We’ve been asked man, many times, “What’s the best life insurance for children?” when talking about life insurance with parents.
The truth is, it’s completely situational.
Some parents utilize it, some don’t. Some parents are even against it for a number of reasons. I’ve had a mother go into a rage just for bringing up the topic of life insurance on her child. Every person is different, not everyone has the same life insurance needs, so it’s important that you find the perfect insurance coverage for your loved ones. There are no “one plan fits all” policies. You’ll need to look at your specific preferences and find the plans that meet your needs. Not only that, but you’ll need to get quality insurance at an affordable rate.
It’s a very difficult topic to discuss, but it can be a very important one. You should always protect every major area of your life. If something tragic were to happen to you, you don’t want to be left with the awful reminder plus the additional financial strain.
So let’s take today’s discussion in the direction of life insurance on children, and talk about what the pro’s and con’s are of the arguments we’ve been a part of. Perhaps you need $100,000 worth of coverage or million dollar insurance. Whatever the need, we can help.
The Best Life Insurance For Children
First off, this can be an uncomfortable topic for some, as it infers a child’s death. Although it’s a very tough thing to even think about, it does happen, and can be something causing great trauma to a family.
I’m not scared to talk about the topic because I know from experience what can happen to a family when a child dies prematurely, and the setbacks it can create both in your personal life, and financial life. I’m sure every parent in the universe would believe they should never have to bury their own child. While I agree completely, a lot of parents have to deal with the opposite every day.
Here are the 3 most common objections we hear from parents:
- I’m not looking to get rich off my child’s death!
- I feel like it’s bad karma to insure my kid’s life!
- My child produces no income! What’s the point?
Let’s discuss them all.
I’m not looking to get rich off my child’s death! Nobody thinks you’re buying life insurance to become rich! It’s obvious you aren’t. It’s called insurance because it’s “just in case” a terrible event happens, not because you’re looking to make money. This would be like saying you would refuse to buy homeowner’s insurance because you’re not looking to get rich off your house if it burnt down. If your child predeceases you, there are expenses involved, and the life insurance is to pay for these expenses so you don’t have to worry about the bill while you grieve.
I feel like it’s bad karma to insure my kid’s life! This one is the most illogical of the bunch. Simply owning insurance does not increase the chances of your child’s death. Life insurance is to protect you from financial burden, nothing else. If your child was learning to ride a bike, and you denied them a helmet because you thought it was bad karma they would fall, are you doing anyone a service or disservice if they get hurt?
My child produces no income! What’s the point? This is actually a smart response. If life insurance is to pay debts or replace income, and a child has neither, why have life insurance? Well, as we mentioned, there are still expenses if a child dies. A funeral, a casket, possible medical bills, and other things, too. The best life insurance for a child is a policy which covers these. The financial side of death is not where your focus ought to be if something were to happen to your child.
Reasons Not To Buy Life Insurance On Your Children
I do, of course, recognize sometimes the best life insurance for children is none at all. So, what are the situations where life insurance is not necessary for your children?
- You have the cash.*
- Your child can get their own.
- It truly makes you uncomfortable.
If you have the cash, you may not need to consider life insurance for you children. Remember, the most important purpose for life insurance is to instantly create cash when needed, for a specific purpose. If you can earmark your dollars specifically for this purpose, or you have a surplus where you can draw from, perhaps you don’t need life insurance. *But, remember, insurance is still the best way to leverage your money. If you simply added your child as a rider on your own policy, the net cost would be drastically reduced.
If your child is old enough to work and earn income, even it’s fun money, then they ought to buy their own. This is perhaps an opinion of my own, but if they can take on the responsibility of working, a child can take on the responsibilities of spending wisely as well. Not only could you instill a learning opportunity here, but you can also put your mind at ease for not having to be the owner of your child’s life insurance policy.
If owning life insurance on your child really makes you uncomfortable, and you absolutely can’t wrap your head around the financial side of leveraging your money for an emergency such as this, then don’t buy life insurance. But at least have some sort of plan in place of what you might do if tragedy did strike. It’s like drafting a will. Absolutely nobody on earth would think it’s fun, but it’s a necessary step to planning for the future.
Key Thing To Remember About Children’s Life Insurance
If you’re really taking the time to consider all the possibilities of what life insurance can do, the best life insurance for children is the kind they won’t have to worry about later.
Here’s an example.
Bobby, at age 17, was diagnosed with cancer. Luckily, he was able to undergo experimental treatment which saved his life over the next 3 years. At age 25, he was married, had 2 children, a decent job, and was living the American Dream. When sitting with their financial planner, Bobby and his wife discovered they had a great need for life insurance to protect themselves and their children. Unfortunately, because of Bobby’s health history, he was not able to buy life insurance. Tragically, he was killed in a car wreck at 27 and left behind his wife and children without the income they needed.
Even though his death was completely unrelated to the disease he battled, he couldn’t find coverage when he needed it.
This could have been avoided if you, as a parent, had simply added your son on as a rider to your own policy at any age. As a child matures, most insurance companies will allow your child to turn the term rider into a policy of their own. In some cases, a company could even offer to multiply the coverage by 10 times!
How Much Does Life Insurance For Children Cost
While getting life insurance for your children can be an emotional strain, it isn’t going to cause a financial strain. It’s very cheap to get life insurance coverage for your children. Every insurance company is going to offer a child rider that you can add-on to your life insurance plan that you already have in place.
When you’re looking to add life insurance coverage for your child, you can typically do that with just a few dollars every month and it will give you the protection that you need. One of the advantages of having insurance on your children is that it’s extremely affordable. It’s a wise investment to add a few dollars to your premiums to get additional coverage on your kids.
If you have questions about the best life insurance for children of your own, contact us today and we’d be happy to walk you through your options. If you don’t think you need life insurance for your children, at least get a plan in place.
It can be difficult to find the perfect insurance plan for both you and your children, but it doesn’t have to be. Our agents can help connect you with the perfect insurance plan to give your family the protection that they need.
Nobody wants to think about anything tragic happen to either yourself or your loved ones, but not planning for the worst could leave your loved ones with a massive amount of debt and other bills. Don’t wait any longer to get the insurance coverage that your loved ones are going to need.
Additionally, if you’re looking to get more affordable coverage for yourself, our agents can help you do that. We can help you save hundreds of dollars on your life insurance plan. It’s important that your family has the insurance protection that they need, but your plan shouldn’t break your bank every month. Contact us today and we can save you money.