September was Life Insurance Awareness Month, but it is always a good time to explore the insurance options that will help to protect your family. And especially when it comes to your kids, it’s never too late to start considering what benefits would enhance their financial future.

When I see my adult clients procrastinating about buying life insurance or making sure their insurance portfolios properly cover their assets, I remind them about the potential benefits of a life insurance policy for their kids.

If you gift your children a life insurance policy at a young age, they won’t have to worry about medical underwriting and exorbitant costs. While it’s important to understand that a gifted life insurance policy may not be sufficient to cover all future life changes, it will assist with establishing a preliminary protection plan. Such a plan could be a critical component of your children’s long-term wealth protection and preservation strategy.

Depending on the carrier, there can be provisions within a life insurance contract that will allow your children to increase their life insurance limit as they grow into adulthood and experience life events. Examples of such life events include getting married, having children of their own, or taking out a mortgage and buying a house. Your children will pay any premium increase when they elect to increase coverage, but there is no medical underwriting involved at the outset.

Life insurance for kids is an often overlooked product, but my opinion is that it can have exponential benefits. Talk to your insurance provider about the cost to purchase a life insurance plan for your young children now, and learn more about how that benefit can grow over their lifetime.

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Linda Rey is a licensed insurance agent at Rey Insurance with a broad spectrum of expertise in life, accident, health, property and casualty insurance as well as retirement planning and college funding strategies.

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