Should I buy life insurance for my children?

  • Aug-27-2013
  • Richard Reich

You've no doubt seen commercials for child life insurance policies and may be wondering whether or not it is useful or appropriate to purchase one. We understand that mortality is a delicate issue, made even more sensitive when we bring our children into the discussion. Buying a child life insurance policy may be a wise financial decision, but you should base your choice on your family's needs.

Purpose

If you are considering a child life insurance policy, you should first ask yourself what you think the purpose of life insurance is. Is it to replace a wage-earner's income? To pay funeral expenses? While it is unlikely that your child is the primary wage earner in your household, a life insurance policy may help to pay for the final expenses as a result of a tragic medical event. In addition, you may also want to consider adding a child protection rider onto your own life insurance policy. Coverage can be purchased in units usually at a nominal price.

A select number of child life insurance policies double as college savings plans that can be cashed out for that purpose when the policyholder reaches a certain age. If you simply want a college fund for your child, you may want to consider a 529 savings account as an alternative, as they sometimes yield better results.

Future insurability issue

One important reason why it may be a good idea to purchase life insurance for children is if there is a chance that they will not qualify for a policy as adults. If you have a family history of illnesses like hypertension or diabetes, it may be difficult for your child to find an affordable life insurance policy as he or she gets older. 

Before considering purchasing a life insurance policy for your children, you should make sure that you have enough individual coverage first. For fast life insurance quotes, use our quote engine and find out which life insurance policies best fit your needs.

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