Term Life Insurance??

[golfgal]

I was told NOT to get life insurance for any of my kids ONLY because DD#1 was born with a heart defect and required open heart surgery when she was 6months old... They told me if I put her on my account as a "rider?" they would deny her coverage and black ball her for the rest of her life... anyone know if this is true??

OH and DH has WAYYYYYYYy more life insurance than what is needed to cover the bills because I am a SAHM.. we are up close to 500k I think... I wish it was more.. (not that I'm money hungry or anything but I would like to feel secure if he was gone being able to pay for 4 kids, college, cars ect ect)

It depends on the company and what is up with the heart defect. If she has it fixed and no lasting medical conditions she should be able to get life insurance. Being DENIED for life insurance isn't a good thing so yes, it is possible. Just talk to a good insurance agent and they will help you through it.

Clarabel--I didn't mean to imply that you didn't research it but still, it isn't necessarily a bad investment. WHat are the reasons they give for not getting it?? Our whole life policies are out performing most of our other investments right now.

 

[HelenePA]

eh it was rated a 9 out of 10 on defects.. I think there is only one worse than what she had.. SOOOO I'll go with what they told us.. Thanks! Good to know they aren't trying to rip me off

 

[golfgal]

eh it was rated a 9 out of 10 on defects.. I think there is only one worse than what she had.. SOOOO I'll go with what they told us.. Thanks! Good to know they aren't trying to rip me off

If it is repaired and fine with no problems at all now she will probably be able to get a policy--especially if it has been 5 years or more. I have a friend that has a son that had a heart defect and it was repaired shortly after birth. He is now 14 and they have not had problems getting life insurance on him--I don't know what or how it ranked though.

If it is an ongoing problem then you won't be able to get anything on her.

 

[SeeVee]

Bull, bull and MORE bull. You should ALWAYS take life insurance out on your children and as much as you can afford--why, because it guarantees that they will HAVE life insurance when they are adults. It has nothing to do with 'profiting' from their death but protecting THEIR future. Say you have a 5 year old that is diagnosed with diabetes, forget ever getting life insurance now. Some day that 5 year old will have a family and will never be able to get life insurance.

As for only covering your existing debt, what about a SAHM with 3 small children, Dad is killed in a car accident. What does the mom do to survive after that? Yes, she can get a job but then she has daycare and a whole host of other expenses that she never had before and what kind of income will she now have??

I am glad you care so much about your family that you want to make sure they are taken care of if you die.

Nice last statement. Does it make you feel good?

Life insurance is for one reason...well, if you want to do it the smart way, it is for one reason: To pay off your debts should you unexpectedly leave this world. That is it. Period. Anyone other use of LI is foolish (i.e. an investment vehicle). And yes, of course there should be some dinero for your family as well. Sorry that I left that out.

Since children have no debt, there is no reason to insure them. The only people that will advise you to insure your children are the insurance companies themselves. No responsible financial advise will suggest that you take out life insurance on children.


http://money.cnn.com/2005/04/05/pf/expert/ask_expert/index.htm

http://money.cnn.com/2005/09/27/pf/kids_insurance_0510/

http://biz.yahoo.com/fool/080314/120550941108.html?.v=1

http://personalinsure.about.com/b/2006/03/08/the-life-insurance-for-children-debate-2.htm

http://www.soundmoneytips.com/article/8584-tips-on-child-life-insurance

http://www.expertbusinesssource.com/article/CA6493860.html

http://www.indianchild.com/health/life-insurance-for-child.htm

http://life-insurance.suite101.com/article.cfm/children_and_life_insurance

They all say the same thing. Life insurance for children is a bad idea. Some people do it (about 15% of purchasers) but there are better alternatives.

 

[mjkacmom]

Bull, bull and MORE bull. You should ALWAYS take life insurance out on your children and as much as you can afford--why, because it guarantees that they will HAVE life insurance when they are adults. It has nothing to do with 'profiting' from their death but protecting THEIR future. Say you have a 5 year old that is diagnosed with diabetes, forget ever getting life insurance now. Some day that 5 year old will have a family and will never be able to get life insurance.

As for only covering your existing debt, what about a SAHM with 3 small children, Dad is killed in a car accident. What does the mom do to survive after that? Yes, she can get a job but then she has daycare and a whole host of other expenses that she never had before and what kind of income will she now have??

I am glad you care so much about your family that you want to make sure they are taken care of if you die.

I'm a SAHM, and we have life insurance on me, in case this should happen.

 

[mjkacmom]

I was told NOT to get life insurance for any of my kids ONLY because DD#1 was born with a heart defect and required open heart surgery when she was 6months old... They told me if I put her on my account as a "rider?" they would deny her coverage and black ball her for the rest of her life... anyone know if this is true??

OH and DH has WAYYYYYYYy more life insurance than what is needed to cover the bills because I am a SAHM.. we are up close to 500k I think... I wish it was more.. (not that I'm money hungry or anything but I would like to feel secure if he was gone being able to pay for 4 kids, college, cars ect ect)

DH is a financial planner, and the calculator he used to determine how much life insurance we needed gave us the figure of one million for him, $500,000 for me - we do live in a high COL area, though. I don't think your DH has too much coverage, and since you are a SAHM, you should have life insurance on yourself as well.

 

[golfgal]

Nice last statement. Does it make you feel good?

Life insurance is for one reason...well, if you want to do it the smart way, it is for one reason: To pay off your debts should you unexpectedly leave this world. That is it. Period. Anyone other use of LI is foolish (i.e. an investment vehicle). And yes, of course there should be some dinero for your family as well. Sorry that I left that out.

Since children have no debt, there is no reason to insure them. The only people that will advise you to insure your children are the insurance companies themselves. No responsible financial advise will suggest that you take out life insurance on children.


http://money.cnn.com/2005/04/05/pf/expert/ask_expert/index.htm

http://money.cnn.com/2005/09/27/pf/kids_insurance_0510/

http://biz.yahoo.com/fool/080314/120550941108.html?.v=1

http://personalinsure.about.com/b/2006/03/08/the-life-insurance-for-children-debate-2.htm

http://www.soundmoneytips.com/article/8584-tips-on-child-life-insurance

http://www.expertbusinesssource.com/article/CA6493860.html

http://www.indianchild.com/health/life-insurance-for-child.htm

http://life-insurance.suite101.com/article.cfm/children_and_life_insurance

They all say the same thing. Life insurance for children is a bad idea. Some people do it (about 15% of purchasers) but there are better alternatives.

Well then we will just have to agree to disagree on this point--no, kids do not have an income but some day they will and life insurance on kids is CHEAP. Again, it is about protecting THEIR future-it has nothing to do with them contributing to the family as kids but as ADULTS. There are a lot of kids that develop something that makes them uninsurable before they reach adulthood. Also, YOU could develop something that jacks up their rates because as adults they then have to not only qualify on their medical history but YOUR medical history. We pay less then $10/month for our kids insurance-over time THEY will be able to add to that and have close to $1,000,000 in coverage if needed with no medical exams. THAT is why you buy life insurance for your kids.

What other alternative is there to life insurance that will give kids THAT kind of money at say age 25 if they die in a car accident leaving their new wife and young child???

 

[mjkacmom]

Y

Well then we will just have to agree to disagree on this point--no, kids do not have an income but some day they will and life insurance on kids is CHEAP. Again, it is about protecting THEIR future-it has nothing to do with them contributing to the family as kids but as ADULTS. There are a lot of kids that develop something that makes them uninsurable before they reach adulthood. Also, YOU could develop something that jacks up their rates because as adults they then have to not only qualify on their medical history but YOUR medical history. We pay less then $10/month for our kids insurance-over time THEY will be able to add to that and have close to $1,000,000 in coverage if needed with no medical exams. THAT is why you buy life insurance for your kids.

What other alternative is there to life insurance that will give kids THAT kind of money at say age 25 if they die in a car accident leaving their new wife and young child???

You can invest that $10 a month in a high risk mutual fund instead, and that way your child will have a nice chunk of money even if he doesn't die. My DH has been a CFP for the last 20 years, and he insists that whole life insurance is never the better investment.

 

[golfgal]

Y

You can invest that $10 a month in a high risk mutual fund instead, and that way your child will have a nice chunk of money even if he doesn't die. My DH has been a CFP for the last 20 years, and he insists that whole life insurance is never the better investment.

Even putting $10/month in a high risk mutual fund is NOT going to reach $1,000,000 by the time a child is early 20's or heck even 40. It isn't about the investment, it is about protecting your child's financial future. You can also do BOTH.

On top of which, a whole/variable life insurance policy does just that, invests in mutual funds, stocks, bonds, etc. PLUS you get the added benefit of the life insurance coverage.

 

[Chicago526]

I have to agree that life insurance for children can be a good idea. Not just to protect them from pre-existing illness exclusions, but it can also protect the parents should, God forbid, their child dies. Funerals cost money, and if the child had a protracted illness, there could be medical bills as well. Even if you have medical insurance, co-pays can really add up. I'm not saying to insure kids for an insane amount, but if you cank get four figure coverage for less than $10 a month, I don't see the harm in that.

 

[HelenePA]

I almost died in a car accident with dd#1 I was only 23 and pregnant with #2.. trust me dh would have needed life insurance to bury both of us.. we did not have 12k just lying around to put us under ground..

 

[grumpy28]

Thanks to everyone for all the advice, feedback and opinions!

Hubby and I had our in home physical this morning, so I guess now we just wait and see what the final quote will be!