Parents, you’ve got questions, we’ve got answers.

Or just as likely, we’ve got questions and you’ve got answers.

Challenge: Open Discussion

How to Insure a Diabetic Child

2
Vote up!
Share on Facebook Share on Twitter Email this article

Most parents desire their children to possess a firm financial future. The world is an uncertain place, and so many more mothers and fathers are considering buying life insurance policies for their own persons in case their children are left bereft of one or more parents while they are still young. Less often, mom and dad think very much about the impact on their own lives if they lost a child.

The largest majority of life insurance companies do not have policies that will approve a diabetic child. That means that for a child under the age of eighteen who is afflicted with diabetes, the life insurance choices are extremely limited in nature. Buts if parents will work with an insurance agent who has a specialty in getting diabetes cases approved, the odds will increase.

Here are some suggestions for parents to follow to minimize the possibility that their diabetic child cannot be insured:

Think about a transfer

A majority of life insurance contracts bought for children of a minor age can be transferred to that same child when they attain their majority. In other words, the child has the choice to continue the coverage no matter what changes occur in their health as they get older. So the sooner mom and dad buy a policy, the more inexpensive the premium will stay and the fewer health concerns will be diagnosed that might affect approval and the premium cost.

There might be cash available

Besides the death benefit, a minor’s policy does posses the ability to accrue a cash value over a period of time. This means that if they want to go to college, or meet some unexpected financial challenge, they should be able to turn their polity into cash funds to meet the contingency -- whatever it might be. According to Ty Stewart of SimpleLifeInsure, “Parents should make certain that any policy they purchase for their children contains a provision for this cash-out.”

The option of whole life

A whole life insurance policy offers complete coverage for as long as the policyholder lives, provided he or she pays the premiums on time. Whole life is relatively easy to obtain, even when there are health challenges such as diabetes. The trade-off is that parents will probably have to pay a higher average premium for a diabetic child than they would otherwise.

The policies build a cash value that transfers to the child into adulthood. Premiums never go up after the initial approval. No medical exam is required for policies under fifty-thousand dollars, and no matter what happens to the child’s health after the ink is dry the policy cannot be canceled and premiums cannot be increased.

The option of term life

If all other options fail, term life is a possibility for the parents of children with critically ill children. Almost any medical condition is accepted. The thing to remember is that the premiums will be high and that no cash value accrues to the policy at any time. Plus, it is not an open-ended contract. Term life can only be purchased for a stated period of time, anywhere from one year to ten -- after that, it automatically is terminated. And, unfortunately, in the case of diabetes, the coverage usually cannot be purchased for anyone under the age of sixteen.

Consider guaranteed universal life

After the age of sixteen, universal life is an option for diabetic children. To keep the policy premiums reasonable, there is no cash value to the policy -- only the death benefit. Of the three different types of insurance mentioned here, this is probably the least expensive and easiest to obtain if your child has a serious health condition.

This post comes from the TODAY Parenting Team community, where all members are welcome to post and discuss parenting solutions. Learn more and join us! Because we're all in this together.