Life Insurance for Kids

[Pollito916]

DH's will be slightly higher as he's a more 'risky' investor than I am.

This is not necessarily true. I don't know what the person who set up your accounts told you, but there is NEVER a guarantee of a return on your investments (and it is actually an NASD violation for someone to lead you to believe so). Historically, riskier investments have performed better over the long run, but there are no guarantees. Your DH's return may or may not be higher, it all depends on the performance of the stock market.

 

[Colinsmom]

We have a strong family history (both DH's side and mine, including DH himself) of cancer, so we chose to purchase policies for our kids to guarantee their future insurability. Our policies (from Northwestern Mutual) are low cash value (we're saving separately for their collge educations) but the future purchase options are pretty generous - they can purchase an additional amount equal to the original face at various future ages, plus upon marriage and the addition of any children. The additional purchase amounts are at the most favorable rates available at the time of purchase.

If we did not have this family history, we would not have purchased life insurance for our children.

 

[deedeetoo]

Life insurance for kids is only worth it if you do not have enough money to bury them if the worst may happen.

My dh used to sell insurance many years ago and says that these kids life insurance policies are pure profit for the insurance companies and a complete ripoff for those who buy them.

There is no truth to the claim that your child won't be insurable if you don't buy insurance as a child. Have you tried to buy insurance as an adult? Did they even ask if you had insurance as a child? NO. Its a pure marketing ploy.

 

[Colinsmom]

There is no truth to the claim that your child won't be insurable if you don't buy insurance as a child. Have you tried to buy insurance as an adult? Did they even ask if you had insurance as a child? NO. Its a pure marketing ploy.

I work in the life insurance industry, too. No one claims that you won't be insurable as an adult if you don't buy insurance as a child, not even the life insurance companies. The risk (albeit very small) is that you may develop a health condition that makes it difficult or impossible to get life insurance when you eventually need it. A permanent policy purchased when a child is young and healthy can be kept into adulthood and can't be taken away from the child should health conditions develop.

Want a more concrete example? My DH had cancer when he was 21. As a result, few companies are willing to sell him life insurance now. He didn't have life insurance when he got sick, and now when he needs it (married with kids) he can't easily get it.

 

[wlfans]

I would recommend not buying a life policy for your child. Make sure you and your husband are covered . Enough to cover all bills in the event you or your husband pass away. A child's policy is throwing money out the window.
Term is usually the best and cheaper.
Any money you wanted or thought of investing in a life policy could be put into a 529 plan. Some states allow you to take deduction on the amount you invest. Some 529 plans have very high expense ratios. These expense ratios are fees. Anything over 1.00% is high. You don't have to invest in your state's plan. A person from AZ can invest in the 529 in CT. One of the better plans is in Nevada run by Vanguard. You can contact them directly or try you state tres. I would avoid a financial planner for dealing with this. It's very very easy. Just call or email then there is the paperwork. Most plans will invest by age bracket in mutual funds. A child that is one-eight would be manily stocks and when the child is 15-18 the money will be more in bonds to protect the accurred investment. We usually use birthday money and invest monthly. Monthly amounts you can invest range from as little as $25 to more.

Good luck, we started with our kids and can't believe how much they now have.

 

[mrsltg]

Buy life insurance for your child. It is a good idea. You don't need to buy a huge policy, just one big enough to cover funeral expenses and any time you will take off of work.

I have lost a child. I speak from experience. There is no way I was going to go cheap on my son's final arrangements. If I had wanted his casket lined with baby blue silk, I would have had it done. You do not plan to lose a child, but when it happens, it is stunning. Not having to worry about bills is a very nice benefit.

Further, let me assure you, you do not want to have to go back to work right away. I know some parents who have, and some who have not been able to summon their strength to get out of bed for weeks and sometimes months. I came back to work immediately (8 days later). I would then go home, feed my three year old a bowl of cereal, crawl into bed and cry myself to sleep. I should have stayed home and taken care of myself. At least I had a choice. Many of the other parents I know did not. They had to be at work. This was regardless of night spent crying themselves to the point of vomitting or staring at a wall all night long.

Really, buy the insurance. Not for long term benefits of insurability, but for the piece of mind that it brings in knowing you can financially handle the unthinkable.

 

[thepeach80]

I don't have $10K to cover the cost of a funeral and it would take me a long time to save all that $ in a savings account so we do have insurance on the kids (at least the boys, we need to check to see if Ilana got added when she was born, oops). It's $10K and it costs us $1 a month total, even if we had 10 kids, it'd be $1. It's through DH's employer who we forsee him being employed w/ for a long time. I do have a policy though from when I was a child though that my mom still has for $50K.

 

[robertsmom]

When my son was born, my dad took out a life insurance policy on him (he did the same for my sister's kids). At the age of 2, my DS developed Type 1 diabetes. I am very glad that he has that policy because several insurance people have told me that it would be very difficult for him to get coverage as an adult with a chronic illness.

 

[kelliebelly]

We have term policies on both of our children. I like the idea that when they get older my husband and I can give them a policy that is already payed for. It isn't a huge amount of money, but still it is something. As an adult it is something I wish my parents had done for me, especially now that I know how much insurance costs.

 

[Pollito916]

I have lost a child. I speak from experience.

Your story brought tears to my eyes. I can only imagine the pain you have been through. I think you have the most convincing argument for buying life insurance for DS.

By the way - congratulations on the new little one, a Christmas baby - how exciting!

 

[PEANUT1]

mrsltg......congrats on your pregnancy. i have a christmas baby too.(she's now 3) she was born dec 23rd and came home xmas morning. I can't imagine losing a child. The thought takes my breath away.

I have child life insurance so that if something terrible happened, at least I wouldn't have to worry about funeral expenses.

I also have 529 college savings plans and haven money taken out of my account monthly for it. I think it is a great idea.

 

[Pollito916]

I just looked at the coverage offered by my company and it is $0.50/month for $10,000 coverage, no matter how many kids I have. Is that enough coverage?

Annual enrollment is over for the year, and I let more than a month go by since I returned to work, so I would have to wait until the end of the year to add it.

 

[Suzanna1973]

$10,000 per child is more than enough. My nephew's funeral and tombstone cost my sister around $8000. I have $10000 on each of my kids. $.50 per month is a really good deal!!!! Congratulations!!!!!

 

[mrsltg]

I just looked at the coverage offered by my company and it is $0.50/month for $10,000 coverage, no matter how many kids I have. Is that enough coverage?

Annual enrollment is over for the year, and I let more than a month go by since I returned to work, so I would have to wait until the end of the year to add it.

That sounds good. It will definitely cover funeral expenses and maybe some extra depending. Start with the $10k and if you find it feasible, add an outside policy when you can to cover a couple of months worth of household expenses. You're not looking to get rich, just to be prepared.

Thank you for the well wishes! We are very excited to be expecting again. My first was born in early December and it was great time of year!

 

[LuvOrlando]

mrsltg
I am sooooo sorry for your loss
To be honest I never considered needing the $ for my kids but was buying it to make sure my future grandkids would be protected in case one of mine becomes uninsurable.

I'll pray for a good night sleep for you tonight and a peaceful day tomorrow