Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

What You Need to Know About Child Life Insurance

By James Garfinkel Subscribe to RSS | January 11th 2012 | Views:
loading
 
  



One of the hottest new trends in insurance is also one of the oldest – child life insurance. Parents and grandparents are increasingly securing permanent insurance policies for a newborn or young children and taking advantage of the low cost of insurance, tax-deferred growth and lifelong savings to provide a lifetime of benefits that extend from this generation to the next.

Historically, child life insurance (often referred to as juvenile life insurance) was marketed as an affordable way for grieving parents to pay funeral and burial expenses. Over time, insurance companies recognized that a child life insurance policy has potential to provide for education, a future home or business and even retirement.

Whole Life Insurance

Whole life insurance has a built-in savings component that accumulates cash value through interest and dividends that grow tax-free. The funds can be used to pay for future premiums and are accessible at any time for any purpose. By purchasing a whole life insurance policy for a child, a parent is able to lock-in cheap premium rates since the risk of mortality is very low. More to the point, by the time the child has an insurance need of his or her own, he or she could have 30+ years of growth inside the policy – and the cash value can continue to grow as he or she gets older.

Indexed Life Insurance

In indexed life insurance policies, cash value increases are linked to the performance of popular equity indexes and offer downside protection in case the market declines. Some policies provide for both equity participation and a guaranteed minimum rate of interest. Such products may be suitable for parents saving for college or certain defined planning goals who want to avoid the risk or volatility of stocks, bonds, mutual funds and exchange traded products.

Insurability

Another reason parents and grandparents choose child life insurance is insurability. A family history of diabetes, hypertension, or weight issues may impact future insurability. By securing insurance for a child when he or she is presumed to be in optimal health, parents can ensure their children and future grandchildren are protected regardless of future health.

Taxes

Let’s face it. No one likes paying taxes. Luckily, life insurance is one of the most favored financial products in the world. The interest and dividend growth of the cash value of a whole life policy is tax-deferred. Only withdrawals that are greater than premiums paid are treated as income for tax purposes. If you borrow from the cash value of a life insurance policy, no taxes are due as long as the policy remains in force.

James Garfinkel - About Author:
James Olion, founder and CEO of New Amsterdam Life Insurance Foundation. Find out more about Child Life Insurance and Buy Whole Life Insurance and child life insurance quotes at http://newamsterdamlife.com.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/insurance-articles/what-you-need-to-know-about-child-life-insurance.htm

Related Insurance Articles Subscribe to RSS

Get relief from day to day mishaps and provide insurance coverage for your van today
Published by Gregorypeck on February 25th 2012 | Insurance
For most manufacturing or service providing companies, it is the first priority to have a good runni...
 
Things to remember for best classic car insurance
Published by Morganbrittany on February 24th 2012 | Insurance
Classic cars are the old cars desired by many. People usually mix classic cars with the antique cars...
 
Benefits of getting insurance policy specially when working abroad in search of earning and job
Published by Andy Robert on December 22nd 2011 | Insurance
Although the insurance policy might look expensive at first sight but the in-fact insurance policy i...
 
Steps to make good car insurance comparison
Published by Geenadavis on April 20th 2012 | Insurance
You have always heard how much important car insurance comparison is, but you are not familiar with ...
 
Significance of business interruption insurance for corporate houses
Published by Andrew Edwards on December 14th 2011 | Insurance
To reach the elevation of success we have to plan our business administration programs...
 
Take backpacker insurance seriously while planning to travel overseas
Published by Herry Smith on January 23rd 2012 | Insurance
Backpacker travel insurance provides you the security level so that you can enjoy your holidays with...
 
An easy guide to getting reliable auto insurance
Published by Jerry on March 12th 2012 | Insurance
Finding the right auto insurance product for yourself can be a difficult task if you approach it in ...
 
Best car insurance here in Minnesota
Published by Autoinsurances on January 13th 2012 | Insurance
Car insurance is a requirement for any motorist who wants to drive on the Minnesota roads. It is ill...
 
Get your health cover from Georgia health insurance plan
Published by Ricky Martin on June 20th 2012 | Insurance
People can cover their health related issues from Georgia health insurance plan, and can enjoy your ...
 
All new drivers should be conversant with laws regarding auto insurance!
Published by Jerry on March 10th 2012 | Insurance
When you are a first time car owner or buyer, there are usually many things that you may need to edu...
 
Buying child insurance not an impulse decision
Published by Soloman on November 28th 2011 | Insurance
There is a bewildering range of choices available today in the child insurance plan market. There ar...
 
Business insurance plans for online business
Published by Andrew Edwards on May 10th 2012 | Insurance
While starting new online business consider business insurance as the prime requirement of your comp...
 
Finding cheap car insurance with best coverage
Published by Robmichae on March 16th 2012 | Insurance
Everybody is seeking ways to reduce their monthly expenses in today’s economy. As a matter of fact...
 
Classics car insurance at reasonable rates
Published by Johnjakson on April 6th 2012 | Insurance
Most of the insurance companies see classics car as higher risk – as not all automobiles were prod...
 
Provide the best insurance for your car with the best insurance quotes
Published by Jameshaven on March 5th 2012 | Insurance
You just purchased a car recently, it is now very important for you to secure your car with the car ...
 
In Nevada information about auto insurance is crucial
Published by Alabamaauto Insurances on January 17th 2012 | Finance
It’s not very hard to get cheap rates for auto insurance in the state of Nevada as there are a lot...
 
Secure your rights with public liability insurance
Published by Lauraallen on April 4th 2012 | Insurance
It has been notice in past few years that people are highly demanding for the insurance of their bus...
 
A quick guide to reducing your auto insurance premium rates
Published by Jerry on March 10th 2012 | Insurance
In this day and age, it has become very important that one tries to get a decent means of transport....
 
Vauxhall Car Insurance is best way to get insurance
Published by Ahmadgill on January 17th 2012 | Insurance
Vauxhall Car Insurance Quote can give you help if you want to get insurance for your vehicle. It is ...
 
Complimentary commercial insurance quotes for traders
Published by Andrew Edwards on March 15th 2012 | Insurance
There are basic needs of every trade person which are fulfilled by protective plans...