Call or Text Us Today: 856-444-LIFE (5433)
Leonard Financial Solutions
  • Home
  • About Us
    • Meet our Team
    • Client Testimonials
    • Refer a Friend
    • Insurance Carriers
    • Agency Photo Gallery
    • Accessibility Statement​
    • Blog
    • News
  • Service
    • Report a Claim
    • Make a Payment
    • Policy Review
    • Update Contact Info
    • Life Insurance Application
    • Policy Changes
    • Proof of Insurance
    • Contact My Carrier
    • Online Documents
    • Request a Free Consultation
  • Individual
    • Life Insurance >
      • Term Life Insurance
      • Whole Life Insurance
      • Final Expense Insurance
      • Individual Life Insurance
    • Medicare Supplemental
    • Financial Planning
    • 529 Plan Alternatives
    • Social Security
    • Disability Income Insurance
    • Annuities
    • Health Insurance
    • Property & Casualty >
      • Auto Insurance
      • Boating Insurance
      • Home Insurance
      • Motorcycle Insurance
      • Renters Insurance
      • Umbrella Insurance
      • RV Insurance
    • Long Term Care Insurance
  • Business
    • Life Insurance Options for Businesses
    • Disability Insurance Options for Businesses
    • Group Benefits
    • Medicare Educational Seminar
    • Social Security Educational Seminar
    • Property & Casualty >
      • Auto Dealers Insurance
      • Business Liability Insurance
      • Commercial Auto Insurance
      • Commercial Property Insurance
      • Landlord Liability Insurance
      • Restaurant Insurance
      • Workers Compensation Insurance
    • Group Health Insurance
    • Group Life Insurance
    • Executive Plans
    • E&O Insurance
  • Contact Us
    • Schedule Appointment
    • Location & Contact Information
    • Careers
  • Home
  • About Us
    • Meet our Team
    • Client Testimonials
    • Refer a Friend
    • Insurance Carriers
    • Agency Photo Gallery
    • Accessibility Statement​
    • Blog
    • News
  • Service
    • Report a Claim
    • Make a Payment
    • Policy Review
    • Update Contact Info
    • Life Insurance Application
    • Policy Changes
    • Proof of Insurance
    • Contact My Carrier
    • Online Documents
    • Request a Free Consultation
  • Individual
    • Life Insurance >
      • Term Life Insurance
      • Whole Life Insurance
      • Final Expense Insurance
      • Individual Life Insurance
    • Medicare Supplemental
    • Financial Planning
    • 529 Plan Alternatives
    • Social Security
    • Disability Income Insurance
    • Annuities
    • Health Insurance
    • Property & Casualty >
      • Auto Insurance
      • Boating Insurance
      • Home Insurance
      • Motorcycle Insurance
      • Renters Insurance
      • Umbrella Insurance
      • RV Insurance
    • Long Term Care Insurance
  • Business
    • Life Insurance Options for Businesses
    • Disability Insurance Options for Businesses
    • Group Benefits
    • Medicare Educational Seminar
    • Social Security Educational Seminar
    • Property & Casualty >
      • Auto Dealers Insurance
      • Business Liability Insurance
      • Commercial Auto Insurance
      • Commercial Property Insurance
      • Landlord Liability Insurance
      • Restaurant Insurance
      • Workers Compensation Insurance
    • Group Health Insurance
    • Group Life Insurance
    • Executive Plans
    • E&O Insurance
  • Contact Us
    • Schedule Appointment
    • Location & Contact Information
    • Careers

our Blog

How to Choose a Permanent Life Insurance Policy for Your Child

1/3/2021

0 Comments

 
Picture
Congratulations! You’ve made the decision to buy life insurance for your child. This is a thoughtful, practical gift, though your child probably won’t realize it today! But one day in the future, they will have tax-free money to use for college, a new home or a new business. 

Shopping for life insurance in NJ is pretty easy because most children are healthy and don’t require a medical exam. It’s important to note, however, that coverage is usually limited to a maximum percentage of the parents’ coverage, and siblings must have equivalent amounts. 

With that out of the way, let’s get down to business. Here are the steps to follow when choosing a life insurance policy for your child. 

First, the Benefits. 

Most parents start by comparing a 529 plan to a whole life insurance policy. Both have their benefits, but there are a number of reasons why we feel the upper hand goes to life insurance: 

  • Permanent life insurance policies include a death benefit and a savings account. 529 plans do not. They are simply a savings tool for college-related expenses.  
 
  • Your child can borrow against their savings account to pay for things like college, a new home or a wedding. The money in your child’s 529 plan can only be used for college. 
 
  • 529 plans count as an asset when you go to apply for financial aid. This can lower the amount of help you get. Life insurance policies are not considered an asset, allowing you to get the full amount of aid.

Steps to Selecting Whole Life Insurance for Your Child 

  • Contact a financial advisor. Because there are so many different policies out there, it helps to speak with a financial advisor in NJ who can answer your questions and compare the differences between a 529 plan and whole life insurance. 
 
  • Fill out an application. Your financial advisor can run several quotes for you. All you need to do is fill out an application for your child. It’s simple - don’t worry! Kids are usually healthy and don’t require a life insurance medical exam. 
 
  • Look over your quotes. With your financial planner in New Jersey, look over your quotes. Insurance policies vary slightly. Fortunately, no matter which policy you choose, your interest rates are locked in. 
 
  • Take over a policy. Once you decide on a policy, you’ll be the owner of it until your child is an adult. You’ll have options to pay off the policy or stretch payments out across many years. When your child is an adult, they’ll become the owner and can take over the payments. 

Ready to Find a Life Insurance Policy? Contact Us Today.

Leonard Financial Solutions offers whole life insurance in NJ from a number of different carriers. Contact us today and we’ll be happy to go over your options and the policies that best fit your needs. 
​
0 Comments



Leave a Reply.

    Contact Us

    Categories

    All
    College Planning
    Disability Income Insurance
    FAQ's
    Final Expense
    Financial
    Insurance
    Life Insurance
    Local
    Medicare Coverage
    Medigap
    Retirement Planning
    Safety
    Taxes

    Archives

    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    April 2019
    June 2018
    April 2018
    January 2018
    December 2017

    RSS Feed

Licensed in all 50 states

​Contact Us

Leonard Financial Solutions
49 Revere Avenue
Moorestown NJ 08057​
856-444-LIFE (5433)
info@leonardfs.com

​Connect With Us

​Share This Page

​Location

Picture
Picture

Proud Member Of

Picture
Picture