Is it worth buying life insurance for my child?

Asked by Leah Gardner

5 Answers

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Answered by Larry Gilmore, Insurance Agent in Marysville, WA
I can only explain this as to why I bought life insurance for my kids years ago. First I bought them whole life with guaranteed increase options for the future. GIO is a rider (might have different names w/different carriers) that is like a stock option. It guarantees your child can purchase amounts of insurance without medical or lab requirements. So if your child were to develop a childhood illness like diabetes, they would be guaranteed the ability to purchase coverage throughout their life, depending on the rider. In my case, they could use the rider 9 times depending on age or life events (marriage, kids), essentially I was taking the insurance company's right to say NO away.

Second reason, what if one of my kids died? Would I go back to work on Monday? Would I have to tell my wife no for a certain headstone because it cost too much? Would I hope that people set out jars at stores to help with the funeral costs? IF one of my kids actually died, would I be able to do what I needed to do to grieve and take care of everything?

Third reason, A whole life is a start of a great financial foundation as the price is locked in and the policy grows safely over time in both cash values and death benefits. It's a great bank as we used some of the cash values to pay for a truck for my daughter to haul her horse around. Didn't have to ask or wait for somebody to decide if the need was worthy. She paid the money back into the policy as she wants to use it again down the road for a down on a house.

So for me, yes it was worth it to buy life insurance for my kids. I took care of the fears of raising kids (death, disability, illness) and set the cornerstone for their futures, so 25 years later or so I still feel it was great use of the money as they made it through childhood without dying or getting really sick and now the next phase is downs for a house. cheers. | 05.19.16 @ 20:59
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$commenter.renderDisplayableName() — {comment} | 12.08.16 @ 02:31
Answered by Lynne Crow, Insurance Agent in Paramus, NJ
Yes, but only permanent insurance and only after you and your spouse ( if you have one) have protected your human life value to the maximum. The reason I believe it is a good idea is that you a buying an adult's policy for a child's price; you don't know if your child will qualify at a standard rate when he/she is an adult; there are a couple of excellent riders that can be added ( waiver of premium for both parent and child, guaranteed insurability option) ; growth of both death benefit and cash value. | 05.24.16 @ 19:36
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$commenter.renderDisplayableName() — {comment} | 12.08.16 @ 02:31
Answered by Caleb Brown, Financial Advisor in Grand Rapids, MI
Do you financially rely on your child for income? No. But here is where the benefit arises. If such a terrible thing as a child passing away were to happen, would you want to go back to work right away? A life insurance policy could essentially buy to time to grieve. Imagine the stress and sadness you'd already be feeling, it would be nice to be able to take some time away. | 05.24.16 @ 19:45
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$commenter.renderDisplayableName() — {comment} | 12.08.16 @ 02:31
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Answered by Marc
It's a great way for you to provide insurance for your children down the road that is locked in and can't be taken away from them. And then with the addition of some inexpensive riders like the Guaranteed Insurability Option and Premium Waiver (among a few others) you can really make sure that they have great coverage when they are older. I have one on my son 3 1/2 yrs and my daughter 5 weeks old because I don't know if they will develop something in the future that will prevent them from qualifying later. I also have them set up on a 20 year whole life so that when they are 21, it's paid in full and the only thing that they would ever have to pay for would be increases along the way if they choose to add those on. They never have to pay a dime into it. The cash value can be used for a car, down payment on a home, or college education. It can be used to travel to Europe for some experimental treatment that your health insurance won't pay for. So many uses that just make sense. | 05.24.16 @ 20:05
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$commenter.renderDisplayableName() — {comment} | 12.08.16 @ 02:31
Answered by Brian Snow, Insurance Agent in Huntington, IN
I bought life insurance on all my children and grandchildren. $50,000 UL on each.
Why? No one can foresee the future. They could have health issues in the future that prevent them from buying insurance. We can only buy insurance while we are healthy. Plus it is very cheap to insure a child.
The biggest objection I get is that no parent wishes to get rich off a child's death. Use it to help the other kids with college. Or use the cash value if needed for the insured child.
I also over funded the policies by a couple of dollar per month in premium. This grows the cash value faster and will increase the death benefit in the future. $50,000 today will be a drop in the bucket when they are 65-70 yrs old and ready to retire.
If in the future they don't need the policy, they can cash it in and use the cash value as they need like paying off the mortgage early or putting their own kids through school.
It is a good idea to do it... | 05.24.16 @ 21:02
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$commenter.renderDisplayableName() — {comment} | 12.08.16 @ 02:31
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