What are the reasons for life insurance on children?

[Tomfromtheshade]

I wasn't going to read every page of this thread, but you can be 100% certain that the child will get a standard non smoker rating. They can usually be re-underwritten at age 18 to get preferred or whatever you are aiming for. However, the benefit of getting a policy on a child (if for no other reason) is for the child. You can buy a $100,000 UL on a kid and the policy will be worth a fortune later in a life. They will never get the same low rate on that coverage if they were to buy it at the age in which people normally buy life insurance (early thirties). Look at it as a favor for your child. They will thank you for it, and their children will thank you for it.

 

[LRG]

Number one reason I see kids apps come across my desk is to protect insurability, and all of them have a GIPO or GIO feature.
Second reason is to protect parents if child dies.
Third is to begin the creation of an estate.
The most common way I see kids getting insured is via child riders........
Most childrens riders are automatically paid up on the owners death. So if the owner is over a certain rate, they will decline the child riders.

Just about all carriers require the parents and ALL siblings to be covered. Mom and Dad should have at least 2 times as much as the kids when dealing in nominal amounts. Max on kids, without specific need, is usually around 100K and all the kids better be insured equitably or no one gets insured. I can make a case for a 16 yr getting ready for college needing 100K and his 9 yr old sister only applying for 25K without a problem. But I can't insure one child out of a group.....sends all sorts of red flags up..........

Most childrens apps, which are 20pays (that I see anyway) have a great persistancy rate. And I think personally that they are great gifts to the young adult. Did it for all my kids.

 

[ProsperSBC]

To lock in insurability at the lowest possible cost in the persons life.