Being a parent, you make sure that your family gets everything in their life. And to fulfill their dream, you do financial plannings from the starting.
But after all these efforts, you may wonder, is there anything else you could be doing to make your children’s future more comfortable?
Well, we are talking about the juvenile life insurance.
Sadly, most of us don’t think of getting a juvenile life insurance and it is preferred (majorly) that a life insurance should be bought only after the kids become an adult.
And the major reason, most of us give to avoid juvenile life insurance is, “my child is perfectly healthy and I don’t need it now. Maybe I consider taking one in future”.
Well, to explain its advantages and its types, we are here.
So, without wasting any second, let’s get started.
Like a normal life insurance, Juvenile Life Insurance also comes in three types.
Juvenile Permanent/Whole Life Insurance:
As we know about the Whole Life Insurance, this type of policy cover whole life and its premium rates are comparatively higher.
Similarly, the Juvenile Whole Life Insurance comes with whole life coverage and also with some additional benefits.
#1 Low Premium Amount
As we all know that premiums are very high in whole life insurance plans, but if you take this plan for a juvenile, the premiums are comparatively lesser than normal.
#2 Cash Value
The policy’s cash value increases with time and hence making it a reliable savings vehicle.
It also provides a low-interest loan facility without any hassle.
Suppose, you have taken a life insurance for your juvenile kid and after few years, you need a loan.
Well, using the policy’s document (also depends on how much premiums you have deposited in policy), you can easily take a low-interest loan from the insurance company.
Juvenile Term Life Insurance:
Like the normal Term Life Insurance, Juvenile Term Life Insurance doesn’t come with any cash value and also its premium amounts are very low.
Secondly, this type of policy provides a cover for some specific time period, like 10, 20 or 30 years.
In some Term Life Insurance, Juvenile Term Coverage comes as a rider (a coverage option), so you need not buy an extra term coverage for your juveniles.
However, these riders are valid till your children reach adulthood.
And once your children get into adulthood, you have options either to buy insurance at the same price using a rider or buy an another life insurance.
Juvenile Group Life Insurance:
Some employers do provide juvenile life insurance option through their group life insurance coverage for the employees and their children.
Here are some advantages and disadvantages of having Juvenile Group Life Insurance:
- Sometimes premiums are waived off by the employer, so you need not worry about paying any amount.
- Even if the employer doesn’t waive off your premiums, you get a subsidized amount to pay, which remains very less.
- Less documentation required as your employer is your guarantor.
- There is a chance that you and your children wouldn’t require a health checkup for this insurance.
- The policy can be changed or discontinued without your consent if the employer wants.
- Policy lasts till you work in the organization. Once you resigned, the policy would either discontinue or changed by the employer.
- You don’t get many options to choose from. The employer has all right what policy it want you to give.
- You don’t get desired coverage as it is depended on the employer.
At the End:
So, these were the three kinds of Juvenile Life Insurance. All the three have their own advantages and disadvantages.
But before getting into it, remember that a right Juvenile Life Insurance would help to build your children’s financial future.
So, always understand the requirement and then decide.
Here are the few things which you require to keep in mind before selecting a life insurance for your children:
#1 Coverage Required
After understanding the need of your family and kids, you should plan for coverage. So never buy any insurance in hurry.
This insurance would help to build your kid’s future, so take time but choose the perfect one.
#2 Do You Need Cash Value
If you are taking the life insurance only for health purpose, then you can go with Juvenile Term Life Insurance.
But if you are looking for a cash value, you should try Juvenile Whole Life.
#3 You Financial Condition
Before buying any policy, you should keep in mind what’s your current financial condition.
Well, it generally affects the policy.
Suppose, you have bought a policy and later you find that you are unable to pay the premiums.
In this case, your policy gets nullify.
#4 Get Clear About Terms and Condition
Never ignore asking the terms and condition for the policy to avoid any future problems.
You may ask:
- Is there any age cap?
- In what cases, the policy coverage couldn’t be claimed?
- Is there any chance of changing the policy in future?
- Is policy considered valid, if death occurs outside country?
- What’s the procedure of policy claim?
You can ask several other questions, which you feel is required to be known before buying the policy.