Primarily for burial costs.
I just took out $50,000 for $5, one of each kid (3 of them) which I will give to them when they get older. This is more of a gift than anything else.
Insurance companies will not allow you to get a large policy on a child unless the parent has at least 3-4 times on themselves. That said, you have to explain why as no one depends on the child as well.
President, Lane Independent Agency, Southern California
Excellent and Important Question. Every parent should have life insurance on a child. You can get Whole (Permanent) Life Insurance on a Child for very little money, so larger amounts are possible. No you do not expect a child to die you. It has nothing to do with that. It deals with Guaranteed Insurability! You never know when a child may develop a childhood disease, be in an accident, or develop childhood diabetes. Once that happen, that child might otherwise become uninsurable, meaning they could never get life insurance on themselves. If you gave them Life Insurance as a child, and it was continued, with the guaranteed, locked in very low rate, that child is now able to continue to have life insurance for the balance of their lives. If you also added a rider to add to the coverage, you could even increase the coverage over time, all at guaranteed lowest rates. You need to get together with a reliable Life Insurance Agent who can thoroughly review your entire picture and recommend the best choice of options for you, with a detailed explanation. Give me a call please. Gary Lane, Registered Representative, New York Life, 949 797 2424. Thank you.
With modern medicine comes the ability to diagnose a myriad of diseases, genetic disorders, even the tendency to develop health conditions. While these are very helpful in keeping people alive longer, they are not all that helpful when it comes to getting life insurance. Getting life insurance on your child helps you lock in some good rates for them while their slate is still pretty clean!
Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
In my mind there are two important reasons to consider Life Insurance on your child. First, and this presupposes that you are considering some form of permanent Life Insurance, the cost is lower and the potential for cash value growth is greatest the earlier the policy is purchased. The second reason is to protect the child's "insurability" for the future. Not only will the child have the coverage you bought regardless of what life may through at them, but in many cases, companies offer guarateed purchase riders that enable that young person to buy more coverage later in life regardless of his or her medical history.
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I just took out $50,000 for $5, one of each kid (3 of them) which I will give to them when they get older. This is more of a gift than anything else.
Insurance companies will not allow you to get a large policy on a child unless the parent has at least 3-4 times on themselves. That said, you have to explain why as no one depends on the child as well.