Is it common practice for people to carry life insurance on their children and grandchildren?

Question

naming themselves as the beneficiary?

Answer 1

It's common for the POLICYOWNER to name themselves as beneficiary, if they aren't the insured person. That's because they're likely the ones to end up paying the funeral, if the insured person is a minor.

If the insured person is NOT a minor, the policyowner must get their permission in writing, on the application, before the insurance company will give them a policy.

Life insurance, in general, is a bad deal when you're talking about insuring children. You're much better off putting $20 a month into a cookie jar. But people do it anyway!!

Answer 2

I have policies for all three of my kids. Never intending to have to use them in a tragic situation of course. However, the policies do have riders added that allows them to get up to an additional amount of insurance after the age of 21 or 25? This way, no matter what happens between now and then, they will have some type of insurance. Friend of mine got cancer at the age of 28, she can't get insurance at all, and even though has been in remission for several years, she is now married, with two children, and can't get life insurance.

The policies are also set up so that by the time they reach a certain age, they will have accumulated a certain amount of money which the kids can either use (downpayment for house, etc., ) or just allow it to continue to grow.

No one wants to think about the reason WHY people get life insurance, but when someone dies, there is a huge expense, and someone has to pay for it. That's what the insurance is there for.

Answer 3

Yes. nad things can happen to children. My good friend had a 17 year old son die in a car accident and then some years later had a grandchild die shortly after birth. 20 years ago when his son died there was no life insurance - the ex-wife wanted it handle a certain way and it ended up being over 10,000.

Many policies for children are very inexpensive and can provide not only the death benefit, but future insurability regardless of health.

Answer 4

I'm not a believer in carrying life insurance on young children. Life insurance is intended to pay for burial expenses if there would possibly be no other way to pay for it. Statistically, most young children don't die (thank God!), so it really doesn't make much financial sense.

If you're looking to do something good for your children or grandchildren, open a 529 college savings account for them. The money is much better placed there than at some insurance company who is looking to put their name on another stadium.

Answer 5

Hey Junebug, in answering I know it's common practice to take out insurance on your loved ones. We hope not to use it for burial purposes but that's what insurance is all about.
Later on in life, that same insurance policy will act as a savings on the premiums you've paid through the years.
I suggest calling an insurance company and asking about policies and rates. Good luck.

Answer 6

Yes! I believe this is a very important thing to do. No one is promised tomorrow. When I was 17, I was diagnosed with cancer. I met many children with terminal illnesses...even babies. I can't EVER get any life insurance because of the type of cancer I had. I thought that after 5 years of being in remission that I could, but NEVER. Also, several months ago I had a cousin die in an automobile accident. Unfortunately, bad things do happen to children.

Answer 7

I highly recommend coverage on children. Sad to say children do die. If you can't pay 5k or 7k out of pocket for final expense. Just add a simple and inexpensive Child Rider to your policy. It covers the children for a small amount and is convertable to a larger policy as they get older and have needs of their own. Make sure the policy is convertable. Do so while they are young and good health.

Answer 8

I doubt many Christians will have faith that they meet the two situations. working example, i don't fall into the latter classification. yet... putting myself in that approach.. if I DID think of all non-Christians are going to hell.... i could nonetheless p.c. to ward off the paraplegic in spite of the undeniable fact that.... you notice, the different toddler is an grownup.. so they are able to make their very own judgements. If a million talk led them to loose all faith... then there is a minimum of as lots threat that a single talk could fix all faith. yet regardless.. they in all threat have been already doubting their ideals already, if a million talk can do lots. None the less.. their existence isn't over.. so there is often of undertaking that they could convert back. there isn't the same point of coverage or desire while it includes the paraplegic, for the reason that on your situation that they had stay that way for existence. it incredibly is that if i presumed in Sola Fide and that each physique non-Christians are going to hell.

Answer 9

Most folks who I work with these days prefer to just add a simple and inexpensive Children's Rider to their policy. It covers the kids for a small amount and is convertable to a bigger policy as they get older and have needs of their own.

Answer 10

i agree, it seems kind of , well i don't know if macabre is the right word, but you know. i was surprised how many employees here carry it on their kids- one thing, is the burial cost, as mentioned, but we have an insurance company come in and they are very good salesmen that is one reason why- they convince people they need the insurance