YOU ASK:

Should you get life insurance for your child?

WE ANSWER:

First, ask yourself why you want to buy life insurance for your child. Does your child need life insurance?

Purchasing life insurance for children is a hotly contested issue. There are indeed strong arguments that go for and against buying coverage for kids. In the end, the parents need to weigh the arguments presented by both sides. More importantly, the parents should be sure that they themselves are sufficiently covered before they consider buying a policy for their child.

Why you should get life insurance for your child?

The benefits are:

  • Your children will always have coverage. Even when the state of their health in the future is uncertain, a life insurance policy means they are covered no matter what. If your family has a history of obesity, cancer, diabetes, high blood pressure, etc., chances are your child might have them too which could deny him coverage when he purchases a policy later on.

  • Offers peace of mind. In a worst-case scenario, a policy can take care of funeral expenses.

  • Can accumulate cash value. A whole life policy can grow over time, when your children reach 18 they can have the means to fund their college education.

  • Inexpensive policies. Budget-friendly policies are commonly available.

  • Premiums are locked for life. You need not worry about future increases.

Why you should NOT get life insurance for your child?

  • Financial benefit is negligible. You can find other sources to cover for funeral expenses like adding your child under your own policy.

  • Whole life policy as an option can be expensive. There are costs involved with these policies, which usually eat away any potential earnings.

  • There are better ways to prepare for college expenses. Other alternatives have no mortality charge.

  • There is little chance that your child will find difficulty getting insured in the future.

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