Newborn Life Insurance Cost: Why You Need it NOW!

If you’re looking for Newborn life insurance cost & benefits this is the article for you!

Hmmm, life insurance for a newborn baby sounds highly suspect, doesn’t it? As we all know companies are always searching for new ways to get people to spend more cash and life insurers are no exception.

There’s something a little bit chilling about combining the celebration of birth with life insurance…RIGHT? 

Well, I can honestly say I don’t feel this way. 

The thing is, there are more perks when it comes to life insurance for a newborn baby than immediately come to mind and it’s not all morbid.

So let’s take a look now to see if new baby life insurance is something you should consider…and why.

The concept of life insurance is pretty simple. All of us are financially vulnerable during specific periods in our lives. It’s most worrisome when we have dependents (children or otherwise), a mortgage and debt…

…but this extends to the day we die as funerals are costly and bills don’t evaporate when we move on. This is where life insurance companies come in. They provide a financial safety net for a period of time for an agreed-to price.

There are two main types of life insurance: term life insurance and permanent life insurance.

Term is the most affordable option as a death benefit is not guaranteed, so the life insurance company passes these savings on to you.

Permanent life insurance is much more expensive because you’re guaranteed to receive a payout as long as you keep up with your premiums. 

This coverage comes in many different packages, but most have a cash value accumulation component that can be used throughout your lifetime.

Term life insurance works for most people most of the time. But permanent life insurance is a great tool if you need coverage until the day you die and you have enough cash to maintain the payments.

As you can see, life insurance offers financial protection for those you love should a worst-case scenario unfold.

As you can see most of what I’m talking about has to do with the loss of income. This is the main reason people purchase coverage – especially term life insurance.

So I am sure you are wondering why anyone would ever think about the cost of a funeral for their child.

Man, that’s just plain depressing. Especially when you’re talking about a newborn baby. Unfortunately, life happens and people die.

Even very young people.

This is why life insurance for children is a product. Sadly critical illness can and does claim the lives of infants. 

Thankfully this is not common…but if something does occur at least your financially prepared. 

The cost of a funeral is staggering and for most, it’s a serious financial setback.

Hey, who has an extra $10K sitting around – and especially during an extraordinarily stressful period. 

The rationale behind purchasing final expense insurance for an adult is the same as it is for a child. It covers the cost of a funeral and keeps the family from being thrown into a financial tailspin when they least need it.

Here are some other thoughts…

A life insurance policy for a new born baby is incredibly affordable, so for a few bucks per month you can rest a little easier. 

There are also a number of other very solid reasons to buy life insurance for your new born: 

Newborn life insurance cost is very low. Purchasing coverage for your baby locks them in at VERY affordable rates and protects them no matter what the future holds –  especially if you have a Guaranteed Insurability Rider! 

A guaranteed insurability rider enables your child to purchase more insurance without further evidence of insurability.

This is a terrific option for your kid to have if they are diagnosed with a medical or psychological condition at some point that boots them into a high-risk category. It means they can still buy life insurance at a reasonable rate.

The best part? This rider only costs a few dollars more per month. Planning ahead helps your child protect his or her loved ones in the future…

…and it’s one of my favourite reasons to buy life insurance for a new born baby. 

“I bought my daughter a $250,000 whole life policy a month after she was born. It has a guaranteed insurability option on it which says that between the ages of 25 and 45 she can qualify for more life insurance without any medical underwriting.”

 

“None of know how healthy we’ll be later in life, but we can assume we won’t be as healthy in our 40s as we are in our teens. If you wind up with weight issues, diabetes, a melanoma or anything else, you can still qualify for greater life insurance without health being a factor.”

 

Setting Up Our Kids For A Successful Retirement, Forbes 

• your child is entitled to non-smoker rates no matter what happens in the future
• if your child takes up a hazardous sport in their early 20’s, no need to worry
• you can add a critical illness protection rider for up to $75,000 at a very reasonable cost…we’ll save the critical illness for children discussion for another post

Another option is a Universal life policy. This is permanent coverage – but it’s far more affordable because it doesn’t usually have the same cash value accumulation.

Check out my latest article about Universal Life Insurance if you want more information about this type of policy.

After being on this planet for more than 50 years I can honestly say that planning is the key to success. This comes from many years of NOT doing a stellar job when it comes to this aspect of my life.

Like many people, I have some regrets.

The good news is I learn from my mistakes. 

Family planning can save your loved ones tens of thousands of dollars and life insurance for new borns is no exception. If you can afford it why not buy your children life insurance?

Set up correctly, it gives your kids access to future insurance that’s affordable, a nest egg and it can help your family in case something tragic unfolds.

All of this and it’s super affordable.