View Full Version : Good rate for children's life insurance?
01-10-2007, 07:50 AM
I always toss those flyers for children's life insurance but last year signed up for one that gave me $20K for only $50.00 per year per child, guaranteed renewable ( but who knows what rate). Just wondering if anyone has found anything better? ---Kathy
01-10-2007, 08:00 AM
I have always wondered why people but life insurance for children. Can you tell me why you think you need it?
01-10-2007, 08:11 AM
I lost a daughter as an infant. I had no insurance and had to depend on payments and debt for her funeral.
Another reason, it is cheap for them to get insurance young and often keep the rate as they get older. As for getting whole life, it builds money that they can cash.. (I am in 50's and don't know if whole life is still available)
01-10-2007, 08:13 AM
My parents had policies for each of us (4 kids). He made maybe $30K, but we had everything we "needed" - no extras, really. BUT - he wanted to be sure that if anything happened to one of us, God forbid, that we would be able to have a funeral - something he could not have paid for otherwise.
He had some really awesome deal on kids insurance through his own, kind of like add-on policies (this was 30 years ago). I doubt he paid more than $15/yr for each policy and the pay-off would have only been something like $5000. Enough to have a decent funeral/burial, but nothing over-the-top.
Of course he did not like to think of such things, but he was practical. Never needed to use them, thank God, but they were there. I think they all expired when we turned 18 or graduated from college or something - kind of like being on your parents health insurance.
Now, I do not have a policy on my own DD, but she is an only child and IF something tragic were to happen we could afford it.
01-10-2007, 08:14 AM
We've never bought a child policy because there really is no need for it, as your child doesn't normally have debts to be paid off, except funeral costs. The only thing we have considered is possibly the type of policies that allow the child to get an automatic amount of coverage when they get older with no medical exam. There was a policy we looked at that would give Connor an automatic $200,000 policy at age 21 with no medical. I forget what the premiums were, but it was reasonable. This would come in really handy should the child develop some sort of health condition that would exempt them from coverage or make it really expensive to get life insurance.
It's not in the budget right now anyway...we're still more concerned with getting ourselves covered a bit more with our pending new arrival and setting up a second RESP account for the new one. But if we had the cash, I might consider it. As more time goes by, there are more cancers and diabetes cropping up in my family, and dh doesn't have any medical history about his birth father, so who knows what Connor is predisposed to.
01-10-2007, 08:24 AM
We have life insurance on our 2 children in the amount of 10k each...basically, God forbid, to cover funeral expenses. Our policy is through my husband's policy at work -- we pay $5.82 bi-weekly. Of course, if he ever leaves his job, we no longer have the policy.
01-10-2007, 08:30 AM
Robin, we carry it because we know we would temporarily be unable to function were something to happen to one of our kids. There is no way Jack could just get up and go to work the week after. We would need time. And to have time, you need money. That would be our savings, the college funds, or our retirement if there weren't insurance.
01-10-2007, 08:36 AM
If you are in your young age and lose a child (God forbid) you aren't trying to pay off loans. The cost of a funeral is high...Nothing we want to think about!
If you have $6000. to 10000 put away...now worries!
01-10-2007, 08:53 AM
My son has 4 policies so I hope nothing happens to him, it might look bad:scared1: Anyway, I was really young when I had him but I still wanted to prepare for his future. I bought the gerber life plan. It's only $10 a month for 25,000. The rate will never grow up. When he turns 18 it will up to 30,000 and at 25 it will go up to 35,000 and the rates will never increase. He can also cash it in for education and not pay any taxes on it. I figured I would just pay it until I die and he can then take over the payments and he will have a 35,000 policy as an adult for $10 a month. Can't beat that. I didn't have enough to save for college at the time or start a savings account but I could afford that. It's whole life. My mom and Grandma also bought it for him to use for school or for when he has a family. Once I started working for the Govt. I got life insurance that automatically covered me, DH and DS so he has 4 policies. If something were to happen to him later in life his family would be covered without any burden. It was the one thing I could do for him when he was born and I don't regret it. It wasn't about the money. If something did happen to him and I couldn't afford it I would take out a loan or get help from family. It was never about the money. It was about his funeral. When he grows up he will have 105,000 in insurance for $30 a month and I will be more than happy to pay for it.
01-10-2007, 08:58 AM
Most people have policies through their work adequate enough to cover the funeral costs for a child.
Some people might have children with health conditions that will make purchasing adequate health insurance as an adult difficult. Policies written for children often do not carry the disqualifying factors or require health exams - then the child will be able to carry that policy with them for their entire life.
I'm really not current on Life Insurance rates because they seem to be constantly changing. There are many websites which will give you quotes from several different companies - you might want to start there.
01-10-2007, 09:36 AM
I have the Gerber on both of my children. It is small enough to take care of final expenses without any extra. It is inexpensive but when I had my children I decided to stay home until they began school to do this meant serious streamlining and there would have been nothing in case of any emergency. An unexpected tragedy would have been compounded by the debt it would have caused. Now that I am back to work, it makes no sense to drop the policy ($18 quarterly for both policies). The kids can convert it if they want to or I will drop them at 18. Once they begin working they will take out a policy on their own.
My sister has her kids rediculously over insured, it's not an arguement I feel like having so whatever!
01-10-2007, 09:41 AM
Final expenses can quickly add up to more than $10,000. Also it establishes a base of insurance to fall back on later in the childs life should there be a pre-exsisting condition that would make life insurance prohibitedly expensive or unable to get.
We bought $100,000 on both of our children at birth due to my wifes (and her families) history of cancer and the good chance that they would not qualify to purchase life insurance on their own later.
01-10-2007, 11:39 AM
I also lost a dd at birth, I did not have life insurance and I definitely had a full funeral etc. I did not know this but for children/babies the casket and vault come together. I did not know anything about this type of vault system but alway knew that the steel (?) vault were really good, so I had to have both! (When you are in the situation you don't always think clearly.) The funeral itself was not that expensive, $1,500., then we had to buy a plot and of course we wanted enough for the whole family. We ended up purchasing 4 plots they were $2,000. each. so really the expenses of just DD was $3,500. We paid it off pretty quick because we did not have the expenses of the additional child.:sad1: ( food, clothing, diapers, daycare, if used) I certainly don't regret not having insurance, and still don't for other DD, instead I have a college account making good interest that she can use while she is alive. I think an insurance policy on a child is not a great investment, even if they can cash it in later, they will get very little money compared to how much you have put in an interest bearing account. Which you will have access to until they turn 18 and can use if needed. It would be interesting to know what each investment would yield when the child turns 18. This is just MY opinion and certainly don't want to upset anyone!
01-10-2007, 12:15 PM
We got insurance about 7 years ago for the three kids we had at the time because we were buying insurance for me and it was really cheap to put them on as well, we pay $14.xx a month for all of us. I'm glad I did, one of those children developed leukemia about a year after that and now if he didn't already have this policy it would make it difficult for him to get life insurance.
01-10-2007, 12:19 PM
I also have small policies on my kids in the event something tragic should happen. It's much easier to sacrifice a few dollars a month now than to think how we would pay for funeral expenses if something happened. That's not a stress I want to have to consider at that time. We also love the fact that it locks it in and guarantees their policies in the future.
01-10-2007, 12:46 PM
We have a child policy added onto our term life insurance. It is very inexpensive and covers 15k to use for final expenses. If you already have a term life policy, see if you can add the children to that. The other kinds of policies that include a savings feature cost a lot more than what I paid for mine and you are better off putting the difference in a mutual fund. I have never used life insurance as an investment.
01-10-2007, 01:35 PM
I get 15K per my two kids through work for a quarter a week.
That is very hard to beat. It is solely for funeral expenses
should the unthinkable happen.
01-10-2007, 01:44 PM
when my son passed away at 2 and 1/2 years , we had no ins., and total funeral expenses were about $12,000
01-10-2007, 09:47 PM
DH and I have policies through Lutheran Brotherhood, and the "child rider" policy if free for $5,000 coverage. My grandma also bought the kids a policy when they were born, and my mom is paying for that one now since my grandma passed away. I think it's something like $12/year for $10,000 coverage, but I'm not sure. I also have a little bit of coverage on them through work, it's only a few cents each paycheck, so I figured why not. My thought is that when you lose a child, not only do you have funeral expenses (we don't own plots yet, so that alone would be a huge expense!), you also may have huge medical bills to pay off.
01-10-2007, 10:01 PM
Most of my friends who have life insurance for their children bought it when their kids were young because they thought they "were supposed to do so". If you ask WHY they have it, they don't really have an answer.
People buy life insurance for two reasons:
1) To cover funeral expenses, which can be expensive -- any of us COULD need to pay for a funeral at any time.
2) To replace income that the deceased person had been providing. In the case of a child -- this is a cold, financial answer -- unless the child is a child movie star or model, no one suffers loss of income because of the child's death. On the other hand, if a family loses a parent, significant income may need to be replaced.
Lots of employers offer small plans for children -- $5000 or $10,000, just enough to pay for a funeral -- for very little money. I have something like this, and I pay $1/month for all my children. Statistically, it's very unlikely that they'll ever use it, but $1 a month is a very low cost.
More insurance than that, however, just doesn't make financial sense. The insurance people often stretch the truth about their plans: Whole life is a poor finanical investment. If you're interested in building wealth, which your child might cash in one day, better avenues exist. And the amount they'll pay "if your child becomes uninsurable because of health reasons" is not worth the relatively high price of these child-plans.
I think it's worthwhile to stop and consider what insurance your child really NEEDS -- and don't take advice from those Gerber TV commercials. Your child is much more likely to be disabled than to die young. Yet how many of us have disability insurance for our children?
01-10-2007, 10:27 PM
If you decide to buy, just be sure to shop around. The Gerber plan really sounds expensive. When i was 30, I bought $500,000 term at guaranteed rate of $250/year for 20 years(I'm in good health, non-smoker, etc.). So, $10/month or $120/yr for only $25,000 of insurance seems to be pretty expensive esp. for a child who I would think would be less likely to die than me.
01-10-2007, 11:43 PM
Why? Because you never know what can happen! We lost our dd, 14 this past Aug. Until age 13, she was a very healthy child and other than the common cold and having her tonsils removed there was nothing wrong with her. At the age of 13, she was diagnosed with an extremely rare form of ovarian cancer (only about a dozen cases WORLDWIDE). Did we know this was going to happen? Never in our wildest nightmares. Losing a child is the absolute worst type of loss one can endure and you do not function well at all. I still have sleepless nights, nightmares, total recollections/visions of the final days when I try to sleep, the why's, etc etc etc.
We had a $10K rider on our term policies on both of our daughters. The ins. was included in our policies and we didn't think about "needing" it when we signed up for it. I am very thankful we had it, but still very sad that we had to use it.
The funeral costs, burial site, digging site, headstone, vase, church, etc etc added up to easily $9K and it was not a lavish funeral. Plus add in all of the medical bills that are still outstanding from an unexpected disease like this. $10K is really a drop in the bucket.
01-11-2007, 12:58 AM
We have Gerber for all three of our children. It runs somewhere around 6.00 a month for 10,000 I believe. They have had it since birth. Although talking about rates I never would have guessed that boy's are more expensive even as babies to insure. At least their rate is locked in.
01-11-2007, 07:17 AM
I have always wondered why people but life insurance for children. Can you tell me why you think you need it?
It is better to buy a policy now because:
1) If the unfortunate happens, there will be funeral expenses...
2) I'll need therapy
3) But the best reason is because life insurance is cheap and easy to get on a healthy kid....As the child ages, that heart murmur or some other health problem may come up that may make them uninsurable or have high rates. If you get them at least a policy of $30-50K they'd have something at least.
4) and most young adults don't worry about life insurance until they get married. I plan to carry my dd's policy until she takes it over JIC.
We pay $30 a year for a $30K policy on DD.
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