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Insurance is one of the most important purchases you make. An adult's need for life insurance may be very different from a child's need.
You must first decide whether life insurance for your child or grandchild is appropriate. To make this determination, you should decide which life insurance benefits you believe are needed for your child or grandchild. For example, are you looking to plan for the child's survivors' long term life insurance needs, to just cover short term burial costs or do you want to buy a life insurance policy for the child at a young age to avoid higher annual premiums if the child purchases insurance at an older age.
If you decide you need life insurance for your child or grandchild, you then have to decide what type of policy is best and how much coverage to purchase. Purchasing the right life insurance for your child or grandchild that meets the child's and your needs can be challenging. Since your child's needs and financial situation may change over time, it is critical to understand and review children's life insurance policies on a regular basis to decide if the policies are right for you and your child. If you are considering buying, replacing, or reviewing your children's insurance policy, please consider the following list of suggestions:
It is important to buy the best coverage for your child or grandchild that will meet your needs, their needs, and your budget. Use the Internet to compare policies and to request child life insurance quotes. Costs for similar policies from different insurance companies will often vary. Always request a formal children's life insurance quote before you choose to fill out an application. Also, be aware of duplicate coverage between the policy the child already has and the policy that you are considering.
After requesting child life insurance quotes and submitting an application, make sure to read the policy thoroughly once it is received to determine if there are any errors or mistakes. Contact your agent or insurance company immediately if you find any errors or need an explanation about a specific portion of the policy. Most child life insurance policies have a 10 to 30 day free-look period (depending on state insurance rules and regulations). So don't postpone reading the policy!
Access your State's Department of Insurance website to see if your insurance company and agent are licensed to sell insurance and if they have any complaints against them. Make sure to check the license and complaint status before you purchase juvenile life insurance.
If an insurance company or agent is unwilling to explain a child life insurance quote or policy to your complete satisfaction, do not buy or sign the policy. If you need clarification, ask the company or agent questions and take notes to document the answers. Try to have a written record of what was said for future reference and for comparison when shopping for different policies.
If your juvenile life insurance policy says something different or contrary to what the agent told you, that should raise a red flag. Remember, it's not what the agent told you, but what the policy says that the insurance company will claim to be controlling.
Falsifying or omitting any information on an application can cause your insurance company to deny your claim or cancel the policy. Never leave blanks on an application and instead write in "n/a" or "not applicable."
You do not have to purchase child life insurance the first time you speak or meet with an agent. Insurance companies and agents should never use high-pressure sales tactics. You can say "No" and not feel obligated to make a purchase on the spot. Always seek a second opinion or the advice of someone you trust if you are unsure about making a child life insurance purchase.
When involved with a monthly, quarterly, or annual payment plan, be sure to pay your premiums on time and make time allowances for mailing. Do not assume the insurance company offers a grace period for late payments. A late payment may be a valid reason for an insurance company to cancel your child's life insurance policy. Always pay your premium in the form of a check or money order payable to the insurance company, agency name, or third party billing institution as instructed.
If you bought a life insurance policy for your minor child or grandchild, make sure you have the peace of mind that you did not overpay for the child's life insurance by using the form below to contact our law firm for a free evaluation of your policy.
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