Since the purpose of life insurance is usually to protect someone from an economic loss that would be caused by the death of the Insured person, this is a good question. Why do kids need life insurance?
In light of the stated purpose, perhaps this need does not exist in your family. If the unspeakable happened and you lost a child, you may have plenty of resources to cover final arrangements, even if there were medical bills. If not, then a life insurance policy for a child, or putting the child(ren) on a child rider on your policy, would be a valid choice.
However, because I specialize in Impaired Risk life insurance (life insurance for those who have health conditions or other risk), I see the biggest advantage of kids having life insurance as ensuring they will be able to get affordable life insurance for the rest of their lives. There is a huge advantage to getting them insured while they are still healthy.
E.g. A child who develops type 1 diabetes will not be able to get a life insurance policy until they are at least 16 years old, and then far above average rates will follow them the rest of their lives. If they got even a term policy before developing diabetes, the policy can later be converted to a permanent policy at the same health rating they got before they were diagnosed. If on a child rider, they can get 5 times the amount of the rider rated Standard when they become adults, no health questions asked.
There is a tendency to not think about life insurance until there is a scare in one's health. Having life insurance as a child just takes care of it, no matter what the future brings.
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In light of the stated purpose, perhaps this need does not exist in your family. If the unspeakable happened and you lost a child, you may have plenty of resources to cover final arrangements, even if there were medical bills. If not, then a life insurance policy for a child, or putting the child(ren) on a child rider on your policy, would be a valid choice.
However, because I specialize in Impaired Risk life insurance (life insurance for those who have health conditions or other risk), I see the biggest advantage of kids having life insurance as ensuring they will be able to get affordable life insurance for the rest of their lives. There is a huge advantage to getting them insured while they are still healthy.
E.g. A child who develops type 1 diabetes will not be able to get a life insurance policy until they are at least 16 years old, and then far above average rates will follow them the rest of their lives. If they got even a term policy before developing diabetes, the policy can later be converted to a permanent policy at the same health rating they got before they were diagnosed. If on a child rider, they can get 5 times the amount of the rider rated Standard when they become adults, no health questions asked.
There is a tendency to not think about life insurance until there is a scare in one's health. Having life insurance as a child just takes care of it, no matter what the future brings.