Newborn First

Newborn First

Confused By The Different Types Of Newborn Life Insurance Out There?

Whole Life insurance, Limited Payment Whole Life insurance, Term insurance... Confused by the many different type of Newborn Life Insurance? You have come to the right place. In the next few minutes, you will learn what type of Newborn Life Insurance is suitable for your baby.

What is Whole Life Insurance?

A Whole Life Insurance typically provides protection coverage against Death, Total Permanent Disability, and/or Critical Illness and/or Terminal Illness. It covers your newborn for life, until you decides to surrender it. Depending on when you surrender it, there is cash value on the policy when you surrender it. And since it is a whole life insurance, you will probably have to pay the premiums until you decides to surrender it.

Who is suitable for this type of Newborn Life Insurance?

It is for any parents who wants both protection and cash value on the policy for their newborn. And is comfortable paying premiums until when they decide to surrender.

What is a Limited Payment Whole Life Insurance?

It is basically a plan similar as Whole Life Insurance expect for the payment part. As the name suggests, you pay premium for a limited period e.g. 10 years, and your newborn gets covered for life!

Who is suitable for this type of Newborn Life Insurance?

And of course, since you are only paying premiums for a limited period, the premium will definitely be slightly higher than those you paid for the regular Whole life Insurance. But in the long run, it is definitely better, and your newborn, when he/she becomes an adult will thank you for this gift since they no longer have to pay the premiums. That being said, the type of Newborn Life Insurance plan is suitable for parents who can afford the high premiums.

What is a Term Insurance?

Term Insurance is basically a plan that you will buy if you want only protection coverage for your newborn for a period of time (e.g. 30years). This type of insurance has no cash value, meaning that when you surrender the policy, you will receive nothing.

Who is suitable for this type of Newborn Life Insurance?

It is suitable for parents who are a little tight on budget, but still want to get some coverage for their kids. Because since, there is no cash value, term insurance is very affordable.

And there you have it, the different types of Newborn Life Insurance.

So what are you waiting for?

About the Author

I am a Financial Advisor/Insurance Agent by day/night. And wants to help people to achieve financial freedom through education.

http://newbornlifeinsurance.blogspot.com/

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