Prior to blogging I worked as a Marketing Specialist for London Life (Great West Life).
I was working there when I found out I was pregnant with Madison, and I was still working there until long after Chloe was born.
I won’t sing the praises of insurance companies by any means, but I will tell you something I learned while working there;
Life insurance has a stigma attached to it.
People grudgingly purchase life insurance because they think they have to – but they know that it’s a money-maker for the companies and that premiums are expensive and that (some) salesmen are greasy.
No one really looks forward to purchasing a life insurance policy – it’s shrouded in mystery as to “what are they selling you?” and “will they really come through in the end?” There are also lots of different types of life insurance which doesn’t help the matters. For example, you might not have heard of keyman insurance which is a policy taken out by a business to insure their most valuable employee’s. Maybe you’ve heard of it and maybe you’re a business owner and it would be useful for you and you want to speak to a broker about it; my point is that there are so many different types of insurance that it can get confusing.
I can’t attest to whether your company will come through or not. I can’t even attest to whether mine will or not, but I can tell you why you should change your perception of life insurance – particularly as it applies to your kids. I was contacting an insurance company the other day as they had a special offer discount when getting a health insurance quote for families and as ours was due to be renewed soon I thought I would call them to find out more about the offer, after receiving my quote they then asked if there was anything else they could help me with and when I said no they then went on to ask if I had ever considered Life Insurance for my kids, like you I was stumped as to why I would want to take life insurance out on my kids, my first thoughts ran to the morbid and unthinkable – but here’s why we bought life insurance for our girls:
1. even though your precious bundle of joy was born a perfect angel – the world today does pose risks. Juvenile diabetes, childhood leukaemia, even illnesses that can happen to you (breast cancer) can have an impact on whether or not your child will be approved for insurance in the future.
Buying insurance now, while they are small and perfect – sets them up with a policy that they will have for the rest of their lives – no matter what happens tomorrow. If you have any property damage and would like some public liability insurance then you may want to check out public liability insurance from Tradesman Saver after reading this article.
2. I bought policies (20-pay life) for the girls that we pay the premium for, but we also pay an additional amount which the insurance company will invest and earn money on etc. I won’t go into the workings on their side of the page, but what it means for Madison and Chloe is that at age 25 they will have access to a large amount of money.
Money they can access while they are ALIVE.
There is no #3.
I did not buy life insurance on my children with any expectation that they will pass. There were no morbid thoughts of “what if” or funeral costs etc. We bought insurance as a gift to each of them.
At age 21 each girl will have a fully-paid insurance policy worth in excess of ~$329,000 that they can use as collateral for any loans or business opportunities they want to investigate. (and will continue to grow exponentially for as long as they live). If the cash remains in the account, it will continue to grow until say age 85, they will each have a policy worth over a million dollars!
They will have a policy that will protect their children and spouse should anything happen to them (when they reach age 100 of course). So I’ve gifted both my daughters and their daughters with some security.
At age 25 my girls will have access to ~$40,000 in built-up savings from the over-funding Hubby and I started when they were born. They can access this money at anytime and for any reason, without it affecting or cancelling the life insurance policy itself.
That’s a substantial gift right?
- That’s a life insurance policy that they will have forever.
- That’s a substantial down payment on their first home, or enough to cover graduate school so they can start their lives with no student loans to overcome.
- That’s peace for me, knowing that should anything happen to me – any severe illness that might be deemed genetic – won’t make buying insurance impossible/exorbitantly expensive for the girls down the road.
I can only give you an idea of what we pay, because everyone’s health and circumstances are different and the price could also fluctuate with the type of policy you buy – but we pay ~$1,350 per year (per child) and it includes everything I mentioned above.
Without going into the numbers too much – that means we will pay in approximately $28,350 over 21 years and the girls will get a paid-up policy worth more than $250,000 PLUS access to the cash built up of another ~$40,000.
It was for me.
This is not a sponsored post. I did not, and will not, receive any monies for writing it – it is something I believe in and wanted to share.
Have a great one!
|Between Naps on the Porch|