Do you have Life Insurance on your child?

Kayla - posted on 04/27/2011 ( 210 moms have responded )

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People say you should have life insurance on your child, because the way the world is today you never know what may happen and prices are very high. I love my son and I hope and pray nothing will ever happen to him. But is life insurance really a good idea or not? Do you have life and insurance on your child?

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Firstly, I'd like to thank Kayla for asking this question. Secondly, it's been an interesting ride reading all these responses.



I haven't got insurance on my kids and had never thought of it before now because life insurance in Australia is mostly to replace lost income and pay funeral expenses, so mainly the adults in the household. If I were to take out a life insurance policy on my kids, as Jodi said earlier, it would end at age 21 without any ability to roll into anything. It's just dead money, no pun intended. Also, they will only pay for accidental death or serious injury/illness (like meningitis) with no cash value at any time... so no investment there either. The funeral cover would be advantageous though.



If we were to move to the US, I'd be all over life insurance for the boys, especially if there is 1) a cash value that can be accessed and 2) cap on premium cost (within reason of course). Life insurance policies in Australia are usually indexed, which means the premiums increase every year, so capped cost is very attractive. Also, given that those in the US have to pay blood money for healthcare, it is most likely a child would have contracted a serious illness to precipitate death and the cost of the medical care alone could bankrupt a family, forget about the funeral. Having that cost covered, along with a funeral makes sense to me... whereas in Australia we don't have to worry about medical costs because we have access to good healthcare for free. I'm also loving that a policy could be used like a college fund in the US, which has much higher tuition rates than we have here.



This is my order of priority for coverage, regardless of whether we lived here or in the US:

1) Life insurance for main wage earner

2) Life insurance for secondary wage earner

3) Income protection for main wage earner

4) Income protection of secondary wage earner

5) Mortgage protection insurance

6) Life/Funeral Insurance for kids

Jodi - posted on 04/30/2011

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" I simply think you are being somewhat unreasonable. The average person doesn't have $10,000 earmarked for funeral costs."



Excuse me? I am *unreasonable*? Does it occur to you that insurance is about playing the odds? The *odds* are that I will never have to face this situation in the first place. So I don't have $10,000 "earmarked" (as you put it) for funeral costs for goodness sake. I have something called savings, and the REASON I have savings is because I am in my 40s, so I have had YEARS to save, not because I am financially blessed. But I certainly don't "earmark" it for funeral costs. I do not see the SENSE in paying into an insurance policy for my children when the probability is that only the insurance company will benefit from it because of the low chance I would EVER have to use it.



Just for the record, insurance is different in Australia. It is basically called a funeral expenses policy, and it cannot convert into a college fund or whatever else we choose it to be. It is ONLY to cover funeral expenses. So, really, I'm gambling the odds. not "earmarking" anything. If that makes me an unreasonable person, then you are welcome to that opinion.

Novelet - posted on 04/28/2011

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Yes I have insurance on everyone in my family. Jodie & Jennifer, even though you may be able to come up with the money immediately for funural costs, if you invest that $10,000 in the right vehicle, it could yield you over half a million in 36 years. using that money to pay funural cost it would be gone. Also, you may not pay that much in policy premium for the life of the policy. Covering your family and children makes good financial sence because of what investing does, that I just mentioned. God forbid that something should happend to your child/ren, the financial risk would be towards the insurance company and not your financies. The best company out there is Primerica. They cover your entire family under one policy and you only pay one premium plus other benefits and features that comes with their policy. I have direct contact. If you need help getting with an agent from that company, please contact me.

Jodi - posted on 04/27/2011

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Karissa, I fail to see how it protects me if I have insurance on my children's lives......I have life insurance for me, and we have it for my husband, but tell me what the true financial benefit is on having it on your children?

This conversation has been closed to further comments

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Amber - posted on 05/03/2011

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Hmmm...I really don't know. We discussed it when we set up my policy, but I don't know if Chad actually added him on or not. We have okay coverage on me, as I'm a SAHM and not bringing in income at the moment. But we have substantial coverage on dad that would pay off all of our bills and leave us with more than his yearly salary.

We have the money to pay for a funeral without a problem. It's not really necessary for us, but if it were only a couple hundred dollars a year it might be worth it if anything ever were to happen.

We would already be devastated by the loss of our child; I wouldn't want to withdraw $10,000 from my savings on top of that. It wouldn't break us and we'd still have savings, but it would be an added blow.

Many couples cannot make it through the loss of a child; adding financial pressures, for those who don't have the money, wouldn't make it any easier.

I think I'm straddling the fence. And I'm going to have to ask if we added him now....lol I should probably know huh?

Chrissy - posted on 05/03/2011

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I would like to apologize to the mommies in this thread, especially to Kayla. I did not intend to become involved in a "bashing" as some have called it.

The truth is I believe this is a very emotional topic. Feelings on the subject vary. I absolutely believe it is the individual family's prerogative to do what they feel is best for them. If you have read my posts you know how I feel about the topic and the steps my family has taken.

Kayla, the best thing you could do is begin shopping. Make a list of some local recommended, well-respected experts (financial planners, insurance agents, investment representative) in the business. These professionals are usually very willing to come to your home (for free) to talk with you regarding your needs. We talked to several before we found someone we liked and felt we could trust. The truth is there are many options, and you need to find the one that fits you best. With all due respect I do not think you will find the answer here; maybe some leads, but not the answer.

Tanisha - posted on 05/03/2011

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I like the saying"I'd rather have it and not need it than to not have it and need" If you are financially set and can cover everything even when the child is an adult then there would be no need for it, that policy does not go away when they turn 21, I haven't gotten my kids one yet but I will soon and when they are old enough they will take over the responsibility of keeping up with it just one of my financial lessons for them. Security is never a bad thing you just never know what may happen.

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@ Amber Bennett, I'm so sorry for your loss. I can't imagine what you're going through and my heart goes out to you.

Krystle - posted on 05/03/2011

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I HAVE BEEN WONDERING ABOUT THIS MYSELF. I GET THE "GERBER LIFE INSURANCE" OFFERS IN THE MAIL AND WOULD LOVE TO ACCEPT. I THINK IT WOULD BE WONDERFUL FOR HER TO HAVE THIS MONEY WHEN SHE TURNS 18 FOR A CAR, COLLEGE, WHICHEVER. WHAT DO YALL THINK? DOES ANYONE HAVE GERBER LIFE INSURANCE? IF SO, WHAT DO YOU THINK OF IT? THANK YOU =)

Elizabeth [ Betty ] - posted on 05/03/2011

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Buying life insurance for an infant was once very practical- infant mortality was high and most families could hardly make ends meet - sinsurance salesman were desperate too, sp they made weekly rounds to pick up 10 cents . He would make a notation in a booklet that you kept and it was more feasible than writing out a check, - no one had money in the bank- and so in some cases in was needed - instead of the insurance, have a special account for the child - and save a set amount each week or month money that you can draw on in case of emergency - and fight for universal health care like France and Canada has -

April - posted on 05/03/2011

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We have an insurance policy on our child that is also a savings plan. You should look into that. I believe it is with Farmer's Insurance.

Steph - posted on 05/03/2011

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BwttwrPost a reply! Better to save for education. Odd s better child will need schooling before funeral.

Karen - posted on 05/03/2011

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Yes, there has been a life insurance policy for my daughter as soon as she had a social security number (required to purchase the policy if I remember correctly, this was over 13 years ago).

In addition to funeral expenses, the policy she had allows her to increase the amount at a couple of points later in her life. I find this important to ensure that she will have life insurance later in life in the event that something happens to influence her insurability (life threatening illness, accident that leaves her disabled, etc).

This was the same reason my parents had insurance for me when I was a child. And I still have that same policy today and have increased it twice as my personal needs have changed over the years.

Jackie - posted on 05/03/2011

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it's a good idea to have life insurance, you can get riders insurance for children on a parents policy, ask any one (them) insurance companies, American National been around for a while and that's who l have.

Christi - posted on 05/03/2011

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My husband and I have life insurance through northwestern mutual. My daughters policy is only $14.00 a month. Not bad to know that if we had to, we could pay for a funeral. Godd luck in your decision making. I always find that if I sit down and write out all the pros and cons I can then make. A better choice for me and my family.

Amber - posted on 05/03/2011

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Yes, I elected to cover my children after my first son was born. I work for the county government and it was an option that only costs a few dollars a month. I have had three children and had all of them covered on that policy (and it is still only a few dollars a month). Sad to say that I am now cashing in on that policy. Three weeks ago my 5 month old son passed away a few hours after having open heart surgery. We owe thousands of dollars in medical bills (two years worth of deductibles and out-of-pocket expenses before health insurance paid 100%). That on top of funeral expenses and we will still owe after collecting his $10,000 life insurance plan. This is my worst nightmare coming true but glad I chose to have my children covered.

Charlie - posted on 05/03/2011

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you either get it or you don't its that simple there isn't an evil reasoning behind any of it .

Charlie - posted on 05/03/2011

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It's sick to have life insurance on your kids ? I am hoping that is a narrow minded joke .



Way to totally warp the reasoning behind it , no one expects their child to die the death of ANYONE in your family is hard and expensive , no one wants to have to deal with being broke on top of the grief you feel for a loss of life .....seriously some people in this thread really need to think outside the square and empathize with people from all walks of life in all situations and stop trying to fit everyone in your notion of "ideal" .

Shanna - posted on 05/03/2011

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I suppose it matters most why one is purchasing the insurance...if I dont expect said person to be dying over anytime soon there is no investment potential in term life so while it is much cheaper at the end of whatever "term" one is left with nothing. I would much rather invest in something that has the potential to generate money.

Kimberly - posted on 05/03/2011

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One should understand that, like car insurance, the purpose of life insurance is to replace in case of an accident, in this case to replace lost income. Since children, in most cases do not generate an income, life insurance is generally not necessary. However, if you and your family are not in a secure financial position to meet the expenses of, God forbid, the death of a child, it may be a wise idea to purchase the minimum life insurance necessary to meet those expenses. It is advisable to only purchase term life insurance as it is the most cost effective for the purpose it serves. For more information visit www.DaveRamsey.com simple straight forward financial information, no gimics, no get rich schemes ... recommend ZanderIns.com ... Hope this helps

Shanna - posted on 05/03/2011

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Before people begin posting and giving incorrect information why not research the topic...as I am going through this board I find it amazing how many people are willing to stand behind a statement as if it is fact even though it is blatantly incorrect. Research...it's wonderful.

Shanna - posted on 05/03/2011

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That simply stated is incorrect. Whole life insurance is an investment...unless strictly speaking you are speaking of term life insurance.

Shanna - posted on 05/03/2011

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Wow...such interesting responses...some downright rude even...

With that said yes, I have taken out whole life insurance on my children because it is an investment. I didnt simply take it out in the event that something were to happen to them, but for the investment potential as well. I think it would make a wondeful gift when they are 25+ and have their own families in addition to providing them with a safety net as young adults/parents (way way way way) down the line.

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No. The point of insurance is to maintain your lifestyle and to be able to pay funeral expenses of the decedent. Children are not wage earners. This is just a ploy for your money appealing to your heartstrings

Denise - posted on 05/03/2011

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We have been told by several people that the rule for life insurance is primarily to replace income. so really you do not need life insurance on a child. We decided not to purchase it after that. Some of our friends did purchase a small policy, which would basically cover the cost of a funeral should something happen, but is is only a couple of thousand dollars.

[deleted account]

Yes, I get that your comment is directed at people with life insurance on their children. I am one of those people. And I see you're totally avoiding any responsibility in possibly having said something offensive. Moving on....

Jennifer - posted on 05/03/2011

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Well my comment is directed at people having life insurance on their children - that's just sick no matter what your financial situation is! Perhaps you should get better financial advice!

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Jennifer, fine, you think that savings is the answer and you don't agree with life insurance on a child. That's your opinion and you're entitled to it. We only spend $120 a year on our son's policy. You said in your post above, that, " It is not for you to make some cash if your child dies!" and to me, that's an uncalled for comment. It's rude and disrespectful. It's also sad that you would stoop so low and assume that it has anything to do with "making cash". You don't agree with my financial decisions? Fine. I could care less. I'm addressing you specifically on the heartless comment you made about it being about profit. That's just SICK.

Marie - posted on 05/03/2011

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Here is the other thing to consider, some funeral homes when you bury a parent they can also throw a clause in so if something happens to your kid it's covered, don't ask me how, but that's what the funeral home that buried my dad said. I might add this whole insurance thing is just a bet anyhow, some of us choose to be more covered than others and others sorry it's a financial option, we don't have all that extra cash laying around, personally I also think it's kinda creepy to carry life insruanc eon somebody else, that' sjust me though

Jodi - posted on 05/03/2011

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"Traci, sounds like you have a few $100,000+ sitting in your bank account. That is not most peoples position, most people dont have money to bury a loved one in the event of an untimely death."

It doesn't cost a $100K+ to bury a child. Unless it's going to be in a gold casket. Exaggerate much?

Or are you confused? This discussion is about insurance on CHILDREN not the parents.

Mary - posted on 05/03/2011

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I 've had life insurance for both of my children since day 1 of their lives. I am a single mother on a very tight budget but Gerber Life has made it possible for me just "incase" something happens.

Jennifer - posted on 05/03/2011

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Whoever asked me how I would consider to pay for the funeral of one of my children, here is the answer - SAVINGS! And yes I understand that we are in a financial situation that many people are not. But you still never take out life insurance on your children. Even if you think you are going to need it, over the life of the policy it is a very poor financial decision! For that matter, never buy whole life, only term on you or your spouse!

Marie - posted on 05/03/2011

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I wouldn't, might be good to get on yourself/husband life insruance, but considering what it would be used for I'd worry more about a loss of income than anything else, obviously the kid is not going to be generating income for a long time and only for his/herself.

Stifler's - posted on 05/03/2011

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I doubt you'd have any cash left over after funeral expenses... same with when your spouse dies and you get their life insurance. You don't actually *profit*, the money replaces years of lost income in a lump sum instead of over the years. It pays for the rest of your home loan/mortgage and food until the kids are old enough for you to go to work and for bills.

[deleted account]

Jennifer, really, it's not about "making some cash" if my child dies. What an assumption! My husband is our sole income. Aside from most of us not having cash on hand set aside to pay for a funeral (for anyone's funeral...not just a child's), if the worst happened and our son died, do you really think my husband would be going back to work after a day? 3 days? A week? Two weeks? If it's acceptable to have life insurance on my husband, so that if HE died, my son and I would be ok financially until I found work, then why is it not also acceptable that we have a policy (not as large as what's on my husband) on our son, so that my husband could take time off from work to grieve? Do you really think we'd get that check and go buy new cars or splurge on expensive dinners? The thought of this whole topic makes my stomach turn. The thought of ever having a reason to get such a check makes me want to curl up in a ball. BUT, I'm a realist. And I know that if anything ever happened to our son, we would need time to grieve, and having that check would allow us to do so. FMLA will protect my husband's job. A life insurance check will protect everything else.



A few other people, as well as myself, said earlier that this is a personal choice and I just wish people would stop assuming that having life insurance on a child has anything to do with profiting off of the most horrible thing a parent could ever go through. Really. What a callous and heartless way to enter a discussion.



Edited to add a few other thoughts.

Shannon - posted on 05/03/2011

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I think it is a good idea. It was sad for me to think about getting it cause I may have to use it for her. But if something does happen then you won't have to spend any money on the funeral and if you got enough life insurance the rest can be used to pay off old debts or such, IF they are adults that is. My mom has it on me and my brother, but my Aunt pays for it.

Jennifer - posted on 05/03/2011

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You have got to be kidding me! Life insurance is for you or your spouse to have on each other. Then in the case something happens to one of you, you can still afford to take care of your child! n It is not for you to make some cash if your child dies!

Fanny - posted on 05/03/2011

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I started.paying for life insurance for my babies.... Than hated the idea so cancelled

Tiffany - posted on 05/03/2011

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Traci, sounds like you have a few $100,000+ sitting in your bank account. That is not most peoples position, most people dont have money to bury a loved one in the event of an untimely death. And if that is not the case you FA lied to you.

Tiffany - posted on 05/03/2011

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You certainly do need life insurance on everyone in your household children too. Unfortunate things happen to children all the time, and if something were to happen to one of my kids the last thing I would want to have to deal with is asking people for money to take care of MY CHILDS funeral expenses. So, how much life insurance do you really need to protect your family? A good rule of thumb is five to ten times your annual salary, however you should take into account your lifestyle, the assets you own and the debts you owe. Need an example?



We got John and Jane Doe both age 30 who have three kids ages 1, 3, & 5. John is the bread winner in the family; Jane is a stay at home Mother (or works part time). They have a $100,000 mortgage and another let’s say $30,000 in debts (car loans, student loans, credit cards). John dies in a car accident on his way to work one Tuesday morning. What is Jane going to do with a $10,000 life insurance policy? Please note that $10,000 is the average cost of a funeral these days, you can cremate John to save some money but still, how far will that take you with 3 kids and $130,000 in debt. John is gone, but those bills keep coming, and the light, water, gas and mortgage companies don’t care what you are going thru. They what their money!!



So now you might say “Jane better get off her butt and get a job”! But let’s be realistic here, Jane just lost her husband, her life companion, her high school sweet heart, the man she thought she was going to grow old with GONE at age 30! In today’s economy it may not even be feasible for Jane to go out and find a decent paying job right away. Remember she has three kids, how expensive is quality child care? VERY!! That mortgage, car payment and other reoccurring bills didn’t go with John.



Let’s flip the script, let’s say something happened to Jane. Yes Jane needs life insurance too; she saves the family a lot of money by being home to care for the kids. John still has to work (how much time do you get off to grieve a spouse) those bills didn’t leave with Jane. John has to now pay someone to come in and take care of his kids, that is not in his monthly budget. John just lost his wife, his life companion, his high school sweet heart, the woman she thought he was going to grow old with GONE at age 30! Where is John’s head to be at work? His place is at home with the kids who are going to need his constant comfort.



So there you go folks… That’s why you need life insurance; also known as INCOME PROTECTION. That why you really need it, to replace your income in the event of an untimely death.



My husband and I are in the financial services business, and we sell life insurance along with other financial products that help families become properly protected, debt free and financially independent. Have any other questions? Feel free to message me, I don’t know everything but I will find you an answer. Have a great evening!!!

Amanda - posted on 05/03/2011

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I got life insurance on my daughter right after she was born. I got it through Gerber. I pay $14.20 a month for $20,000 in life insurance. And what I like about it is the fact that it's cheap and alsi it will never go up. So when she grows up and is on her own she can continue to have her life insurance at the low price that I locked her into. Snd she will aoso have the option to cash it in if she would perfer. I consider it an investment in her future. You might wabt to check it out,

Mary - posted on 05/03/2011

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Wills are another topic. Suffice it to say, EVERY PARENT SHOULD HAVE A WILL IN PLACE!!!!

Marcia - posted on 05/03/2011

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I got Life/ Funeral Insurance 2 weeks ago, and doing my will now. I new it had to be done as I didn't want to leave my family without any finance and legal rights with my children.
However on the phone i got all teary thinking 1 of us might not be around. Peace of mind now.

Mary - posted on 05/03/2011

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Let's hope that Kayla has read enough replies to her question and has not become more confused after all that has been said.



Really too bad about the bashing. One would hope for more compassion on such a sensitive topic (i.e,, NOT calling people foolish for following the path they believe in).



The best thing that has been said is that it is a very personal decision that has to be made after doing a lot of research.



Good luck, Kayla!

Angela - posted on 05/03/2011

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We are a one income family supporting 5 mouths - sadly with economics being the way they are, we cant even afford insurance on ourselves :(
We have instead, done the rounds of the family asking various questions "if anything were to happen, would you...?" and surprisingly the support has been great!
I know my kids would be provided for if anything were to happen to me!
As for funeral expenses - having worked in a funeral home, what alot of people dont realise is that for small children, funerals are very little charge if any! Most funeral homes do this as a way of assisting to console grieving parents rather than adding to the burden.
@ a quote of $100 per mth JUST for insurance on myself (no additional cover for family) I'd rather put that asside in high interest account, or then again - spend it on enjoying every minute of the time I have with my family!
Safety - safety - safety! dont do things that put yourself and others at risk!!

Patricia - posted on 05/03/2011

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It is a smart thing to do. Life is unpredictable and it is best to be prepared.

Darleen - posted on 05/03/2011

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I believe you should think of having life insurance on yourself. I was thinking when my son was born, to put life insurance on his life, but I thought better of it & now I'm getting life insurance on myself instead. That way you know your child is taken care of financially if you suddenly go.

Stephanie Alexis - posted on 05/03/2011

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Hi Kayla,

Just recently I signed up for a lifetime insurance policy of the Generali Group for my daughter. The policy promises to not only the insurance in case of death, but to give a certain amount of money once she turns 9. This guaranteed benefit is for life, so aside from the money that will be given in case something bad happens to Holly (knock on wood a bajillion times), she gets an amount every other year to pay for her daily expenses, her tuition in school, etc.

This, I think, is a really good investment because the company will support her in life and in death. The insurance package I got is expensive though, given these benefits, so you should check with your choice of insurance company if they have insurance packages like these that are affordable and reasonable for you.

Katheryn - posted on 05/03/2011

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I've been looking into a child rider on my own life insurance policy. This would cover all children, including those I have in the future without having to have a policy for each child or additional monthly premiums for each child. I am wanting this just to cover funeral/burial costs if something were to happen (hate even thinking about something happening.)

Sasha-lynn - posted on 05/03/2011

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Look into Gerber Life Insurance. They offer the grow-up plan, a college plan and 2 other plans for adults depending on their age.

Michaela - posted on 05/03/2011

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Yes! It's a great idea, and most life insurances for children convert into savings plans. The can draw on the money you have been putting in when they are a set age, (18-25). If something tragic does happed (let's hope not) you will have money to deal with the funeral costs, as well as thearpy for the whole family. I have a policy on both of our children, and it is pricy, 100/month per child, but by the time they are 21 it will be well over 200 thousand! Go for it if you can.

[deleted account]

I agree, it's a personal choice. Just because I have it on my son (as well as my husband and myself) doesn't mean that I think anyone is "wrong" for not having it on their children. Everyone sees having life insurance on children from a different perspective and....that's ok! It's also a morbid and horrible thing to think about, our children dying. In the same way that we all react differently to death, we also all react differently to the prospect of being prepared for it. I mean, I choked up a few times when reading about the options for our son, choosing which we felt were best and then signing the dotted line. But for me, it helps me to sleep at night, being prepared for the worst, but hoping for the best. I would never begrudge another parent for seeing it differently.

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