Should I get life insurance for my children (13 yrs & 8 yrs. old) ???

Question

If yes, Do you know of any trusting life insurance companies that are affordable ?

Answer 1

The least expensive way is to add them to your policy as a rider, it will only cost a few dollars a month for about 25K in coverage.

Don't waste your money on cash value policies for your children. Instead invest for them or increase your life insurance.

Answer 2

The younger & healthier a person is - the more affordable life insurance will be.

I wrote $50K whole life policies on all my children as soon as they were born and it's costed me approx $9/month for each (boys are more!)

A paid-up at 65yo option is great - so at age 65 nobody needs to make the payments on the insurance anymore. Or a paid-up in 15 years option - so you only have to pay for the policy for 15 years and then it's all paid for!

This is a great gift you can someday GIVE them because when they're older life insurance is usually something they overlook and don't think about until they're either at an age where it's not affordable - or they're sick & possibly uninsurable.

Just be sure not to give it to them TOO young - or they'll not see the value and cash it in... make sure they're established and understand what you are giving them

I've recently seen that a very small funeral service and cremation cost over $10K!!!!  So the prices on final expenses isn't getting any lower... this is why I chose $50K - it'll be enough for final expenses and a little extra

Answer 3

Gerber has a life insurance policy for children.  I would do not like life insurance for children.  I will ask some questions below.

If something happens to a child can you cover funeral and other costs without being a hardship on your family and your other child? If yes, I would not buy. No, you probable need some but just purchase what you need.  

Insurance companies set there premiums to make money if you do not need it, you will probable be better off investing it for them.  Even plans with cash back you loose the interest you could have earned.

So buy just what you need and invest the rest.

Assuming $10 a month for insurance.  That is $120 dollars a year, consider putting that money automatically in an online savings account, it could be $650 for the 13 year old and $1800 for the 8 year old.  

Consider a 529 plan for college.  If something happened and they do not want to attend school, you can access this money.  This will earn a return.

Answer 4

No.  It's a waste of money.  Put the $25 a month into growth mutual funds, instead, or Roth IRA's for the kids.

Answer 5

I would say yes to a small amount of coverage.  Make sure that there is plenty of coverage on yourself as a first priority though as they depend on you.

There are two reasons that I say yes:

1. if your child were to die it would be devastating.  It would be difficult to work.  Life insurance proceeds would help to make sure that time off work is possible

2. many life insurance policies for children contain a guarantee to buy more in the future - regardless of health, lifestyle or occupation.  This can be a big deal in some circumstances