Is it important to have a LIFE INSURANCE esp if you have a child? why? or its better to invest the money??

YES it's important to have life insurance if you have a child! As well as a will! If something happens to you someone will have to raise your child. You wouldn't want to put the added stress of not having enough money to raise your child on someone you care about. It's not very expensive not to mention - it will cover the costs of a funeral (which is VERY expensive these days) My sister died a few years back. She had no insurance so, not only did my parents end up having to raise her child out of their own "pocket" - they had to come up with $10k for her funeral! Please plan ahead :)

Hell YES! You can buy term life (doesn't build cash value) for CHEAP... Like $15-20 per month for $500k of coverage.

Do it now.

Insurance shares risk. The purpose of life insurance is to replace lost income your survivors will need if you die. It is not primarily an investment for YOUR future. I

I think that it is important to have life insurance, so that if anything does happen, they have something to fall back on.

You need life insurance if you have a child. In case anything happens, your child will have money to survive by himself. You can still invest. You'll just need to invest with whatever money you have left after paying your life insurance.

It's important to have life insurance if you have children, especially if you need money to provide for their financial security and support after you have passed away.

Term life insurance is the most common type of life insurance purchased by families with children, because it may provide the maximum amount of life insurance protection at the lowest cost.

You can invest the difference of what it would cost for permanent life insurance from what you are paying for the term life insurance. That way, you have term life insurance protection, and money going into an investment for your children.

Here's how term life insurance works:

Term life insurance lasts for a specific number of years, usually 10, 15, 20 or 30 years. The most common terms are 10 years or 20 years.

Term life insurance policies pay the beneficiary the face amount of the life insurance policy if the insured person dies during the term of the policy. For example, a 15-year term life policy with a face amount of $250,000 would pay $250,000 to the beneficiary if the insured died any time during those 15 years.

Usually, term life insurance costs less than permanent life insurance.

At the end of the policy term, the insured is no longer insured, and a death benefit is no longer paid. Some term life insurance policies are renewable, or can be converted to permanent life insurance.

Term Life Insurance Has Three Standard Features:

Level
Usually, the annual premium for the policy paid by the insured stays the same each year. The face amount of the policy also stays the same. Level term life insurance policies can usually last up to 30 years.

Convertible
Before the end of the term for the policy, the life insurance policy owner may be able to convert the term life insurance into a permanent life insurance policy. The owner usually has a specific number of years during the term life insurance policy to convert the policy. The premiums usually increase for the permanent life insurance.

Renewable
Term life insurance policies that are renewable offer the owner the option of renewing the life insurance policy at the end of the policy term, up to a specific age limit (usually age 65 or 70).

For example, a 15 year policy may be renewed for another 15 years. If the policy is renewed, a medical exam may be required. The term life insurance premium will usually increase when the policy is renewed.

Make sure to compare several term lfie insurance quotes before you choose a plan, because rates can vary by up to 50% or more between insurers.

You can get your free term life insurance quotes at https://www.efinancial.com/smartquoteefc.aspx?source=389-707 You will be asked to fill out one form which takes about a minute, then you will recieve the 12 lowest quotes for term life insurance instantly, from more than 77 top-rated insurance companies.

I hope that helps! Best of luck to you.

Pretzel is right... you should have TERM Life Insurance so junior will get a lump sum if you are hit bus. Don't let an insurance saleslizard try to talk you into anything else...anything with a "cash value" is guaranteed to be worth less later than if you had invested the money yourself. It's not supposed to be an "investment", it's insurance!

I disagree. What are the chances that you are going to die or be seriously hurt? To me that is $20 wasted every month that hopefully you will never need to use. Yes, I know that it isn't that much but if everything is fine (chances are they will be fine), what is the return you get on that $20 a month? ZERO!

I could buy flood insurance, Alien invasion insurance, a gun for my house to protect my family from robberies, cameras and laser systems to protect my car, or end of the world insurance to be safe but even at $3 a month, it is a waste to me. If you are not healthy or have a dangerous job then sure, go for it. It is your money to decide.

Go ahead. Everyone give me a thumbs down for the contrarian view here.

Generally I would have to say yes, but if the child is very young and would become a ward of the state, I'm not sure what would get done w/the money. Otherwise, it should be a good nest egg for the child or at least a courtesy to the new guardian(s).

Yes, it is very important to have life insurance and the best and cheapest is term life insurance, ESPECIALLY if you have a child. Those $20-$40 a month is not a waste, they will be giving you some peace of mind. After all life is a risk, all you will be doing is lowering that risk for your love one. For example we all pay for car insurance because is the law wheather we get in an accident or not we are still paying every mo. Now is it a bunch of metal worth more than our kids?? Life Ins. & Investment are two very separate things, 1st take care of your L ins then if you still have $ left think about investment for ex. w/ mutual funds you can start low then gradually invest more.

The main purpose of life insurance is protection while investments is earnings. A lot of insurance policies now offer some form of investment build into their policies but still it all depends on how attractive it is compared to your investment vehicles. So some number crunching may be needed. Anyway, life insurance allows your dependent to have access to a substantial amount of money anytime that something happens to you even if you just paid the first premium. If you invest the money, it will take a specific period of time before your child will acquire such amount. Normally investing would be advisable only if you have a money NOW that is material enough to earn a large sum in the near future. In any case, if you have $1M earning $50k a year, it would still be wise to invest some in insurance since you have enough money anyway. Let me give an example to prove a point.. Let us say John has $1M invested at a rate of 5% p.a., and Maria has a $10M policy with a premium of $12K/year. If something happens to them a year from now, John's child will get $1.05M from the investment while Maria's child will get $10M from the insurance policy. The only drawback in insurance policies is that you as the insured don't enjoy the benefits. So if your main purpose is for the people you will leave behind, then insurance policies can work for you. Now imagine if John only invested $988K and bought a $10M policy at the same time for $12k. His child will get $1.037M plus $10M for a total of $11M. So, it depend,s but you can still have the best of both worlds.

Hi there,

Would you ever want to see your child suffering while you are not there to look after him/her? We all have to plan for our children's future. You want to save your premium from insurance & invest in to shares or properties but these investments are not good enough if something happens soon.

Not necessarily. Life insurance should be evaluated like any other insurance. It's purpose is to meet a need if an unfortunate financial crises occurs. Before a person buys life insurance they should do a needs analysis. Then buy the type and amount that is appropriate for their situation.

A child is an extremely important consideration. But to base the decision on that fact alone would be a mistake. And most likely leave you improperly insured. When I sold life insurance I always began by performing a needs analysis. Everyone was either under insured or over insured. Because they had just picked a number, or let a previous agent pick one.

Current value of investments may be used to reduce the need for insurance. But be careful about using potential gains to replace it.

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