One of the most debated life insurance needs is on the life of a child. Many will argue that children do not incur debt nor do they generate income, so there is no need to buy life insurance on a child.
As a parent I can think of nothing worse than the loss of a child. Feeling pressure to return to work the day following services because of financial needs would only compound the loss. Parents need time to grieve the loss of a child and do so with dignity.
I would recommend at least enough to pay final expenses if something happens. somewhere between $10,000 and $25000. Insurance on a child is very inexpensive and it will take a big burden off of you if you have the tragedy of losing a child. If the child lives then you can get the child off to a good base policy. It has been my experience that young people think that they are never going to die. Life insurance is the farthest thing from their minds. By keeping a policy on them until they are old enough and responsible enough to handle their own insurance you are doing a loving thing for your child and protecting yourself from any financial burden if something happens.
When you have kids, you want to be sure that you have enough life insurance on yourself to at least raise your children to the age of adults. It would not be unreasonable to purchase $100,000 of coverage for each child's education. It would also be a good idea to get enough life insurance to replace your income for the number of years that they will be minors. Since this is a temporary need, you can use term insurance, which is much lower priced than permanent insurance.
President, The Firm of Steven H. Kobrin, LUTCF, 6-05 Saddle River Rd #103, Fair Lawn, NJ 07410
Here are two ways of looking at this:
1. Life insurance on you as the parent.
Take out enough so that your surviving spouse and children will be able to live comfortably. No debts, not worries about paying bills, and no concern about running out of money. Choose a face amount that could be invested conservatively and they could live off the interest.
2. Life insurance on your kids.
Give them a nice-sized policy that will grow in leaps and bounds. Over time, the cash value and survivor benefit could increase dramatically. And, it is a big plus to enter adulthood already insured. That will make it much easier to get a mortgage or business loan.
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As a parent I can think of nothing worse than the loss of a child. Feeling pressure to return to work the day following services because of financial needs would only compound the loss. Parents need time to grieve the loss of a child and do so with dignity.
1. Life insurance on you as the parent.
Take out enough so that your surviving spouse and children will be able to live comfortably. No debts, not worries about paying bills, and no concern about running out of money. Choose a face amount that could be invested conservatively and they could live off the interest.
2. Life insurance on your kids.
Give them a nice-sized policy that will grow in leaps and bounds. Over time, the cash value and survivor benefit could increase dramatically. And, it is a big plus to enter adulthood already insured. That will make it much easier to get a mortgage or business loan.
They will thank you for it!