Whole Life Insurance for a Child
There are advantages of purchasing life insurance for your child. However, in many cases the money spent to insure a child might be better invested in insurance on the parents.
Since you need to be in good health to qualify for life insurance, you may want to purchase a policy while your child is healthy. You never know what might happen. You can buy child life insurance online today and know that the coverage is in place before it is needed.
Since whole life insurance rates are largely based on the age at the time of issue, a younger person can lock in a good rate. This can keep costs down over a life time.
Whole life insurance on children can be a good idea, but it is much more important to insure the parents of the child. If a parent who is uninsured dies, the life of the children left behind can be doubly damaged.
The death of a child is certainly a tragedy, but it is not nearly as impactful on the finances of the rest of the family as the death of a parent typically is. The only thing that life insurance can replace is money. The loss of a child is not a significant financial loss in most households.
If a child’s parents don’t have adequate insurance for life insurance, they should not be lured by the prospect of buying cheap child life insurance. Life insurance for the parents is paramount because their premature death is both a financial loss and a loss of a family member.
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I agree; I think it’s better if a parent, rather than a child, is insured. Strictly speaking in financial terms, when a parent dies, it’s a bigger blow to a household’s income than if a child passes away.
Comment by Life Insurance in Georgia — November 17, 2010 @ 9:12 pm