Insurance for children

Discussion in Other Insurance Type started by MrsJones • Dec 19, 2014.

  1. MrsJones

    MrsJonesActive Member

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    I like the availability to buy insurance for children. I use to ignore mailers from Gerber and Globe until my first grandson was born. Doing so gives me an opportunity to be a part of their future and heaven forbid help with any finances in the event of death. I chose Gerber because of the cash value the would accumulate through to the age of 18. Two other advantages are the premiums remain the same and the coverage doubles.

    Has any one taken advantage of this product for their grandchildren?
     
  2. Happyflowerlady

    HappyflowerladyWell-Known Member

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    I have not used Gerber specifically, but I believe that you have made a wise decision in buying a whole life policy for your grandson. The great thing about a whole life policy is that the premiums never go up like term insurance premiums do. That it also builds cash value is a good thing as well.
    While you grandson is growing up, a small policy is all that he would require should something ever happen to him.

    Once he grows up and starts a family, he should still keep the whole life policy, and add term insurance as needed for a larger policy that would be in force while his children were growing up.
    Since a larger policy would possibly take a while to pay out, the little policy that you bought would be paid to his family immediately, while they waited for the other insurance to come through, should something happen to him at that stage of his life.

    By the time your grandson gets to his retirement age; the term insurance is outrageous to buy, and he probably only needs the small whole life policy again.

    So this really IS a policy that will be there for him, whatever age he actually needs it.
     
  3. Parker

    ParkerWell-Known Member

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    When I was actively selling insurance, I bought a whole life insurance policy for my niece. Her parents are the policyholders though. She will have the opportunity to cash out the policy when she turns 18 years old or she can keep the policy. She will have the option to increase the face value without undergoing any underwriting.
     
  4. Gelsemium

    GelsemiumWell-Known Member

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    I don't have any sort of insurance related to my kids, I don't even know how that life insurance for them would work Parker. OK, so let me check out that link you post to see if I can get more educated... :)
     
  5. Pat

    PatWell-Known Member

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    A very good educational insurance site is "LifeHappens.org", the site educates you on the purpose and use of insurance, not just life insurance. Another good reaso for getting life insurance for a child would if while growing up the child has a health issue will not be insurable as an adult they all ready has some coverage. Once you become uninsurable due to health issues regardless of age, you may find it very hard to get additional or any coverage at a price you are able to pay.
     
  6. clairebeautiful

    clairebeautifulActive Member

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    We do not have life insurance on our kids, however, my dad did buy life insurance for me and my siblings when we were kids. My brother cashed his out for like $7,000 when he turned 25. I think if I die now it is worth 25K. I'd almost rather cash it out and take the market value right now.

    I don't plan to buy insurance for my kids at all. First, if God forbid something happens, while I know funerals can be spendy, I don't plan to have them buried in a casket or anything like that. I think there are ways to do a frugal burial where insurance wouldn't be necessary. We have health insurance for them.
     
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