Issue link: http://read.dmtmag.com/i/74535
Six Reasons Why Life Insurance for Our Children Makes Sense ... continued from page 27 to purchasing the coverage they were self-insured or in other words assumed all of the possible risks themselves. Insured children have protection for a greater portion of their lives, a better value for the premiums paid. LOWER RATES Premiums for children are much lower than those for adults due to the fact 3 insurance rates are based on age and risk both of which are lower for children. If permanent insurance like whole life is chosen, that translates to "locking in" a low rate for a lifetime which can also translate to substantial premium savings. 4 MOST CHILDREN QUALIFY It can be much easier to purchase life insurance early in life than delaying the decision. Children as a whole have far fewer medical issues than adults that can complicate the underwriting process. An adult with a serious medical condition can face higher rates or even be declined for coverage. A Guaranteed Insurability Purchase Option rider, if purchased along with a policy, can provide further protection by enabling a child who acquires a medical condition later in life to purchase additional insurance as needs for coverage change. The rider itself would also be available at lower rates. Permanent life insurance premiums have two 5 CASH VALUE ACCUMULATION components, a portion pays for the cost of insurance and a portion goes to savings. By purchasing permanent life insurance early in life there is a longer period of time for the savings component to grow. A child can accumulate substantial cash value that can be accessed later in life through low-cost loans or withdrawal for various life stage needs. Left long enough to grow, the cash value can provide a substantial supplement to retirement income needs. COVER FINAL EXPENSES 6 It is inevitable that we come to the reason we are least apt to consider ... that is the fi nancial hardship an untimely and unexpected loss can create for a family. If emergency funds are not available to cover fi nal expenses a domino effect can impact other siblings in the home as well as the parents. LIFE INSURANCE MAKES SENSE The fi ve reasons above combined with the valuable 'number one' reason of benefi ts afforded by membership in a fraternal society makes six solid reasons for thinking about the unthinkable. This is where a professional life insurance producer like your local NCSF life producer can help with this diffi cult decision. He or she has the tools, products and experience to guide you through the process. The products available through National Catholic Society of Foresters are competitively priced and varied to meet your particular needs. A summary of the choices available are below and a more detailed comparison can be found on page 29. The permanent life insurance products referenced above: Whole Life1 Premium Whole Life1 , 20-Payment Life1 and Single provide lifetime protection and cash values. Our Start Smart ... Term to 252 certifi cate provides $10,000 of term coverage to age 25 for a single $125 payment after which it can be converted to a permanent plan – a very smart way to start out with a minimum of cost. Finally, there are term products3 that provide coverage for a specifi c period of time – 10, 20, or 30 years – until a child reaches an age when they can make decisions on their own. These are low cost policies that do not build cash values but provide the basic underlying protection needed. If you are ready to consider this controversial but important topic, call your National Catholic Society of Foresters life producer or the Home Offi ce sales support staff today to get started. Products/features may not be available in all states. 1- Form 08CE-WL; Form 07CE-SPWL. 2- Form 07SSB; Form 07SSB2; Form 07SSB3. 3- Form 07CE-TRM. Riders – 08RI-GIPO. 28 National Catholic Forester