life insurance???

nschuetz01 · October 2013

I'm embarrassed that I have waited this long, but I have been struggling with this decision.....life insurance for your kids, yay it nay???

I have a savings account started for lo, and it has quite a bit in it already. I spoke with a financial advisor shortly after lo was born and he said life insurance for children is pointless since if they were to die (other than the funeral costs) they pose no financial burden. I'm a very frugal person and like to be prepared and have back ups.

What does everyone else think and/or do?

mexicolombiana · October 2013

I wouldn't pay into life insurance for a child. I would just have really good policies for you and your DH and invest $ somewhere else for their college.

smileybabyboy · October 2013

We don't have life insurance on DS. I think it's kinda strange when people get life insurance for their LO's. You hear that happening on the news and then the child disappears.

MrsH11710 · October 2013

That's a tough one. I originally thought that life insurance for my children wasn't necesary, but my policy recently offered life insurance for both my children for less than $2 a month. So I signed up.

So I guess my advice would be to see what the cost is first. If it's pennies (like mine) then it was worth it for me. If it's more than that then I'd say it's not really necessary.

nschuetz01 · October 2013

So if I did life insurance I would probably do the Gerber plan that would allow it to be used for education if we wanted. Good idea or not? Or are their better options than this for education? I just don't want the money to have a bunch of restrictions and penalties/tired Up?

jnnfrrose6 · October 2013

There's a reason kid's life insurance is so cheap. They are young and less likely to need it/less risk to the insurer. As others have said, I don't think it's worth it. For yourself, absolutely. For LO, nope.

oliversmommy32912 · October 2013

smileybabyboy said:
We don't have life insurance on DS. I think it's kinda strange when people get life insurance for their LO's. You hear that happening on the news and then the child disappears.

What's strange about it?

We don't have a policy but I can absolutely see why someone would. Think about how devastating it would be to lose a child. I know of that was me I would be unable to function. Unable to work. I would want the best things for LO's funeral without having to worry about where the money would come from. It's not like we would take the money and go to the Bahamas. That money would be used so we could live while we deal with the devastation of getting our hearts ripped out and our lives turned upside down.

virginiagirl11 · November 2013

oliversmommy32912 said:

We don't have life insurance on DS. I think it's kinda strange when people get life insurance for their LO's. You hear that happening on the news and then the child disappears.
What's strange about it? We don't have a policy but I can absolutely see why someone would. Think about how devastating it would be to lose a child. I know of that was me I would be unable to function. Unable to work. I would want the best things for LO's funeral without having to worry about where the money would come from. It's not like we would take the money and go to the Bahamas. That money would be used so we could live while we deal with the devastation of getting our hearts ripped out and our lives turned upside down.

This. We got $10K policies on the boys through my work for like $2/mo. total. If something happens, at least we will have some money to cover any related expenses while we try to put the pieces of our lives back together.

amberab023 · November 2013

Life insurance serves many purposes! 1) Look at the living benefit for your child (building cash). 2) You are giving them a concrete gift that they can add to when they are older and have families of their own (without doing a physical!!) 3) If your child develps health issues, they will never be able to get life insurance or may be rated and too expensive to keep. 4) Worst case, your child dies and you have a benfit that you can use for funeral expense or can make donation to a charity in their name.

Most "baby" policies build cash value, but the most important thing you are doing is protecting their insurability. Make sure you buy from the right company! Make sure it's a Mutual company and NOT a stock company!

mexicolombiana · November 2013

LalaMama81 said:

amberab023 said:

Life insurance serves many purposes! 1) Look at the living benefit for your child (building cash). 2) You are giving them a concrete gift that they can add to when they are older and have families of their own (without doing a physical!!) 3) If your child develps health issues, they will never be able to get life insurance or may be rated and too expensive to keep. 4) Worst case, your child dies and you have a benfit that you can use for funeral expense or can make donation to a charity in their name.

Most "baby" policies build cash value, but the most important thing you are doing is protecting their insurability. Make sure you buy from the right company! Make sure it's a Mutual company and NOT a stock company!

Life insurance is not meant to be an investment. If you'd like to save money for your child, do so in a different way.

totally agree.

anna&jl2011 · November 2013

We have 25K on DS. It is a 20 year whole life policy. Therefore you only pay on it for 20 years and he has it his entire life. Plus is gains cash value. The policy cost us 27.21 a month. Its much cheaper to get it when they are little because the older you are the more it cost you per month.

melody921 · November 2013

The advantage of getting life insurance for a child is that you can lock in a very low rate with no medical requirements. When the child hits certain ages -- 21, 35, etc., they then have the option to add more insurance with no medical questions asked. We have policies for both of our kids. It was a way to give them a leg up for when they're older and are looking to invest in insurance.

meg_2006 · November 2013

Our life insurance policies have a free rider to cover burial costs if something were to happen.

anna&jl2011 · November 2013

In 20 years when the policy is completely paid for we will be paid $6350. So either way you don't lose money. The whole point in getting the whole policy life insurance so he'll have it no matter how long he lives and it will be paid for when he is 20. This is just what we chose to do for our son.

amberab023 · November 2013

From the looks of this page, it looks like you know all about insurance benefits, educational programs, and where to invest money.

nschuetz01 · November 2013

I think if i did life insurance at all it would be whole, because at least there is a pay out. My grandmother bought be a small whole policy when I was born and thanks to your feedback I understand why. I guess Im trying to figure out now what is more important.....purly saving for whatever (ex. education) or buying whole life for later in life????? In either case we are saving now to pay out later. Any whole life insurance suggestions????

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