Four forward-thinking reasons to insure your children

Forward-thinking reasons to insure children

The time of year is upon us where the weather starts to feel a little cooler, crops are starting to turn and the kids are going back to school. Sounds like pretty normal things — but this year is anything but “normal”. One good outcome from the current state of affairs is that a record amount of folks are researching and considering life insurance for their children, grandchildren, or for themselves.

We often get the question from parents and grandparents, “Why should we have life insurance on our children or grandchildren?” Probably most important is future insurability. Life Insurance can provide the ability to “lock in” the child’s current health status for as long as they keep the policy in force. Once a policy is issued, the rating that the child receives stays with them regardless of any negative future health changes. Catholic United even offers a special rider on whole and universal life policies that allows that child to purchase additional insurance at specified ages in the future without having to prove they are insurable, even with a virus.

…Life Insurance can provide the ability to “lock in” the child’s current health status… Once a policy is issued, the rating that the child receives stays with them regardless of any negative future health changes.

Another financial reason for insurance on children is premiums are based on the child’s current age and health rating. With most permanent policies that premium is locked in for the life of that child. This way we can guarantee a low premium on a child’s policy for their future and build on that policy as their life changes. Other policies have a one-time premium that provides future insurability.

Increasing cash value is another valuable benefit of permanent insurance on a child. This cash value can be used by the child and/or parent to help with college costs. In applying for financial aid for college, life insurance is an asset that is not reported as an asset of the parent or the child. This means the student can actually use the values in their life insurance towards college without a negative effect on their loans, scholarships, or financial aid benefits. As the child becomes an adult, cash values can also be used for future needs such as a home purchase.

You might also be interested in reading this: How to become eligible for a Catholic United scholarship

Ownership of a Catholic United Financial life insurance policy or annuity qualifies the child as a member of Catholic United. One huge benefit of membership is our scholarship programs. To qualify for this program the student must be a member of Catholic United for two years. Typically, after child graduates from high school, she or he can apply for a Catholic United Scholarship. The online application is available by logging into, any time between March 1 to April 30.

In 2021, Catholic United expanded that benefit by allowing families to apply for up to $500 in scholarship funds for a child member attending a private, Catholic school — preK to 12th grade — in our five-state area. This is a new, limited time benefit that can provide much needed tuition assistance to young families. Making a child eligible to apply for these scholarship programs is now easier than ever, with our new online application for single premium youth term life insurance.  

If you are currently a parent or grandparent, consider the wonderful benefits of Catholic United life insurance for your children or grandchildren. Also, don’t forget to make sure — if something unforeseen happens while you have young children or grandchildren — you have an estate plan in place to make sure their needs are covered.

In these times of uncertainty, the “normal” for Catholic United Financial is our over 140-plus years of continued commitment to education and providing protection to our youth and young adults.

As always, if you would like more information on youth term insurance, our scholarship programs or other available products, please contact your local Catholic United Sales Representative for assistance.

May God bless you and your families…

Ahead and Ahead Safely