If the child had an extended illness, chances are there are medical bills to be paid because health insurance coverage may have expired. There can also be bills for treatments and procedures not covered by the family health care plan. In addition to these expenses are the ever-rising costs associated with burial. Parents will want to give their children a nice funeral because it is the last thing they will ever be able to do for them. Part of the burial cost may also include purchasing a final resting place for the child if the family doesn't currently own a burial site.
Even if the parents have sufficient personal wealth to cover any final expenses of a deceased child, life insurance can still be useful. The proceeds from a life insurance policy can be used to make a donation to a charitable organization in the child's memory. It can also be used to set up a scholarship fund at the child's school so that deserving students who are financially less fortunate can continue their education. Other parents may choose to establish their own foundation to encourage research to find a cure for the child's illness. All of these uses help ease the grief of the child's passing because parents know that from that sad event some good will come.
While the proceeds from a life insurance policy are usually connected with after-death events, they don't have to be used in that way. Insuring children while they are in good health means that they will have life insurance though out their lives even if they develop medical conditions in the future. If the policy includes an additional insurance rider, the child will be guaranteed the ability to purchase additional insurance as an adult at specific times. Premiums for face amount increases will be based on the child's health status at the time the original policy was purchased even if the child has current health problems.
And finally, life insurance can certainly be used to finance life events too. A college education, a dream wedding or the purchase of a first home can all be made possible by life insurance. Adult children have a significant cash reserve at their disposal because of the accumulated cash value of that life insurance policy Mom and Dad had the foresight to purchase all those years ago. To review your families Life insurance call us today 314-351-HALO(4256).