Life Insurance 101: Adopting A Child

​Getting a life insurance policy won't be much different for you if you were adopted or are in the process of adopting a child. Nonetheless, there are a few important considerations you should bear in mind. It is important to learn what needs are required in the process.

Your life insurance coverage may be affected if you've been adopted or are considering adoption. Adoption shouldn't affect your life insurance coverage in most cases, though. If you're honest on your life insurance application, your beneficiaries should still be entitled to the money from your policy.

Life Insurance if You're Adopted
In applying for life insurance, they will question you about your family history, which is only one aspect of the in-depth examination of your health that life insurance companies do. Genetic testing is being performed to see whether you have any predispositions to health problems that might arise in the future while you have a policy in force.

Life Insurance for Your Adopted Child
If you have an adopted child, they are just as eligible for life insurance benefits as your biological child as long as you have legal guardianship.

However, designating a minor as the beneficiary of your life insurance policy is usually a bad decision. A person who isn't a legal adult can't get a death benefit from a life insurance policy. It's better to choose someone you know and trust as your beneficiary. The death benefit from the life insurance may then be distributed in the manner you choose.

Life Insurance in the Process of Adopting a Child
Consider purchasing life insurance to protect your child's well-being if you die before they are old enough to make their own decisions. Depending on the state, you may be required to hold life insurance coverage. Getting insurance as soon as possible is best to get the best prices. 

Until your adoption is finalized, it is advised that you choose a guardian or trust as the beneficiary to avoid payment delays. You may change the beneficiaries of your insurance policy at any moment so that it continues to meet your requirements as your life situation changes.

Conclusion
A child adopted into your family is entitled to the same legal protections and opportunities as a biological child. In most instances, the advantages include the right to an inheritance. Having this knowledge and understanding of how it will help you is essential.

At Arnold, Bruce & Doerfler Insurance, we put our clients first by offering policies that they can afford. If you need any help, we are here to provide it. Call our agency at (503) 222-1951 to learn more about our goods and services. CLICK HERE to get your free quote. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!