Protecting your child’s insurability
Take a look at a list of hereditary deseases. A good health-related web site will provide one. The list is huge – running from breast cancer, to Diabetes, to kidney disease, and more.
For sure, modern medicine has come up with ways to treat many of them and prolong life. Unfortunately in most cases, mortality cannot match people who do not have the disease. People with these conditions tragically often die sooner than people who don’t.
Life insurance companies know this. They have large actuarial databases with evidence proving it. That is why they charge more premium for people with these diseases. Or deny them coverage altogether, if the condition is severe enough.
People who have these diseases can face an uphill battle getting coverage. They need to protect their family and business, so they have to get a policy. Like it or not, they could have to pay big money for it. But you do what you have to do.
Since they are parents, they naturally want to help their children avoid the same hassles they went through to get life insurance. If their condition is hereditary, then very often they will buy policies on their children. This way, when the kids reach adulthood, they will already be insured. They won’t have to pay anything – let alone extra –
for the coverage needed by their family and business. They won’t risk getting declined, and going without coverage at all.
The parents are insuring their kids when they are most insurable – young and healthy. Their insurability cannot be taken for granted, especially with an hereditary disease looming on the horizon.
Hopefully, the kids never get sick, but it’s a smart financial move to protect their insurability nonetheless.