do you think it's stupid that i get my 15 month old life insurance??

Answer 1

You will be doing one of the smartest things you can for your baby.

Insurance will never be cheaper, and if you get a term / perm or "jumping juvenile," you'll be paying a low low low premium until they're grown, then it will increase in price but provide permanent coverage. As someone else said, it guarantees their future insurability (in case an accident or illness makes them uninsurable), and has the added benefit of teaching financial security.

You can also buy a low cost Universal Life or Whole Life for them. It will be a little higher than 'jumping juvenile' but builds cash value by the time they're a teenager.

Rather than stupid, ... Congratulations on being so wise!

Answer 2

Yes, it is silly.

The other answers above really don't hold water.

Life insurance is not really best suited to 'building up cash value', even though that's what the insurance salesman says. If you want an investment, start a 529 or some other type of investment plan.

And getting life insurance now just in case you can't get it 14 years down the road is silly too. (If you were 50 looking ahead to 64, that might not be as silly, but we are talking about a baby.)

Any insurance is about making sure that a financial loss doesn't cause irremedial damage to your finances. So, for a working couple with or without children, it's best to have life insurance on both members. That's because having one of them die is a big financial loss (salary, etc.) to the other.

That's also why disability insurance is a good idea for working people.

That's also why medical insurance is a must for all members of the family including the children. If the kid gets sick and racks up medical bills, you don't want those bills to bankrupt the family.

That's why we have collision insurance on expensive new cards and tend not to have it on cheap older cars -- because replacing a brand new car suddenly might be a financial burden.

But life insurance for a baby? What financial contribution does the baby make to the family's finances?

I think sometimes people think that if you don't get life insurance for the child, it means you don't value them AS LOVED ONES. That's silly, it just means you recognize in the strictest financial sense that they are not yet financial contributors.

Answer 3

It's not stupid but it is unlikely that you need it. Child life insurance serves little purpose. If your child passed away (God forbid) what financial burden would you or your family suffer? Other than funeral costs where is your motivation to buy? In my opinion child life insurance is a big scam. As for the "maybe they will eventually be uninsurable" argument... That is your child's burden when they are independent and a family provider. Not yours. Think smart. Put the money in a college fund instead.

Also, thinking of life insurance as an investment with "cash value" is a poor choice. The fees are high and the investment options outside life insurance are much better. Agents make high commissions on "investment" life products and the products, as an investment, are poor.

Answer 4

It is only stupid if you get a so called cash value policy. Cash value serves no purpose except to make the insurance company and agent more money. You should get term insurance on yourself and invest the difference yourself. As far as for your 15 month old, a funeral can cost anywhere from 6000 dollars to 15000 dollars. That can be a major hardship for a family that is not prepared. So a simple10 or 20 thousand dollar rider that is attached to your policy is actually wise.

Answer 5

One very good reason to get life insurance when they are young is for guaranteed insurability. If the worst should happen and a child is diagnosed with something very bad (cancer or other life-threatening disease) they will not be insurable any more. But, if they already have a policy in place, they will be able to keep it as long as the premiums are paid. Many of these policies allow for gradual increases until the child is eighteen when they can assume the policy on their own.

It is a good piece of mind for many people. If you are inclined towards insurance in general, then this would probably be a good idea for you and your children.

Answer 6

Yes.

Want to know why? You likely won't keep it past the age of five - ony about 5% of people do. And the payout is very small, compared to what you'll be paying in the next 18 years. If you DO THE MATH, and include interest amortized on a monthly basis, you'll come out ahead of the game when the baby is 18 years old.

Also, if you have more than one child, the money you save can pay for ANY of their funerals, in the unlikely even that you should need it. And if you don't, you have money for the first semester of college.

Answer 7

No, not at all. My kids have all had life insurance policies since they were born. It's cheaper to get it now (ours is less than $100 a year) and if you get a Whole Life Policy, it will have cash value for them later on.

Answer 8

I think you have done something good for your child. Its a headstart and buying at young age also means locking the low premium to enjoy increasing coverage.

*If you had purchased a life policy where there's cash value, there's savings inside. You may withdraw the savings prefably when he/she turns 21 or later. Seek more advise from the consultant who is charged of the plan."

Its not stupid definitely.

Answer 9

yes, worry about getting yourself some life insurance or increasing your current policy. If you pass away, you need to make sure your 15th month old is take care of.

Answer 10

yes since if your child is born normal and healthy, then there's no point of buying life insurance for child. you should check if you have enough coverage.