Life insurance on kids is a much debated issue. Typically life insurance is used to replace lost income or pay debts of the estate.
Most children have neither.
But a child that dies due to illness or injury will often have unpaid medical bills. There are also bills associated with the burial process.
In addition to this need, insurance can provide a financial cushion for the family and allow them time to grieve with dignity rather than returning to work the next day.
To figure out how much life insurance you need with kids, you can make a little worksheet. Put down how much your family spends on average each year, and subtract your spouse's salary from that. The difference is what you need to cover. Multiple it by how many years until your children are adults. Throw in extra for college. That is how much life insurance you may want to purchase.
Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
At first I understood the question as Peggy did, then I saw Bob's answer... So I'll address both concepts. Life insurance FOR children is a great idea and a great GIFT! That is WHole Life - not Term. You can start a policy on a baby for $50,000 very inexpensively and by the time they are adult, the policy could well have doubled in face value and grown several thousands of dollars in cash value. That cash could be used for college, to buy a car, etc. Then the policy could be turned over to the now adult child to continue as protection for their future family, etc.
The amount of Life insurance needed for yourself when you have children has many variables to consider when determining how much is enough. I always recommend to buy as much as you can afford. Again, Whole Life. There are tax advantages, cash value and other benefits that only come with Whole Life. If you also have a spouse in addition to the children you'll want to consider how much it would take to replace your income. Is there a mortgage? Do you want to pay for college for your kids? These things and more should be considered when determining how much is needed. You're best bet is to consult with an experienced Insurance Adviser to figure out what your needs are, and then to help you find the best company and policy to meet those needs.
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Most children have neither.
But a child that dies due to illness or injury will often have unpaid medical bills. There are also bills associated with the burial process.
In addition to this need, insurance can provide a financial cushion for the family and allow them time to grieve with dignity rather than returning to work the next day.
The amount of Life insurance needed for yourself when you have children has many variables to consider when determining how much is enough. I always recommend to buy as much as you can afford. Again, Whole Life. There are tax advantages, cash value and other benefits that only come with Whole Life. If you also have a spouse in addition to the children you'll want to consider how much it would take to replace your income. Is there a mortgage? Do you want to pay for college for your kids? These things and more should be considered when determining how much is needed. You're best bet is to consult with an experienced Insurance Adviser to figure out what your needs are, and then to help you find the best company and policy to meet those needs.