Life Insurance for Children?

The mere thought of this makes people cringe.  It is a question periodically asked by people.  Should I put life insurance on my children? There is a question that needs to be asked first.  Does the adult, parent, or guardian have enough life insurance?  If the answer can be an honest yes, then here is my response.

Everyone needs life insurance.  Why?  Everyone is going to die, period. The when is never known only by God.   If children are healthy, permanent life insurance not term insurance should be purchased. Here are some reasons why:


  1. It locks in insurability. Many conditions and diseases can manifest during childhood that can make someone less insurable. Diabetes, cancer, asthma, obesity, the list is endless. When they become adults, they may not be able to qualify for life insurance.
  2. It is inexpensive. Many people come to me and get quotes for life insurance, then respond how expensive it is. Life insurance is based on many factors, primarily age, sex, and health status. Children usually have all of these factors in their favor.
  3. What a great gift a parent, grandparent, or guardian can give to a child. Yes, I said gift, a legacy gift. When they become adults, you present to them, “a life insurance policy we took out when you were a child, it has cash value, its cost is minimal, possibly paid up, and it is yours now to protect your family and obligations.”
  4. In the event that a catastrophic event happens that a child dies due to sickness, accident, or something else, there is a source of money to bury them with dignity, and give yourself time to grieve properly with time away from work.
  5. Life insurance can be used as a way to systematically save for their future.


Do I recommend life insurance for children?  If the parent has adequate amounts of life insurance, yes.  In many states, the amount of life insurance that can be obtained is usually restricted by a multiple of the amount of insurance the parent or guardian has for themselves.

Life insurance for children?  Perhaps it needs to be looked at in an honest manner.  Give this some thought.


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