PolicyAdvisor.com has added children’s life insurance to the offerings on its platform, the online broker said in a release on Thursday.
The company offers online quotes and comparisons for children’s whole life insurance in three coverage amounts — $50,000, $100,000 and $250,000. For other coverage amounts, PolicyAdvisor’s licensed advisors can customize quotes, the release said.
Whole life insurance accrues a cash value that can be used for a major expense for the child.
“Children’s insurance encompasses much more than the initial coverage benefit,” said Jiten Puri, PolicyAdvisor.com CEO, in the release.
“It allows a parent or grandparent to give the gift of guaranteed future insurability as also access to a financial asset they can put towards education costs, a first car, travel or downpayment on a first home.”
A child’s insurance policy could also act as an alternative to an RESP, the release said.
“RESPs have contribution limits and strict use terms,” it said. “The cash value from children’s life insurance can, however, be used in any chosen way and has no limit on the cash value accumulation.”
RESPs are attractive because contributions are matched by the government through Canada Education Savings Grants (a maximum of $500 per year, plus low-income families may receive an additional amount as well as the Canada Learning Bond).
PolicyAdvisor is the only broker in Canada to offer online quotes, comparisons and digital purchases of whole life insurance policies for children, the release said.
Products from 20 insurers are available on the platform.