The Life Insurance for Children Debate
This does not mean that the risk is non-existent. We could of course insure everything since there is a risk of losing everything, but we need to determine if that risk is high enough for our personal situation to insure. By this, I feel buying life insurance for children should not be a routine insurance purchase. On the other hand, life insurance for parents should be a routine insurance purchase since parents do have loved ones depending financially on them (their children).
There are other insurance choices that should not be routine insurance choices. The article Don't Buy Insurance You Don't Need reviews types of insurance policies that should not be purchased routinely. Again, this does not mean that by purchasing these types of insurance you will never use them, you may. The risk is so small though, that your money could be spent more productively on such things as savings or investments.
Comments
One of the main purposes of life insurance is for income replacement. I do agree.
I was once a baby and you were once a kid also. Babies grow up and will eventually have an income that needs to replaced in the event of their death. I think it is a great idea to lock in the “preferred best non-tobacco” AT A YOUNG AGE before they have time to develop bad habits or some sickness. They are young and healthy, and life insurance is cheap.
I know I wish my father took out a policy on me so I would only have to pay $15/ mo for $100k of insurance guaranteed until I turn age 120.
I think it is called “planning”.
I totally disagree with this article!!! I have 3 children all insured with a whole life policy. I did not purchase this insurance incase of their death, but instead to solidify their insurability incase they became uninsurable. My eldest daughter became diabetic at age 12 and is now a huge insurance risk. She has GIB on her policy and I can increase her insurance without a medical to up to 300, 000 – this has guarateed her insurance for life with a cash value to date of 25,000 – perfect for some of her school needs if necessary.
Whole life insurance for children is a terrific option for parents who want to safely lock in a premium for their child, plus the guaranteed cash value build up is very needed in today’s topsy turvey world of investments. College costs increase each year, not decrease.
What if your child dies? The article does not mention that. Who pays for the funeral and the coffin???? The parents. I think having life insurance to at least cover the funeral is necessary. At the kids ages, life insurance would be very inexpensive. Why even say not to get it for your kids. You are not going to be paying much anyways.
The easiest way to approach a insurance company is by contacting them online.
You just need to fill up few details and they will contact you with the best suitable insurance plan as per your requirements.
I used this web page “http://www.gerberlife.com/quote” to contact Gerber for my little princess and I am quit satisfied with their response & quote.
I disagree with the author as well. As an agent, I have seen many children who are uninsurable. They will still lead long, productive lives, get married, but will not even be able to protect their families when the time comes. If they are healthy, they will then have to fit that premium into their budget. Why not leave them a legacy they will have for the rest of their lives with a permanent policy. I prefer a limited-pay permanent policy, like 20 pay life. In 20 years, it’s guaranteed paid-up! I have seen many of these policies outperform traditional investments as well in terms of rate of return. Problem is, very few companies have them- usually fraternal insurance companies. Buy now while they are young, cheap and healthy!
Bobbie,
You look to young to have any children, but if you do…shame on you. Here are some numbers:
1 in 150 kids will develop autism
1 in 3 adults are obese
1 in 3 people will get cancer
Etc.
Where will these folks get life insurance without mortgaging their house for premiums?
My son is autistic and he has had life insurance since birth. If something were to happen to him, how would I pay back all the debt I have incurred to make his life as enjoyable as I can? I would I take time off work to grief and console?
And if he didnt have autism, but was obese, had high bp, high cholesterol, cancer, etc. how would he purchase enough life insurance to protect my grand kids?
And if nothing went askew in anyway, so what if he has an extra $20k at age 30 instead of $50. Isn’t the protection worth it?
If you have an answer, please let me know.