The pros and cons of child life insurance:

The pros and cons of child life insurance:

We all want our kids to live long, healthy lives, which is why child life insurance may not feel like a top priority. It’s worth considering, though, as it can lock in low rates and act as an investment vehicle for your children. When deciding if child life insurance is right for you, consider these popular features.

1. Acts as an investment vehicle for your child. You can withdraw money from the cash value account or borrow against it. When the child reaches adulthood, he or she can surrender the policy and receive the funds in full.

Pros: The money can cover costs like school fees or a down payment on your child’s first home. It also grows tax-deferred, meaning you don’t pay taxes on the gains until you withdraw the cash.

Cons: Cash value accounts rely on you paying premiums, and can take time to grow.

2. Covers costs if the worst were to happen.

Losing a child can be extremely painful, and you may incur unexpected costs. Child life insurance policies pay out a lump sum in the event of a death, as long as the premiums are paid.

Pros: The payout can be used for expenses like burial costs or grief counseling. It can also help cover the costs of running a business if you’re the owner and need to take time off,

Cons: It’s relatively uncommon for a child to die in the U.S. In 2018, the country’s infant mortality rate dropped to a historic low, according to the Centers for Disease Control and Prevention. Therefore, the risk of going without coverage may not outweigh the cost of the policy.

Before you buy:

I represent my clients to wide variety of Financial products to meet their specific need. I will do the same for you. I believe putting my clients first, and helping families in need to make sure they are financially secured.

Charles Butler

[email protected]

(949) 510-5068