Doing the Right Thing
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It depends on the living conditions and what kind of activities your child does. If you live in a high crime neighborhood and murder rate is high, then it may be a good idea to buy a small life insurance policy on the child. Other than that, most people usually don't buy life insurance on their children. |
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Wendy S
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I do not think purchasing life insurance for a child is a bad thing. I sold many policies on children as an agent for 15+ years.
To me it gives them a start on a well rounded insurance plan. I've always thought that the best insurance plan is to have a small whole life policy that you keep forever, then supplement with term insurance when you are raising your family, paying off your home and putting your kids through school. Later, when term becomes too expensive as you age, you can drop that and still have the cheap whole life policy that your parents got for you when you were born.
Most importantly, if G-d forbid they became uninsurable for some reason, they already have coverage. My son is asthmatic. I've sold policies on children who later became diabetic, asthmatic, had lieukemia...who would pay exorbitant rates later in life...
I bought a terrific policy for my son. It's a Whole Life policy that's completely paid for in 10 years. This is affordable because I bought it when he was very young. I also added something called a Guaranteed Insurability Option. This allows him to purchase additional insurance at STANDARD RATES at 12 different ages in his life - NO MATTER HIS HEALTH AT THE TIME.
Is life insurance on children necessary? No. I think it has value, though. |
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Jen
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well, in theory, no, you don't need it. you are not financially dependent on any income from them. but think about these two scenarios, A) god forbid, tomorrow, the child gets hit and killed by a car. do you have enough to cover any last medical expenses and give your child the burial you want her to have? also B) you need to take time off of work, for funeral arrangements, the funeral, and some to grieve. are you in a financial position to take that time off?
if you are not in a financial position to do either, a child life insurance policy is pretty inexpensive, and a godsend when you need it most. |
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emaaaazing!
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YES it is very necessary. When you insure them young, it is cheap and you are insuring their insurability as premiums get more expensive as you age and you never know what type of ailments they may have in the future that may make them a "decline" for life insurance.
Sometimes parents don't want to do this just for the simple fact that they don't want to think about their child dying which is totally understandable. So I present it in i different manner....I recommend a whole life product that grows cash value(pick a strong company) and has APB on it which means that the parents can continue to purchase more life insurance for their child WITHOUT any evidence of insurability ( such as illness, injury, disease).
My three year old is not only covered by life insurance, but he also has a nice little savings inside the policy..win win. |
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westtexasboy
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well, no, not really. but, a life insurance policy for a child is very, very cheap. and, if the worst does occur, such insurance will cover the costs associated with death and burial.
hope it is never needed! |
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Life Insurance Expert
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I sell a tremendous amount of insurance, and have never sold it on children. In my opinion, it is useless, unless you are in the financial position where a funeral would paralize your family. The clients I have are wealth, and therefore it is simply not applicable. Point is, losing a child is mathematically unlikely, so if you can afford a funeral, don't buy the insurance. |
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Beau R
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It isn't really necessary, but if the child does die, then it is supposed to be enough to cover burial expenses. It never really is enough, but it does help. Another selling point is that when the child reaches his majority, he can either continue with the policy, or cash it in for the value. It really comes down to what can the young parent(s) afford. |
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mbrcatz
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No. My kids are NOT insured. |
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Peter M
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A disability insurance is very important tho , they could spend many years without being able to support them selves if they were ever in an accident, long after you are gone |
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