Family finance: life insurance for your kids?
Whilst I’m sure that many of us think of a lot of things for children, life insurance for kids generally doesn’t figure in those thoughts.
And yet, it should really. For a start, many products coming under the heading of “life insurance” are really savings vehicles and those designed for children are no different. Well, they’re different in one key area and that’s the length of time that the policies are generally written for. Typically an adult life insurance savings vehicle has a term of 10 years but the childrens’ ones are usually designed to mature when they do ie at age 18.
That extra time makes a big difference in the performance of some of these products. By and large the first couple of years of any savings style life insurance product goes largely in charges but once that’s in the past, they’re generally pretty cheap forms of investment and you’ve got a whole lot of time to play with when it’s a policy for a child.
The other aspect that I’m sure we’d all rather not think about is that insurance element. Much as many of us put such issues to the back of our minds it’s something that’s best not left neglected as, sadly, it does happen.
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Copyright © 2008-2010 by Arnold Stewart. All rights reserved.