The TV insurance pros tell you not to insure children?

Question

They tell you that kids dont need insurance because you dont rely on them for income. Do you agree with this? I have heard several people including Suze Orman say this, but I dissagree.

Sure, you dont need $250k on your toddler, unless they are on stage somewhere, but dont you need a policy of some type? Even if its a small child rider on your own. Yes, insurance is to cover financial matters is a loved one passes, so doesnt the unfortunate need of burrying a child deserve the same consideration?

I generally like folks like Suze Orman, but I dont like it when they make blanket statements for all & say there are no exceptions. Because many people would be financially devistated to have to come up with funeral expenses for a child, or anyone else.

It may be hard for her & some others to believe, but some people dont have an extra $10k to burry a child. Its not like you get a child discount like at the movies.

Answer 1

Getting a life insurance on a child depends on whether parents want it or not. If a child does die someday, can the family afford it? If not, then they should buy a small policy or add a child rider to their policy of $10,000.

Most families usually don't get life insurance on their kids because they don't want to make profits off the child's death, the chance of anything happening to a child is very low because people are suppose to keep an eye on them at all times (except when they become teenagers, good luck on trying to figure out what they do), the family probably has enough money to bury a child.

If I had a child, I rather start a 529 Plan than buying life insurance on him or her.

Answer 2

I agree with several of these answers. There are 2 main reasons to insure a child. 1 - if something happens, you need funeral expenses. 2 - on some policies it can ensure future insurability and in the event they have a health problem later down the road they won't have to worry.

I've known several families who have been thru this - one where a child dies of sids and the other where a child was killed in an auto accident. You never want to think that is going to happen, but it does. For instance I know of a policy that is $35.00 a year for $10000. coverage. Thats not a whole lot of money for a little piece of mind.

Answer 3

I chose the Gerber Grow-Up plan for my son. When he turns 18, the policy can be turned over to him and then he can continue making the payments (which he can up the coverage to $100,000 whole life at the age of 28). I did this so he would some day have a policy that had quite a bit of equity in, as he will have his own family someday and the policy can still be used then. The amount if insurance until he is 18 is $10,000, bu then he can up the amounts and the price is really reasonable. I just thought it would be a good future investment for him to have when he is older with kids of his own.

Answer 4

Children are EMOTIONAL investments, not monetary ones. Financially, the most you have to lose from a child's death, is the cost of funeral & burial - maybe $5,000.

Because of that, I STRONGLY agree with the tv gurus.

Insurance companies LOVE marketing out to children, because 1. children rarely die 2. parents rarely keep the policies in effect which means 3. it's enormously profitable.

You're better off putting $10 a week in a cookie jar, to pay for the funeral. NOT only will you have more money in the end, but when your child doesn't die, you'll have a LOT more money in the end. Not only that, but if you have MULTIPLE children, you don't need to buy multiple cookie jars! Odds are, you won't have to empty it for ANY of them, but if you do, it will be there to cover WHICHEVER needs it.

Answer 5

They say that because life insurance on kids is a bad investment. It carries a very high profit and commission rate. If you are concerned about your child dying, and how you will pay the expense, then start a monthly deduction plan now. Deduct $100 a month every month and put it into a savings account for the child. once you have accumulated sufficient funds, stop contributing.
then use the money for college, when the child turns 18.

Answer 6

The real reason for someone to get life insurance on a child is Future Insurability. This means that if a child gets diagnosed with juvenile diabetes after starting the policy they won't have to worry about trying to get insurance down the road when they need it. Get a small whole life policy for the child and you'll find that because your starting the policy at such a young age, it will be pretty cheap.

Answer 7

Hi, your totally right about that, you and I have same view, Suze is so wrong, they don't understand all type of insurance forsure, if you look to MassMutual insurance 10 payments whole life, you will know you should buy this type of insurance for your kids or not, take your time to understand this program. and buy for you kid ASAP.
Let say, kids at 1 year of age, you can use $200 or $300 a month to get half million of insurance, you just need to pay for 10 years, that all, just 10 years, the policy will cover kids until 100 years, and also you will have enough cash value to pay kids college by the time they finish school, account owner is your, you control the account money, unlike 529 plan, when kid at 18, you need to transfer account to kids name, what if kids not going to school?
after you spend for college, you will still have cash flow every year, you can use new cash flow to make down payment for kids buy home, or you can use this money for kids retire use, you name it , use every where you want, as long as you are not withdraw more than 90% of your cash value you don't need to worry about TAX, also don't need to concern about getting the financial aid, not much to do with stock market, also account have **** $250,000 insurance on it. plus the insurance policy will keep increase each and every year, by the time kids going to retire, already become couple million coverage, kids never need to buy any kinds of life insurance again. you just need it 10 years, benefit will forever, what else you can do, when your kids marriage and get new baby, your kids can buy the same type of insurance again useing from your cash value, so that ways, you can cover for generation by generation.
a lot of people say, buy term life, as you know people not easy to die, most of the insurance company want to sell this type of insurance, they make money, you lose, another thing, by the time you getting old and you still need to cover you house or busniess, you want to buy term life again? do you know how much will cost you even you have a good health.
So what wrong with buy whole life for 10 years?

Answer 8

So unhappy. You frustrate me with the form you have reported it, yet to three extent I consider what you have reported. i'm for the main area professional-existence. yet i do no longer end being concerned concerning the toddler as quickly because it is born. authentic, no delivery administration is one hundred% powerful. yet there could nevertheless be lots much less undesirable toddlers interior the international if human beings could attempt utilising it. there are lots of varieties available! i can not do prescription delivery administration because of the fact they mess with my thoughts too lots. i can not do condoms because of the fact of allergic reactions. yet i will guard spermicide movies. - there is a few thing for terribly almost every person! between the failings that bugs me maximum is to take heed to somebody say that they do no longer use contraceptives because of the fact they are in a position to't arise with the money for them. - Do they think of raising somewhat one, getting an abortion, or curing an STD could be from now on much less costly? For now, i could extremely spend a dollar each and every time i opt to have intercourse than convey somewhat one into the international that i'm no longer waiting for. approximately your adoption and fostering remark ... i can not consider your announcing "if i will do it so can virtually every person else." i comprehend lots of those that does no longer make in wonderful condition foster or adoptive dad and mom - whether they are solid dad and mom to their very own youngsters. i could extremely see youngsters in a collection abode than with a number of the losers i comprehend. for my area, i admire the assumption of adopting or fostering a new child. and that i did check out it a number of months in the past. yet a large style of the obtainable youngsters had issues that i'm no longer waiting to tackle. I even have helped adequate families who have been down on their success to have an concept what i could be getting myself into. - i opt to do it some day. and that i'm hoping that any one who needs greater advantageous than 2 youngsters will heavily evaluate taking in a new child who already desires a house instead of growing to be a clean one. yet for now, i comprehend this is not for me so i can not do it.

Answer 9

None of these "answers" covers parents who have borrowed many thousands of dollars to sent a child to college. That is a no-brainer.