The many whole life and term life policies that are available to Westerly, RI residents have lots of different options that can be used to customize a policy. Policies can provide different amounts of coverage and coverage for different amounts of time, and whole life policies often also include an investment feature within the policy. Despite all of these options, the main function of all life insurance policies is the same. They provide beneficiaries with financial payments when a policyholder passes away. Many parents realize that they need this protection, but they don’t always realize that their children might also need the protection that a policy provides.
Parents in Westerly, Rhode Island: Should Your Child Have a Life Insurance Policy?
Policies Can Replace Lost Income
Many people use life insurance policies to ensure that their loved ones would be taken care of if they passed away. This is a particularly important consideration for parents who provide for their children.
As a parent, you’re responsible for caring for your kids. An insurance policy won’t replace you -- nothing and no one could. It will help to make sure they’re able to live the life you want for them, though, by providing them with financial resources. These resources can be used to either make up for the lost of your income, if you work outside the home, or hire someone to care for your children, if you’re a stay-at-home parent.
For most families in Westerly, it doesn’t make sense to purchase enough coverage to replace a child’s income if they pass away. Unlike your or your spouse’s income, the family probably doesn’t rely on money from a paper route or babysitting to pay the bills. The money that most kids earn through these activities is theirs (although parents may dictate how they spend and save it), and it doesn’t necessarily need to be replaced if the worst happens and they pass away.
Policies Can Cover Burial Expenses
Even if you don’t need an insurance policy to replace your child’s income, however, you may still want to get them a small insurance policy for a completely different reason. If your child passed away, you’d be faced with burial expenses. Funeral costs can total thousands of dollars, even more than $10,000, which would be a significant financial burden for many families. An insurance policy could help you defray these expenses.
If your family has enough savings to absorb the expenses associated with a funeral, you may not need to purchase an insurance policy to cover these costs. If the expenses would be a difficult burden, though, you might want to get a small policy for each of your children. The policy doesn’t need to be for hundreds of thousands of dollars. Just $10,000 or $20,000 worth of coverage would likely suffice. Such a policy likely won’t cost much, since the limits of the policy are low, and children generally are healthy.
Ask A Westerly, RI Agent About Life Insurance Policies for Children
For help finding small insurance policies for your children, contact an independent insurance agent in Westerly who offers life insurance and they can help guide you on your way.
This material is for informational purposes only. All statements herein are subject to the provision, exclusions and conditions of the applicable policy. For an actual description of all coverages, terms and conditions, refer to the insurance policy.
