Is it worth buying life insurance for my child?
Answers | 5
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.
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...