Why Is Life Insurance Important When a Child Is Born or Adopted?

Video Transcript

"It's crucial for parents to have life insurance when having a child or adopting a child as well. Life insurance can provide benefits to payoff things like the mortgage and provide benefit to payoff future children's education, future cost of living, clothes, food, all those things, the income replacement which may be needed if the other spouse is stay at home or doesn't produce enough income to support the family, that sort of income replacement would be needed for the family to maintain their current lifestyle. Adding another child to sort of the equation adds to the amount of coverage that you will need because of the things I mentioned like education expenses, food, clothing, etcetera. Now life insurance can also be obtained on children. And with children, life insurance is not mainly bought for the death benefit but it's meant to provide the child with guaranteed coverage so that when they are older, they'll have the coverage without having to go through medical exams, etcetera. Now they will have this coverage as long as the premiums are paid. And typically the premiums are very low, you can obtain a great deal of coverage, 100,000, 500,000 even a million dollars for usually 50 to 100 dollars a month. So this is a nice thing to be able to provide your children with so that in the future they don't have to go out and get this insurance on their own."