How Does Child Life Insurance Help a Child?

Right now, when a child is young, strong, and healthy, life insurance is obtainable at a minimum cost. But if a child develops a problem like a chronic disease, life insurance can be almost impossible to obtain. So signing up for a low premium term life insurance policy now, with a guaranteed periodic purchase option, will make it possible for them to have life insurance as adults.

Another possibility for them is to purchase a whole life insurance policy, which will last for the rest of their lives. Their age and health status won't make any difference, nor will it matter if they serve in the military or have dangerous occupation hazards.

Such child life insurance is perfect for planning for the future because of the cash value the plan would accumulate. As an adult, they could borrow against this value or stop the policy and withdraw the money (to pay for college or any number of things).