Universal life insurance for kids can be a good investment for their future. One of the benefits of purchasing indexed universal life insurance on children is the cash value. If structured properly, you can access the cash value on an income tax-free basis. The details of this benefit are outside the scope of this article¹.
In the unfortunate event of a child's passing, the policy provides a death benefit that can help cover funeral expenses, medical bills, and offer financial support to the grieving family².
Many financial planners say that children don’t need life insurance. However, there are some reasons why you might consider buying life insurance for your child. One reason is that it guarantees insurability⁴.
(1) 4 Reasons Why Indexed Universal Life Insurance Is A Good Investment For .... https://myfamilylifeinsurance.com/2022/01/03/indexed-universal-life-insurance-iul-children-grandchildren/. (2) Child IULs: Securing Your Child's Financial Future - LinkedIn. https://www.linkedin.com/pulse/unlocking-potential-child-indexed-universal-life-insurance-berry. (3) Life Insurance For Children: Pros & Cons - Forbes. https://www.forbes.com/advisor/life-insurance/life-insurance-for-children/. (4) Is an IUL or 529 plan the Best Way To Save for College?. https://indexuniversallife.net/iul-or-529/. (5) Child Life Insurance: What Is It and Should You Buy It?. https://www.nerdwallet.com/article/insurance/should-you-buy-life-insurance-for-children.