For many new parents, life insurance for their babies isn’t at the top of their priority list, but should be.
A $50,000 life insurance policy can be as low as $15/month and can last for the child’s life. Policies can be issued in less than 24 hours.
Life insurance can be cancelled at any time without any penalties or fees. This is why many parents like to get their babies life insurance during the “critical” years. Once these “critical” years pass, parents may decide to continue the policy or cancel it.
We understand life insurance for infants is a sensitive topic, but in the event something ever happens to your baby, a life insurance policy will become very important. Please know we don’t write this article to be negative, but feel it’s our responsibility to educate parents.
The purpose of life insurance is not only to cover your baby in the event something happens, but it’s also there in the event your child is diagnosed with something (like Asthma, Diabetes, Cancer, Leukemia, Depression, etc.. ) and becomes uninsurable.
Here are a few examples of friends/clients that we know that didn’t have life insurance for their babies/infants and wish they did.
EXAMPLE #1: Sudden Infant Death Syndrome or SIDS
SIDS is the sudden, unexplained death (usually during sleep) of a child younger than 1 year old. The cause is unknown, almost all SIDS deaths occur without any warnings or symptoms.
SIDS is the leading cause of death in babies that are between 1- 12 months old. About 2300 babies pass away in the United States from SIDS each year (thousands more worldwide).
One night, friends of ours went to the movies for a date night and left their 6 month old baby with a sitter. The babysitter put the baby to bed and when the parents got home, their baby had passed away from SIDS. The husband was unemployed and the mother was a hairdresser and couldn’t take time off. She had to go back to work a week after her child’s death to financially support the family. I couldn’t imagine how awful this must have been. If the baby had life insurance, the parents would have had a source of income and take the necessary time to grieve.
For tips to prevent SIDS, visit http://www.cjsids.org/resource-center/risk-reduction-strategy.html .
EXAMPLE #2: Autism and Qualifying for Life Insurance Later in Life
Autism can appear very early in brain development, but the most obvious signs and symptoms of autism show up between 2-3 years of age. Autism affects 1 in 88 American children (this has increased 10 times in the past 40 years). Additionally, autism is 4-5 times more common in boys than girls.
Once a child is diagnosed with Autism, it is common for them to start taking anti-depressants. Although Autistic children are not “depressed” or being treated for depression, medication used to treat depression is also used for Autism. Life insurance carriers are very strict when an individual is prescribed anti-depressants and this may make your child uninsurable in the future. Therefore, you’ll want to get a life insurance policy BEFORE your child is diagnosed with any disorder.
Autism spectrum disorder (ASD) and autism are disorders of brain development. Autism can be associated with:
– social interaction
– verbal and nonverbal communication
– repetitive behaviors
– intellectual disability,
– difficulties in motor coordination and attention/focus
– sleep and gastrointentinal disturbances.
EXAMPLE #3: Asthma, Diabetes, Cancer, Leukemia…etc.
Insurance companies DO NOT like to cover people with Asthma and many other pre-existing conditions.
For example, if you have Asthma and can even qualify for life insurance, your rates will most likely be much higher than someone without Asthma.
One of our clients purchased a small life insurance policy for their son when he was 2 years old. The policy was $15/mo. At the age of 3, this little guy was diagnosed with severe Asthma. The likelihood of qualifying for a policy later in life may be slim to none.
It is best to get life insurance BEFORE any pre-existing conditions arise. This is why it’s a good idea to get a policy for your babies, infants and children.
For more information about life insurance, visit https://einhorninsurance.com/california-term-life-insurance/ or call 858-336-4644.