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Insurance for Children: 7 Dynamic Reasons of Getting Life Insurance for Your Children in the Philippines
Insurance for Children: 7 Dynamic Reasons of Getting Life Insurance for Your Children in the Philippines
Life insurance is often thought of as necessary only for adults with financial dependents, but getting life insurance for children also comes with unique benefits. Here are seven compelling reasons why Filipino parents should consider securing life insurance for their children.
1. Affordable Premiums
Life insurance premiums for children are generally very economical because they are typically in good health and have a long life expectancy. Buying life insurance for children at a young age locks in lower premiums for the duration of the policy. Over time, the cost savings can be substantial. Wealth Arki highlights that purchasing life insurance early results in significant long-term savings, allowing parents to allocate funds to other financial priorities.
2. Guaranteed Insurability
Obtaining life insurance for a child ensures their future insurability, regardless of any health issues that may arise later in life. This means they will always have access to life insurance coverage, even if they develop medical conditions that would otherwise make it difficult to qualify for a policy. Ready To Be Rich emphasizes that this is particularly crucial for families with a history of hereditary medical conditions.
3. Savings and Investment Component
Certain life insurance policies, such as Whole Life Insurance and Universal Life Insurance, include a savings or investment component that builds cash value over time. This cash value can be accessed later in life, providing financial flexibility for major expenses. Wealth Arki notes that this accumulated cash value can be borrowed against to fund a child’s college education, a business venture, or even a home purchase.
4. Financial Protection
In the unfortunate event of a child’s passing, life insurance can help cover funeral expenses and related costs. These unexpected expenses can place an additional financial burden on grieving families. Ready To Be Rich stresses that having a policy in place prevents financial distress during an already difficult time, allowing families to focus on healing rather than financial concerns.
5. Financial and Legacy Planning
Life insurance plays a key role in comprehensive financial and legacy planning. Securing a policy for a child not only provides immediate financial protection but also lays the foundation for long-term financial security. Wealth Arkirecommends integrating life insurance into an overall family financial plan to ensure coverage for all members.
6. Teaching Financial Responsibility
Life insurance can serve as a practical tool for teaching children about financial responsibility. As they grow older, parents can educate them on how the policy works, the importance of savings, and the value of long-term financial planning. Ready To Be Rich advocates using real-world financial tools, like life insurance, to instill good money habits in children from an early age.
7. Flexible Financial Resource
Some life insurance policies allow for withdrawals or loans against the accumulated cash value. This feature provides parents with an additional financial resource for education expenses, medical emergencies, or other unexpected financial needs. Wealth Arki highlights that having access to these funds creates a safety net, enhancing overall family financial security.
Conclusion
Securing life insurance for children offers numerous benefits, including low premiums, guaranteed insurability, a savings component, financial protection, legacy planning, financial education, and flexible cash value options. These advantages make it a smart choice for Filipino parents seeking to safeguard their child’s future. By leveraging insights from Wealth Arki and Ready To Be Rich, parents can make informed decisions about incorporating life insurance into their overall financial plan.
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A multi-award-winning blogger and advocate for OFWs and investment literacy; recipient of the Mass Media Advocacy Award, Philippine Expat Blog Award, and Most Outstanding Balikbayan Award. Her first book, The Global Filipino Bloggers OFW Edition, was launched at the Philippine Embassy in Kuwait. A certified Registered Financial Planner of the Philippines specializing in the Stock Market. A recognized author of the National Book Development Board of the Philippines. Co-founder of Teachers Specialist Organization in Kuwait (TSOK) and Filipino Bloggers in Kuwait (FBK). An international member of writing and poetry. Published more than 10 books. Read more: About DiaryNiGracia
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