It’s Debatable: Should You Insure Your Children?

insurance for children saskatchewaninsurance for children saskatchewan

How do you feel about life or critical illness insurance for your child?  No one wants to think about their child becoming seriously ill, or even worse… dying.

 

Many financial advisors believe that insurance is only needed for individuals earning an income but I would whole-heartedly disagree.  In the past many advisors felt that insuring a child was not necessary because they provide no financial benefit to the family.  Some advisors today still feel the same.  However, there are many reasons to consider insurance for children and it is probably one of the most significant decisions a parent can make.

 

Life Insurance for Children

 

Many years ago when I first started in the financial services industry I was told a story about a local school principal whose teen son had passed away from cancer.  He had told his advisor to pass on this story and encourage parents to insure their children.  His son had been diagnosed with cancer and as any parent would do, the principal tried everything within his means to find a cure for his son.  This involved extensive travel within Canada for treatments and therapies.  The costs were expensive but as a parent the cost was irrelevant.  The principal and his wife withdrew all savings, including RRSP’s, to pay the medical bills.  Unfortunately the son passed away.  The principal had the heartbreak of dealing with his son’s death but also the financial stress of no longer having any funds for his retirement.  He believed that if there had been life insurance on his son it could have replaced the spent retirement savings.

 

This story is only one example of why children should have insurance and the thought of financial gain can make some people feel very uncomfortable.  However, the reason to have life insurance for a child may be even more important.

 

Children do become ill and are diagnosed regularly with lifelong illnesses that can affect their future insurability.  If this should happen it may become difficult or impossible for them to qualify for insurance later on in life when they are adults and need insurance to protect a mortgage or financially protect a spouse and dependents.  A child’s policy, purchased while they are young and healthy, is inexpensive and has the ability of adding a GIO (guaranteed insurability option).  This allows the child to purchase additional insurance up to seven times in his/her adult lifetime with no medical questions asked.  For a child or young adult who becomes uninsurable, there is no greater gift.

 

Critical Illness Insurance for Children

 

critical illness insurance for children saskatchewan

 

Another insurance coverage for children is critical illness insurance.  For children faced with life threatening illnesses, treatment or therapy can have additional costs not covered by our provincial health plan, including travel to another city, province or even country.  A family dealing with a health crisis does not need the added stress of not knowing how they will pay theses extra costs.  A critical illness policy for the child can provide these funds.

 

More important, it is the ability of a critical illness policy to provide income replacement for the child’s parent.  When a child is ill the only place a parent wants to be is at the child’s side.  A lengthy illness may mean a leave of absence from work is necessary for the parent, a leave of absence with no pay.  The benefits from a critical illness policy can provide the funds necessary to continue paying household bills, additional childcare costs for other children, possible travel expenses, and more.  It can help ensure that you are able to be with your child when they need you most.

 

insurance for children saskatchewanFinancial planning to protect your family is extremely important.  Don’t forget to include insurance for your children in the plan.

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