How does childrens life insurance work ???

Question

THANK YOU !

Answer 1

children do not need life insurance.

Put the money instead into a college savings program for them  or increase your own life insurance.

The only one who benefits is the life insurance salesman.

Find a new one.

Answer 2

It is outrageous for someone to tell you children don't need life insurance. They don't know your financial situation, many people live paycheck to paycheck and would be severely strained financially if a child died, spending a few dollars a month can make a big difference or those people that need it.

Answer 3

As a broker I have a child term rider on my own life policy, it provides $10,000 coverage for a total of $4.50 per month, no matter how many kids I have. My philosophy is that if I am going to be grieving for the loss of a child I don't need to add a financial problem on top of that.

Once the child reaches age 18 they can convert the tern rider to their own policy for up to 10 times the rider amount. This is usually only a good deal if the child/adult has a medical condition which would prevent obtaining a new policy.

Buying a cash value policy for a child usually does not make much sense.

I don't think any insurance is a rip off, I hope my house never burns down and it is very unlikely it ever will but I still have insurance to protect against that loss.

Answer 4

Same way as adults.  However, since a child is much, much less likely to die, it's more of a ripoff.  

I don't recommend life insurance for children.  You're better off investing in a mutual fund to pay for college.