[Sarah]

Life insurance question: I’m a single mom and a member of a mom’s group. Someone asked about life insurance for her child. I said this isn’t necessary because the purpose of life insurance is to replace lost income. Apparently this was an unpopular opinion. Many people stated you need to have a policy on your child/children to cover potential funeral expenses. I feel like, heaven forbid, that should be covered by an emergency fund. Now I’m wondering am I wrong? Do I need a policy for my child?

[Hunter]

I agree with what you said. Life insurance is probably the most scandalous industry next to healthcare, so insurance agents will convince anyone and everyone that they need a policy for every imaginable circumstance. I don’t think paying a premium for any type of life insurance policy is necessary unless you will potentially be leaving someone behind with a bunch of debt that they can’t handle. In which case a term policy MIGHT be beneficial.

That’s it.

[Brenda]

I probably have an unpopular opinion however my life experience has taught me this. It’s wise to buy a small life insurance policy that your child can increase as they get older if they’re uninsurable at that point. You never know what health issues they may face when they get older.

Ex: my kids all have a genetic condition that I didn’t know we could pass on that makes them uninsurable as adults. We bought each of them a $25K policy as newborns. When they turn 18, it automatically doubles with no price increase.

At 6 different ages, they can pay more to get more coverage on themselves without health questions which would make them uninsurable as adults.

I’ve tried to get a cheaper policy and found out they are already uninsurable.

Suggested: Best whole life insurance for cash value for 27 year old in NYC?

[Meagan]

I don’t think so. It would be to cover funeral expenses really. And I’m not doing it bc I don’t want to even consider that scenario. Especially the term policies.

[Katelynn]

We have a small policy on each kid for 25k. When our kids are adults they purchase their own policy for their needs.

We also contribute to a 529 and UTMA weekly as automatic deposit. Not much but it sure adds up.

529 does affect FASFA but it’s counted less vs cash in the bank.

The UTMA is nice since not all FASFA / 529 covers random expenses.

Like they say have a few “baskets”

[Tanya]

So… I’m one of the rare situations where I nearly died at 19 and will never qualify for life insurance. I was very fortunate in that I ultimately worked for the federal government and was able to get some group insurance thru them. My son has the same genetic blood disorder and I was considering getting him insurance in case he ever needs it. Then our financial advisor told us to put whatever money I was going to put into premiums into an actual act (or 529) and let it accrue interest.

My life insurance has no value at all, so at least with this, you actually get some money out of it.

I know there is cash value insurance, but with the many changes happening with 529s (using towards first home, or ROTH contributions etc), for me that seemed like the right move.

[Antoinette]

I think having life insurance to pay final expenses for a child, is an old timey thing. My friend’s mom had it on all of the kids, because the grandmother advised it. That was 40+ years ago.

Don’t quote me on it, but it was a thing, Gerber Life Insurance I think. I remember vaguely seeing ads for it in the back of magazines.

You can check also: Who has decent deals on term life insurance?

[Aria]

I have policies for myself and my daughter through work (I’m in the funeral industry). If you have the finances to afford your average funeral, then I would say it’s not necessary. For others though, I would always recommend because you never know what will happen. With funeral costs spiking, I try to make sure to be prepared for the worst.

I also have a preplanning guide through my employer in which I can house electronic copies of all personal documents and arrange my services, so that if I were to go it’s all done. It’s not something that many think about until it’s too late, but very important.

Unless they have very healthy savings, I would never discourage getting coverage.

[Julie]

I believe in life insurance on children for a few reasons/scenarios.

1. If you don’t have the money to cover the funeral expenses.
2. If you don’t have enough money to take time off of work, because think about how you are going to feel in that situation.
3. You are utilizing whole life with a fixed payment term.
4. You can buy a policy with a guaranteed insurability clause, because there are many reasons children may become uninsurable.

[Ben]

Friend of mine lost her 16-year-old child. Her e fund got depleted with medical and funeral costs. She was emotionally unable to work for about 6 months. The life insurance she got is the only thing that kept it from being financially devastating.

You don’t need a permanent policy. You can get a child term rider.

[Jonathan]

The one thought that no one is saying is the grieving period if something were to happen. Some parents lose their ability to work due to the loss of a child. The insurance is not only for a burial but also any gaps in income over grieving and not to work. Also depending on the age of the child you will only be able to get permanent insurance not term until they are over the age of 18. Lots to consider.

An emergency fund can be all you need but grief hits us all differently and if go out on fmla you will not lose your job but the income does stop. Just like no working spouses. If they pass and there are children the survivor has to now grieve on top of trying to work and do all the challenges the other no working spouse was doing. It’s just easier to have a plan in place.

There will be lost income, a time needed for grief and time away from work plus expenses on the burial side. Get the policy. A $50,000 policy on a child is not much at all and worth it for peace of mind. If you have to save up for the unthinkable and it happens sooner unexpected then you will not be prepared.

And yes I do work for Prudential but I’m not on here trying to sell you anything but give a perspective from the negative responses you are getting. We see what they do not due to being in the line of work. You are also saving age in life insurance and health rating as well.

If your child has nothing happen to them which is what we all want but has a medical issue that would normally as an adult make them uninsurable then you are helping them for down the road in protecting their family while your child grows and works on their own financial path. You can always check to see if work has any child options for life insurance.

If you have any coverage through your work then it’s likely there is something for them as well. Just food for thought.

Also, check out: Do you think paying for whole life insurance is a good idea?

[Donna]

Buy it, the last thing you should be worried about is the finances you need to bury your child. Imagine not having it when you need it? What if it happens in another country?

Evacuation transfers by air is very expensive, sometimes travel insurance don’t cover the whole thing ($25k to $200k). You just don’t know. You may also have co-pays and deductibles for medical that needs to get paid. $30 a month or less is an expense that can take away some of the stress.

You can always transfer it to him to continue when he gets bigger.

[Rick]

I generally believe what you said, but I was offerred a life insurance policy through work for both of my kids for $1.XX/month for $25k of coverage. As a single dad, I took it just incase.

[Andrew]

I would say insurance for children is important. Most policies issued to minors can be converted to a standard policy without having to show proof of insurability. But everyone’s situation and beliefs are different. I got my daughter one, as we have a history of medical conditions that will 100 percent prevent her from getting insurance as an adult.

There is no right or wrong answer to “do kids need life insurance?”

Do what you feel is best for your family. …disclaimer, I sell life insurance, so I have this discussion a lot.

Don’t miss: Life Insurance question: Should I be shopping around for rates? If you used Zander who did you end up with? Do they do medical exam?

[Kasey]

I’d think of it as an emotional train wreck and probably unable to work for several months. So if you have enough emergency fund I guess not needed.

But our is like $3 a month through our employer so it’s work it to know I would have to wipe out my emeeyfund and could have time to grieve.

[David]

This is shortsighted. People are only talking about if the child dies, but what about if your child gets diagnosed with a pre existing condition prior to adulthood? Now their ability to get life insurance is compromised based on their health. They could have been “grandfathered” in. I know two people who have who have multiple sclerosis and lupus who were diagnosed early in life who wish their parents would have placed a policy on them while they were children so they could have decent coverage today.

Also if you have a child rider on your term policy it covers all the kids. Let’s say you have a child born after the child rider has been in place and that child is born with a pre existing condition that child can still have coverage because you already had an existing child rider in place.

[Susie]

Most people can’t cover a $1000 emergency so those people do need the life insurance. If you can easily pay for a funeral then you don’t. I think funerals can be costly.

But also time to be off work and grieve.

[Author]

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