How To Buy Term Life Insurance for a Child or Juvenile

Term life insurance is a common type of life insurance that is purchased for children or juveniles. It is a temporary coverage that only pays a benefit upon the death of the insured. The insurance has a specific start date and specific end date. The benefit will only be paid out for death that occurs during dates that the insurance covers.
 
Those who are financially responsible for a child and are considering purchasing term life insurance for him should do the following:
 

  1. Understand the types of term life insurance available. There are two main types of term life insurance--level and decreasing.

Level term life insurance has a death benefit that remains the same throughout the term of the insurance. The premiums also remain the same throughout the term.

Decreasing term life insurance has a death benefit that will decrease throughout the term of the insurance. The premiums remain the same throughout the term, but they are generally less expensive than the premiums on level term insurance.

  • Understand other options. Options that may be available with the term insurance are the option to renew or the option to convert to another type of insurance.

    Many children's or juveniles' term life insurance policies are renewable at the end of the term. Some automatically renew if you continue to pay the premiums (much like home or auto insurance), while others need to be formally renewed.

    Some policies have the option to convert them from a term insurance policy to permanent insurance policy during the term.

  • Decide upon the term you want to insure the child. Do you want to insure the child for ten, twenty or more years? At what point do you anticipate the child no longer being your financial responsibility? Once you know how long you want to purchase the term insurance for, you can choose a shorter term policy that is renewable or a longer term policy that will cover the anticipated duration of your financial obligation.
  • Know the advantages of insuring a child with term life insurance. Term life insurance will pay out a specified premium in the unfortunate event that a child should die. This premium will help pay for funeral expenses. It may also possibly help to cover any medical bills that occurred before the child's death.
  • Find an insurance provider. This can be done by going through an insurance agent or broker. These agents can be found by asking trusted friends if they have any recommendations or by finding one through the phone book.

    Another way to find an insurance provider is by comparing quotes online. Two online companies that provide this service for free are IntelliQuote and ReliaQuote. Both offer the ability to compare quotes at several reputable insurance companies.

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