The Gift of Protection: Why Life Insurance for Children is a Thoughtful Investment
December 12, 2024 | 5 min read
As the holiday season approaches, financial advisors and insurance professionals often consider innovative ways to support their clients’ needs. While traditional gifts bring temporary joy, some investments, like life insurance for children, provide long-lasting benefits and security. Encouraging your clients to explore this unique option can set them apart as forward-thinking advisors who prioritize their clients’ financial well-being.
Why Suggest Life Insurance for Children to Your Clients?
Life insurance is commonly associated with adults, but there are strategic reasons to discuss policies for children with your clients. It’s a proactive move that ensures financial stability and safeguards against uncertainties, making it a valuable tool in their portfolio planning.
1. Locking in Insurability for the Future
Life insurance policies for children guarantee their insurability for life, regardless of future health challenges. With health statistics painting a concerning picture—37.3 million Americans diagnosed with diabetes (including 8.5 million undiagnosed cases) according to the American Diabetes Association, nearly 40% of Americans facing a cancer diagnosis in their lifetime per the National Cancer Institute, and cardiovascular diseases affecting half of U.S. adults per the American Heart Association—ensuring insurability early is a compelling benefit.
2. Providing Affordable Premiums
Policies for children come with lower premiums compared to adult policies. Highlight to your clients that starting early secures these lower rates for the policy’s life. This cost-effective approach ensures their children or grandchildren maintain coverage affordably into adulthood.
3. Offering a Cash Value Component
Permanent life insurance policies, such as whole life insurance, build cash value over time. This growing financial asset can be leveraged for significant milestones like education, home purchases, or entrepreneurial ventures. It’s a feature that enhances the appeal of life insurance as a multi-faceted financial tool.
4. Protecting Against the Unexpected
Although difficult to discuss, advising your clients on the value of life insurance as a safety net can resonate. In the rare event of an untimely loss, having a policy in place covers expenses such as medical bills and funeral costs, alleviating financial stress during emotional hardship.
Positioning Long-Term Financial Security for Clients
Advisors can position life insurance for children as a cornerstone of financial planning. Many permanent policies include riders that expand coverage as children grow, allowing flexibility for life’s evolving demands. This adaptability ensures that your clients’ families are prepared for future responsibilities.
Assisting Your Clients in Policy Selection
Guide your clients in evaluating their goals and budget when considering life insurance for children. Educate them on the distinctions between whole life and term life policies and help them choose a solution tailored to their family’s needs. Offering your expertise ensures they understand the value of their investment.
Elevating Client Relationships During the Holidays
The holidays are an ideal time to introduce this concept. Framing life insurance as a lasting gift reflects your dedication to your clients’ long-term success. This thoughtful suggestion positions you as a trusted partner in their financial journey.
Call to Action
At Regis Financial Partners, we specialize in equipping advisors like you with the tools and insights to present meaningful solutions to your clients. Connect with us today to explore how life insurance for children can enhance your client offerings this holiday season. Together, we can help families build financial security and peace of mind.
Sources:
⚪ American Diabetes Association, “Diabetes Statistics,” https://diabetesresearch.org/diabetes-statistics/
⚪ National Cancer Institute, “Cancer Statistics,” https://www.cancer.gov/about-cancer/understanding/statistics
⚪ American Heart Association, “Cardiovascular Diseases Affect Nearly Half of American Adults, Statistics Show,” https://www.heart.org/en/news/2019/01/31/cardiovascular-diseases-affect-nearly-half-of-american-adults-statistics-show
Note: This content is for informational purposes only and not intended as tax or legal advice. Advisors should consult with legal professionals to ensure these strategies fit their clients’ specific needs.
