What are the reasons for life insurance on children?

Discussion in 'Life Insurance Forum' started by NHB_MMA, Oct 4, 2006.

  1. NHB_MMA
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    Beyond the fact that it's dirt cheap, what are the reasons for people to buy life insurance on children? Please give me some opinions you've heard, whether or not you agree with them (though I welcome comments and opinions).
     
  2. James
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    I would assume the same reasons why people buy W/L insurance now, a financial tool the has a DB attached to it. While I'm sure no one anticipates ones child death but it does happen. My brother lost his little girl at the age of 7 in a drowning accident. One of the saddest things I ever went through, helping my brother bury his child. I have a healthy W/L on my son, I surely hope I never have to cash it in and the main reason for it is a savings account for him when he retires. Now W/L, the C/V is outstanding if you have 60 years of growth.
     
  3. NHB_MMA
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    True. If you got those plans started that young, the cash value would really accumulate in later years.
     
  4. James
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    Better not say things like that, some will accuse you of acting as a financial rep, whatever that is!
     
  5. NHB_MMA
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    Yeah, I know you're a WL believer. Check out my next to last post on the thread about swinging my first big deal tell me what you think about my assessment of permanent insurance.
     
  6. MIBizInsurance
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    Trust me no one is going call you two finacial advisors :lol:


    Relax now, Just busting your chops guys.
     
  7. James
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    Dang nappit! Okay bust my chops, just leave my pork chops alone okay!
     
  8. MIBizInsurance
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    /smile

    Its all good.

    I have policies on my children not only for the above benefits but also to guarantee insurability in the future.

    Main reason is if that horrid event happened we could take a short leave from work and not worry about money. Last thing I'd want is to deal with money at that point.
     
  9. NHB_MMA
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    That is an excellent point. I never thought about the fact that someone might need to take an extended leave of absence from work and that additional death benefit would fund it.
     
  10. somarco
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    somarco That Medicare Guy

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    Admittedly I dont sell a lot of life insurance, much less on kids. But the primary reason (at least in my mind) for the coverage (beyond last expenses) is providing a financial cushion so the parents have time to grieve in dignity. I can think of nothing worse than having to bury your child, then know you must return to work the next day to pay the bills and keep your home.

    Over the last several years I have known a handful of people who have lost children. One woman took a leave from work and has not returned yet. Her daughter died almost 4 years ago in a car accident and the mom has had severe emotional issues since.

    Another friend was seriously injured ($1M+) in a car accident that took the life of her son. She is still recovering (physically & emotionally) 3 years later. They took the life insurance proceeds and established a scholarship fund in his memory.

    Her son graduated from high school just 2 months before the accident.

    People who say you should not buy life insurance on a child because there is no lost income to replace have never known anyone who has lost a child. The child may not have generated income, but the parents who were raising the child were. How much of THEIR income should be replaced to allow them time off to mourn the loss of their child?
     
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