My Children Don’t Have Life Insurance. Here’s Why

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Does life insurance for children make sense?


Key points

  • Life insurance provides important insurance protection.
  • I do not have life insurance for my children.
  • Buying life insurance for children usually does not make money.

Life insurance provides the most important protection. In my family, we have life insurance for me and my husband. However, we do not have life insurance for my two children — even though we often make the mistake of buying more insurance to protect our assets.

Not having children’s policies is not neglect. We deliberately chose not to purchase life insurance for our son or daughter. And that’s because we don’t believe that buying this type of policy is a good investment.

This is why we don’t think life insurance for children makes sense

Child life insurance can be purchased separately from stand-alone insurance or it can be purchased as an add-on to a parent’s policy. Usually, parents or grandparents buy these for their children. This is different from adult purchase laws because adults often buy coverage on their own to protect their families.

Generally, when life insurance is purchased for children, it is a whole life policy that is supposed to be in effect forever. Parents can pay the premiums until the children grow up, at which point they will receive payments to maintain the plan. And, like most life insurance plans, this policy can act as a sales vehicle that generates income. Redemption does not expire as long as payment is made.

But there are some problems that make us believe that it is not worth buying this kind of media.

First, life insurance is designed to replace the income that the deceased was providing or valuable services that the deceased was providing – such as, for example, a stay-at-home mother who takes care of the children.

Our children, as much as we love them, do not bring money into our house or provide any work that we would need to hire someone to do if it happened to them. In fact, they are taking money from us instead of bringing us money. As a result, there is no need to have any support available to us to help us financially if the worst happens.

Now, the idea of ​​buying whole life insurance for children is to help ensure that they are insured because whole life for children can be purchased at a lower cost before they grow up – and before they develop pre-existing conditions. But this only works if the process is active throughout their childhood and if they choose to continue publishing for the rest of their lives when they grow up. This is often not the case because term life policies are affordable and provide all the coverage that most people need.

Since we don’t want to pay premiums over the years for a whole life policy that we don’t need to protect our money and that we don’t think our son or daughter will want to save for when they grow up, there’s no reason to do it. buying life insurance for our children.

Should you get life insurance for your children?

Ultimately, for most people, buying life insurance for children may not be necessary. It doesn’t hurt to have a small policy that can cover funeral expenses in the event of a disaster, but buying a large whole life policy may not be wise for people who don’t bring in cash and who can sell their money cheap. protected for a long time afterwards.

It is true that everyone should do what is right for their family life. But many times, some have also found, like us, that buying life insurance for their children doesn’t make good financial sense.

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