The Life Insurance for Children Debate

I get a good amount of disagreement from other insurance agents about purchasing life insurance for children. Yes, for some people, the life insurance they bought for their child did pay off later. Obviously though, children do not have dependents that need financial care once they are gone. Since life insurance is designed to care for loved ones that depend on you once you are gone, it does not make sense to purchase a life insurance policy for a child.

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.