Does A 1 Year Old Child Needs Life Insurance?
Posted October 20, 2009 – 4:51 am in: term life insuranceI f he needs life insurance, which is a better pick, a term life insurance or a participating whole life insurance since premiums are very cheap and he can have her plans paid up in a short period of time using self liquidating option?
Tags: Child, Does, Insurance, Life, Needs, Year
17 Comments
If I remember right, you are the same guy who asked about the Guardian whole life policy. Go talk to an independent agent as well. I’m not saying Guardian stinks, but if that guy or gal has an obligation to sell Guardian even if they have access to other companies this is an obviously biased position.
Mbrcatz is right about juev policies that are guaranteed issue. I just replaced one that was 25 years old, decreasing whole life (the owner never heard the word “decreasing” when she bought it), and there is only $800 of cash value.
There a number of good, fully underwritten options that will allow you to take out 25k to 100k. There are good options besides just whole life and term. Talk to a local agent who has no obligations other than to serve you. It’s not the 70’s, why is the agent only talking about term or whole life?
As far as needing the coverage? No, he doesn’t need the coverage, but then again, my oldest brother wasn’t diagnosed with his seizures and retardation until he was 2. Your kid’s cost of mortality is incredibly low right now, so it’s a good time to at least think about it.
Absolutely! I can’t believe anyone would tell you no on this question. With the risk of sounding like a fool, which would you prefer, crying all the way to the cemetary…which would be headstoneless I may add, or crying all the way to the bank. Call me insensitive, but in a situation like that, I would imagine the last thing you would want to deal with are bill collectors and proper burial arrangements that you can not afford. Whole life insurance is the way to go.
There are two primary reasons to buy a child life insurance. The first one is that God forbid something happen to them, you do not want a jar in the corner store asking for donations to help pay their funeral costs. The second is that these policies usually protect their future insurance needs. If your child were to develop an illness later in life that made them uninsurable, they may still have a need for coverage due to a home purchase or a family of their own. If you have bought a policy already, they will have some coverage.
Most of these policies are paid in full withing 10 to 20 years and include something called “Guaranteed Insurability Option”. This means they can purchase specific amounts of coverage later in life with no concerns as to their health.
The very most important thing I can tell you though, is to make sure you have the correct coverage first. It does no good to purchase life insurance for a child unless you have coverage for yourself. It does no good for them to have a policy if something happens to you and no one is paying for it.
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Yes! The last thing anyone wants to think about with their brand new baby is life insurance. I neglected to get life insurance for my daughter, and when she was 9 months old she was diagnosed with a terminal kidney disease.
She will live to her 40’s maybe even a little past that time, but no one will ever give her a life insurance policy because of her diagnosis, she’s eight now.
So please, get your child a whole-life insurance policy.
Several answers here are partially correct.
If YOU have sufficient savings to pay for a funeral for your child, then the child does not need life Ins.
Of course, something could happen that could affect your child’s future insurability. (Type 2 diabetes?)
Insuraing your child should be a very distant second to having enough life insurance on YOURSELF. If your child dies, you could always work more to pay for the funeral costs. Your child can’t do that if YOU die.
Everyone needs life insurance. However, if you are wealthy enough to afford funeral expenses, you may not need it. Also consider that if your child dies, you will want cash for not only burial and funeral but lost wages from missing work.
If you have benefits through your employer, you can often get coverage for your children that is relatively inexpensive. And sometimes there is coverage where you will pay a very small amount (usually only a few dollars) per pay period for about $10K in coverage. (Kids don’t need much coverage).
Also, a lot of life insurance offers “child riders” which is a term policy attached to the main policy. These are pretty inexpensive as well.
In most cases, you don’t need a separte policy for your child. But if you feel like one is necessary, go term life. Whole life is a waste of money.
If you still can’t decide, see an agent.
Life insurance is usually purchased to replace loss of income. Since a 1 year old child does not have income (except for very few cases) there really is no need for it. However, you may want to consider a $25,000 25 year term life policy to cover funeral expenses should the unfortunate early death occur. That is my professional opinion anyway. I am sure other agents will strongly disagree.
i don’t know about what kind of insurance, but unfortunately, i have experience that can answer your question. my baby niece was diagnosed with brain cancer before she was one year old, and unfortunately, she didn’t make it. so yes, things can happen to children (God forbid they do) so they definately need life insurance.
If you have a life insurance policy on yourself (and you should) consider adding a child’s term rider that offers guaranteed insurability later in life so if they end up with health issues that would prevent them from getting insurance, they could convert it and add coverage without having to prove insurability. A very small monthly premium would cover all of your children, including future children or adopted.
Find an agent and ask questions to make a good decision.
He doesn’t need it unless he’s earning an income on which the rest of the family is relying (which I doubt). The only reason to have life insurance is so that your family can survive the loss of your income. It should not be used as an investment vehicle.
If (God forbid) a child dies, all the parents need financially speaking is enough money to pay for the funeral and burial (or cremation). Those things will cost a few thousand at most and do not need to be covered by insurance.
yes you can
In my opinon, buying life insurance on children is a waste of money. You’re better off putting the $5 a week or whatever, into a mayonaise jar.
Premiums are very cheap. The plan doesn’t get “paid up” like you think it will – that’s the sales pitch, not the reality. The “self liquidating” option isn’t going to be a reality until you’ve been paying 30 years – and it will self liquidate in a year or two.
Do a search for answers – see the question from about a week ago, where mom had been paying for a life policy for the child for over 20 years, several hundred dollars a year for a $1,000 policy, and in that time, it’s built up a whopping $175 in cash value.
Um, you can do better with the mayonaise jar. A LOT better.
I disagree with getting life insurance for children…… afterall they never did consent to it.
This is a question I am still wrestling with. My daughter is 16 months. She has no insurance even tho we can put her on our policy for fiftenn dollars a month or less, depending on the coverage. Also, any future children would be placed on the insurance and we would not have to pay any extra premium. It is term insurance- the only one I would get.
I’m sorry to tell the poster above that funeral expenses and burial for even a child can easily run thousands of dollars.
How many differs by area and services provided. Off hand, I’d guess eight thousand give or take a couple thousand.
You can get an estimate of this by visiting your friendly funeral home on any business day. They prefer mornings [there are very few funerals or viewings in the mornings].
Then you’ll be in a position to decide if a small term policy for part or all of the estimated costs of death is worth buying.
Btw, funerals go up in price annually like other things, so you’ll likely want the right to increase the amount of the term insurance by at least the rate of inflation.
Shop hard for the policy if you do decide to buy one, including the internet. For an otherwise healthy one year old, it should be quite cheap.
[I can NOT recommend any other type of policy nor any specific company. I gave up selling insurance over a decade ago -- I disliked selling fear and manipulating people's emotions.]
GL
baby life insurance was named the biggest insurance scam, thats legal today by….well i don’t remember the book but AOL news posted it when they were talking about how to spot scams, and which insurance policies you need, and which ones were total ripoffs, and an former insurance expert said you don’t need baby life insurance, period. That being said, you do need flood insurance because if there is a flood in your house, most times your regular home insurance doesn’t cover it.