Should you buy Life Insurance on your children?

There is no doubt that this is a touchy issue for any parent when approached from the wrong perspective.

You and I are used to buying life insurance with face amounts of $50,000.00, $100,000.00 and more on our spouses, for example. The idea of having your child insured for $50,000.00 seems simply ludicrous. Why in the world would someone even think about buying insurance on a child at those levels? It's enough to make one wonder what the parent is thinking and question even question their motives.

Life Insurance for children in small amounts

In general, (which means there are probably a few very specific exceptions) you simply don't need large amounts of insurance on your child and carrying a large amount, since it is inappropriate, would be enough to make any parent just a little uneasy. So, how about just using Life Insurance for one of its fundamental uses: protecting you against financial loss? That's just common sense.

A very unfortunate reality is that a significant number of children die every day, children that are seemingly healthy and their death comes not only as an extreme shock to the parents but as a complete surprise as well. As a parent, well, I just can't imagine how horrible it would be.

But, death as a horrible surprise is also a reality. It is not foolish to do a minimal amount of preparation, even allowing for the odds to be against it happening in your family, and then purchase enough coverage to take care of at least burial expenses for your child. Again, you don't need $100,000.00 but $10,000.00 or $20,000.00 is very much a practical thing to do.

Why should you buy
Life Insurance on a child?

I've experienced too often a parent sharing that they had no insurance on a child that died and had to cut costs as much as possible at the funeral home when making arrangements. Just when everything in their heart was screaming that they still wanted the absolute best for their child in death, just as they did in life.

I've known of parents resorting to cremation simply because they could not afford the $10,000 or more necessary for a couple of days viewing and all of the expenses that go along with a funeral. While there's nothing wrong with cremation and it is a quite viable alternative for just about anyone, not everyone is completely comfortable with the concept and "resorting" to it just because there is not enough money to do otherwise just makes the death of a child all the more horrible.

Life Insurance and Your Child

So, while your very spirit rebels as the idea of profiting from the death of a child when you contemplate buying a $100,000.00 whole life policy on your child, there is absolutely nothing wrong with searching around and finding permanent coverage with a much smaller face amount in order to insure against the expenses involved in the death of a child.

Postive Aspects of Insuring your Child

In spite of the doom and gloom of the above message there's thankfully an excellent expectancy that your child is going to live to a ripe old age and live a very happy life. That still means that they will benefit from having their own policy. Since whole life policies have a cost that is based on the age of the policyholder when the policy is purchased, children that receive a policy when they are young will benefit from that low price for the rest of their life! The policy just doesn't go up in price because they get older. That cost remains the same for the rest of their life.

I'd strongly suggest that you buy a policy for your child and the younger they are the better for them and you. Just pennies a day can give your child or grandchild a lifetime of protection and head start towards a financial foundation. Starting now is the best thing you can do for them.