tragedy, the last thing you want to have to focus on is money. A life insurance policy for your child can help cover these costs. Having the confidence that you don't have to worry about money will allow you and your family time to properly celebrate your loved one's life and grieve appropriately.
When most people think about life insurance policies they think about how they can benefit with covering funeral costs. However, a child life insurance policy can also assist with the payment of medical bills. For a patient between the ages of 1 and 17, the average hospital stay cost can be as much $8,400.
In more serious cases of illness, this cost could easily skyrocket. In some instances, the healthcare provider has the legal right to pursue any unpaid balances from the deceased parents. Even if your child is covered by private health insurance, the life insurance policy can help bridge the gap between any costs not paid, protecting you financially.
It's also important to note that many child life insurance policies come with a continuation clause. Many insurance companies will guarantee to continue coverage for your child once they reach the age of 18 or 21, depending on the specific terms of the policy.
Once your child has reached adulthood, they can either keep their policy the same, increase its value to adult coverage or cash out. Depending on the cash value of your child's policy, the cash out feature can go toward the cost of their education. However your family chooses to convert the policy, your child can continue to be covered.
Purchasing a life insurance policy for your child in no way means you're expecting the worse. This policy only aim to stand in as a layer of protection in case of the unexpected. Contact an insurance agency, such as Combined Business Group, to get started on your policy.