The teenage years are generally spent believing that you will never die, no matter what happens, than planning for that eventuality. If you can find a teenager that will pay for their own life insurance, I will take them as either a scientific experiment or a good candidate for psychotherapy! However, the teen years can be a fantastic time for parents to buy life insurance for their teens, in some circumstances. We help you make the decision today.
The teen years are a great time to get life insurance. Buying a policy at this time offers the main benefits of:
- Guaranteed future insurability – most chronic conditions do not show up until after the teen years, and once you have a policy most insurers cannot cancel it. If you have a family history of particular chronic conditions, this aspect is especially important.
- The opportunity for much cheaper life insurance for your teen later in life if you choose level premiums.
- For younger teens, their life insurance could help YOU through a very difficult grieving time if you were to lose them.
Life insurance for teens is generally very cost effective, unless you have taken the level premiums strategy. It needs only be for a nominal amount if the purpose is to guarantee insurability in the future; the minimum for many insurers is around $100,000.
If you are buying for future insurability, make sure that the policy you choose offers that option. You should also make sure that your teen won’t need to be switched to an adult policy and risk losing that guarantee; some policies will only cover teens until the age of 16 or 18, at which time they must move to a different structure.
If you’re buying to help make their life insurance cheaper in adulthood by paying the initially high level premiums, you need some certainty that they’re going to keep up the policy … or all that extra cash will have been wasted.