Conventional wisdom dictates that a person doesn’t need life insurance if no one else depends on their income. While mostly true, there are many reasons why you should have small life insurance policies for your children and grandchildren.

Insurability and Low Premiums

A young child will likely have lower premiums and greater insurability. Buying a child’s policy not only locks in lower premiums but can also guarantee insurability later in life. For example, a Member can obtain $10,000 to $50,000 AAFMAA Generations Plus life insurance policies for their children and grandchildren and lock in a low rate before these children turn 14. In addition, their coverage amount doubles automatically at age 18 with no premium increase. The policy also guarantees the ability to purchase additional insurance in the future with no medical underwriting or physical exams. Your child can ultimately purchase AAFMAA insurance totaling 10 times the initial policy value. So that inexpensive $10,000 policy gives them the power to purchase up to $100,000 of insurance throughout their life, regardless of future health conditions.

Cash Value Growth

A Value-Added Whole Life insurance policy provides attractive cash value growth. Access this cash value at any time using a policy loan. Or, if you cancel the policy, you get a return of all premiums paid, or the cash value – whichever is greater. You can relax and breathe easy knowing you provided permanent insurance protection, tax-deferred cash value growth, and no premiums for the rest of your child’s or grandchild’s life.

Funeral and Burial Expenses

From a practical perspective, in addition to the emotional devastation, parents also face significant expenses in the event of a child’s death. According to the Natural Funeral Directors Association, the median cost of a funeral with burial exceeds $7,000. However, depending on locality and circumstances, the costs could be much higher. Purchasing insurance for children alleviates the significant financial burden for a family coping with a tragic loss.

Ability to Access AAFMAA

An AAFMAA policy also entitles the child to take advantage of AAFMAA’s other products and services, even much later in life. AAFMAA serves only active military, Veterans*, and their families. However, if a Member purchases a policy for a child or grandchild, that person becomes eligible for all AAFMAA products and services as long as that policy remains force. This includes access to not only best-in-class insurance, but also mortgages, financial planning, wealth management, and trust services. Even your adult children and grandchildren can lock in access to AAFMAA by purchasing an inexpensive policy. A $50,000 Level Term I policy provides a fixed premium under $10 for most and death benefit up to age 50 for non-nicotine users. When that adult child has their own family and a greater need for insurance, they can purchase additional AAFMAA coverage, even if they are not in the military.

Buying a life insurance policy for your child or grandchild provides important financial security to your family for years to come. Call AAFMAA’s membership team at 877-398-2263 or get a quote for your child or grandchild today at aafmaa.com/getaquote.

*Membership in AAFMAA is for military, Veterans, and their families subject to certain terms and conditions.

This article was originally published August 20, 2021.