Winter is just around the corner. The days are short and the nights are cool. Kids are in school, there are lunches, homework, sports and school gatherings.
When my boys were young, I was concerned about their safety: riding buses, sports activities and playground mishaps. I remember all the paperwork I had to fill out as a young parent. Who to call in case of an accident or illness, making sure they had all their immunizations. Did we have enough insurance coverage for any major accident or injury that could happen? We even made sure to have life insurance coverage.
The life insurance we purchased when they were infants gave us a little extra peace of mind. I knew they should have some type of coverage in case something were to happen to them, whether it be an accident or a health diagnosis down the road, that might prevent them from getting coverage at all. I thought of it more as a way to help them protect their future, not something for me. Plus buying it at their young age was very inexpensive, making it very affordable for them later in life.
It turns out, one of my boys was diagnosed with asthma. If I had waited, he may have paid more for the same coverage or may not have been able to get coverage at all. I’m glad I included additional insurance options for each of them. With those options they can purchase additional coverage at specific time periods in their lives and they can’t be refused because of any future medical issues that may develop when they do exercise those options.
When I became aware of life insurance with living benefits, I also made sure the accelerated benefit riders¹ were added to both policies. These no additional cost riders are an added benefit to their insurance policies. If either of the boys had a qualifying medical event later in life, they could accelerate the death benefit to help pay for unexpected costs. With options to purchase additional insurance and the living benefit riders, I felt their future insurance needs were met.
I also kept telling myself that if they needed to use some of the cash value built up over the years they could. If they paid in enough premium, they could access the cash value in the policy through policy loans and withdrawals² for schooling, a down payment on a home or for any other large purchase. As it turned out, they didn’t need to access their policy, but it was good to know that it was there if they needed it. They have since been able to exercise a couple of options to purchase additional insurance to make sure their insurance coverage keeps pace with their lives.
Have you considered purchasing policies for your children? Do you have enough insurance on yourself? Now may be the right time to take care of it and have the comfort of knowing you are all protected if something should happen in the future.
We all know how fast time flies. Don’t put it off. Do it now.
1 Payment of Accelerated Benefits will reduce the Cash Value and Death Benefit otherwise payable under the policy. Receipt of Accelerated Benefits may be a taxable event, may affect your eligibility for public assistance programs, and may reduce or eliminate other policy and rider benefits. Please consult your personal tax advisor to determine the tax status of any benefits paid under this rider and with social service agencies concerning how receipt of such a payment will affect you.
Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless you also have a need for life insurance. Riders are optional, may require additional premium and may not be available in all states or on all products. This is not a solicitation of any specific insurance policy.
2 The ability of a life insurance contract to accumulate sufficient cash value to help meet accumulation goals will be dependent upon the amount of extra premium paid into the policy, and the performance of the policy, and is not guaranteed. Policy loans and withdrawals reduce the policy’s cash value and death benefit and may result in a taxable event. Surrender charges may reduce the policy’s cash value in early years.