Life Insurance for Children or Grandchildren
Many people secure small insurance policies on younger children. Sometimes this is simply to cover a potential death benefit for an unexpected funeral. Often these are cash value policies sold as a potential college savings plan with an added death benefit.
But what happens to the death benefit when the child cashes out the policy to buy a car or pay down some of their college loans, put a down payment on a house, travel, etc.? At this point, the coverage or death benefit usually disappears, and any new insurance purchased will be calculated at their current age, current health and current lifestyle.
But they might not buy a new insurance policy at that point, so when they decide they actually need it, will they be able to buy it? And if so, will their health enable them to afford it? Just like you, the health of your children is not guaranteed for any length of time.
> Buying Adequate Life Insurance
> Life Insurance for Children or Grandchildren
> Life Insurance for High School/College Students or Co-Signing Loans