Should Parents Insure their Children with Life Insurance?

Discussion in Life & Health Insurance started by pafjlh • Dec 20, 2012.

  1. pafjlh

    pafjlhActive Member

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    May seem like a simple question with a simple answer. Of course parents should get their children life insurance. But do they, or do most of them think of it as an extra added expense. When I was growing up, my school would offer a life insurance policy, no matter how hard my parents had it financially they always made sure their kids were insured. However, most schools no longer provide life insurance, at least they don't in the state of Arizona. Sad thing is I can't begin to tell you how many car washes I see being held on weekends to raise money for the funeral of a young kid who life was cut so tragically short. Even sadder is can we really blame the parents in the economy for failing to insure their children. I guess for me the bottom line is that it may seem like an extra added expense at the time, but adults take the time to insure themselves (well most do that is) so maybe the should also take the time to see to it that their kids are insured as well. Especially if the system will no longer help them do this.
     
  2. Parker

    ParkerWell-Known Member

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    I didn't know that school districts offer life insurance on children. I don't think it's offered in California. I bought a child's policy for my niece. It was a Whole Life policy. I bought it because when she turned 18 years old, she will be able to cash in the value or convert it to an adult Whole Life policy. Either way, she's off to a good start. She doesn't know that she has the policy. Her parents are the beneficiaries.
     
  3. Bolt

    BoltWell-Known Member

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    My son is six-years old and I haven't really thought about life insurance for him. Life insurance is usually for adults or older people, not children. I don't think life insurance is necessary at this point. He can make those decisions when he is an adult.
     
  4. Pat

    PatWell-Known Member

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    This is a question most people do not understand. The commercial for life insurance for a child does not give the whole story so that more people understand why they would want to purchase life insurance for their children.

    First, if the child should die there is money to pay for the cost of the funeral. No one wants to think about a child dying, but it does happen. It is very sad to see a family having to deal with the death of a child and the unexpected expense also.

    Second, the child has become an adult and has a serious health issue, if the child has no previous insurance once the child becomes an adult they will not be able to get insurance because of the illness, pre-existing condition, or the insurance will be limited.

    3. If the child does become an adult and has a dangerous job their ability to get insurance may be very limited.

    The whole life policy does have a dollar value and grows as it gets older. I have been a life insurance agent for more than 15yrs.

    Hope this information helps give more information why parents want to purchase life insurance for their children.
     
  5. pafjlh

    pafjlhActive Member

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    I know that no one wants to think of their young child dying before them. But as I said in my original post I can't begin to count how many car washes I have seen on weekends to raise money for funerals of children and teens. Right now in the state of Connecticut families are taking donations in order bury those lost so tragically in the mass shooting that took place on December 14th because most were young kids.

    Most of us want to think of dying as only happening to the old. But that isn't always the case, I remember the tragedy that was 9/11 how many of these young individuals in their twenties didn't have life insurance. Here they were working some married and starting families yet they had no life insurance. The thing is in my opinion where there is life it should be insured, because none of us come with a guarantee even the young, as frightening as that may seem.
     
  6. Esperahol

    EsperaholActive Member

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    Yes. Tragedies tend not to discriminate based on concerns like age. Its unfortunate, but true. Besides which some of these plans can provide for college or whatever depending on the company purchased from.
     
  7. Bloomatic

    BloomaticActive Member

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    On the one hand, some believe that this is an excellent way to start planning the future of their children, taking advantage of a very low premium, and in turn ensure that your little access to insurance as an adult, in the unfortunate event that suffer more before any chronic or serious disease. Others, however, point out that today there are several options for savings and pension much more effective if our desire is to ensure the financial future of our children, college, etc, a subject that concerns us parents. Moreover, if we consider that the main purpose of life insurance is to replace the economic contribution of the holder in case of death, it's incongruous to sell life insurance for someone who doesn't work and therefore generates no income. This is one of those issues that causes controversy and which is difficult to obtain uniform criteria.
     
  8. Abraham07

    Abraham07New Member

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    Well mostly parents feel it burden on them because of extra expense but they don't know that they are securing the future of their children. When the children grew up. So I am hundred precent agree with that parents should insure their children life with any insurance policy. I know its hard to do but they can cut their or unnecessary expenses for it.

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    #8Dec 26, 2012
    Last edited: Dec 30, 2012
  9. Traveller

    TravellerMember

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    Parents can get life insurance for their children in the form of a term policy (of five or 10 years, for example) or a universal policy, which locks in a rate permanently and has no end-date. According to Anne-Marie Thomas of the Insurance Hotline, a $250,000 term policy can cost as little as $12 per month, while a universal or “whole” life insurance policy would be significantly more, costing hundreds of dollars per year.
     
  10. copper

    copperMember

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    I indicate insurance is a mean of ensuring the mental satisfaction. If one is secured himself of his family by a effective insurance he will get something that will cover all from any sort of problem. I think parents should cover their children by good insurance policy for health, education and possibly everything.
     
  11. Bolt

    BoltWell-Known Member

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    Well, there is a chance anyone can die at any age but the chances of dying when you are young are slimmer, especially if your children are healthy. My son has no health problems and I am very sure he will not be dying anytime soon. If these was a tragedy I would have to pay for the consequences.
     
  12. Parker

    ParkerWell-Known Member

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    I think getting a term insurance plan for a child is unwise. In my state, you can't get an insurance policy for a child with a payout amount of $250,000. It's illegal. A small whole life policy is good enough. It will cover the child if something tragic happens and it builds cash value. The child can cash it out once he or she hits 18 years old or can keep the policy and increase the value without a physical.
     
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