Way to Save #55: Avoid Children's Life Insurance | Money Talks News

by Life or Debt

Based on your very narrow definition of the purpose of life insurance I would tend to agree with you, however….Life Insurance is a magical financial product whose benefits extend well beyond income replacement. Why buy a modest amt of life insurance on your child? First, the cost of a life policy on a child is minimal. We’re talking McDonald’s money here. Second and most importantly is what life insurance will do for this family. Divorce rates in the US hover around 50%, after the death of a child even higher. LI provides the $ for time off & counseling, in other words….time for this family to heal. And yes, divorce is a financial calamity.

Your article assumes that the same child will qualify for life insurance once he/she becomes an adult. A responsible parent insures that a child has as much access to financial tools as possible. What if your child is diagnosed with diabetes? Good luck getting life insurance that’s affordable then. This tip is a great reason why you don’t make decisions based primarily off of money.

I agree with you Brandon….I have recently been diagnosed with a rare form of heart disease which is hereditary in nature. This means my children have a 50% chance of getting the same disease. If I did not get life insurance for my children while they are insurable then I am far from a responsible parent for not looking out for their future. I can guarentee that they will not be insurable if they are ever diagnosed. Purchasing a policy now with the option to increase at a later age without having to prove insurability is the smartest thing I can do for my children.

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