At 36 weeks pregnant is when many women start to weigh the pros and cons of obtaining a newborn life insurance policy. The very first question that one may ask is: Can you obtain a life insurance policy for a new born? Yes, you can. Not only can you acquire it, but it also comes at the cheapest rates that are available for anyone. If we were asked whether obtaining child life insurance is a good idea, our short answer would be - Yes. In this article, we will explain why we believe so.

If you purchase whole life insurance for your baby, the cash value that will accumulate by the age of 20 or 30 will make for a small fortune. At the same time, it will not cost that much for you, because the premiums will never increase. Whatever you pay in 2010, you will pay the same in 2020, 2030, and so on. When your child finally takes over the payments on the premiums, they will also have to pay what the rate was at the time of their birth. This allows locking in at least one payment of the ever increasing cost of living.

The insurance allows you to make early arrangements for your child’s college tuition. When they become a young adult, the accumulated cash value can be used for any of their purposes, with one of the most popular being college tuition.

All of the above comes with regular life insurance features, which includes a death benefit that is paid in the unlikely event of a child’s death. The thought of acquiring life insurance for children may seem unnatural, which is normal. The way it works in 99% of the cases is that the child out lives their parents. It’s hard to think about anything like that in regard to your child, and nobody should. Most parents think about their children and not of themselves when they buy life insurance for their newborn, infant, or toddler. A child’s life insurance may become a small burden financially for the parents, but it’s all about commitment and responsibility.

There are thousands of people who are delighted that their parents bought such insurance for them at birth, especially in later life (fifties or so). Many wouldn’t be able to afford insurance in their fifties, due to health issues or specific life choices. Since their parents bought the policy when they were kids, it makes it cheap to add to it – a person qualifies for cheap premiums from the same company. No matter what illness or lifestyle choices (skydiver, scuba diver, ride a motorcycle, or are a pilot), they will qualify for guaranteed standard low rates.

Newborn insurance costs several dollars a month for each $10,000 of coverage. The coverage can be as little as $5,000 or as much as $50,000; it’s all up to an individual family.

All in all, we believe that early life insurance is a smart idea. Its additional advantage is the “mandatory” aspect. When it comes to regular savings, nobody seems to be able to stick to it; the “mandatory” savings, on the other hand, will ensure that your child gets many helpful benefits later in their life.