Life Insurance for Children

When is life insurance for children really necessary?

While a child’s risk of death is minimal under most circumstances it is still true that in 2007, over 29,000 children died before they reached their second birthday and more than 10,000 more died before they turned 15.

The main purpose of life insurance is to cover the expenses of the surviving family members upon the death of the primary income earner. Since children do not have any dependents and are rarely the primary (or even secondary) wage earner, logic would dictate that their risk is low and that life insurance is unnecessary.

That is not to say that purchasing life insurance for children is always a bad idea; what if, for example, your child is earning a significant amount of income for your family as a model or an actor? This might be a circumstance wherein life insurance for a child is warranted.

Some people consider a life insurance policy for children as a gift or annuity endowment for that child as they grow older. This way, they earn some interest and have a life insurance policy in place that they can continue when they are adults, and may actually need it.

Other people think children’s life insurance policies are no longer a worthwhile product, in light of more effective tools like state or college operated 529 savings plans.

Your particular situation may have unique variables to consider and don’t forget that each state has a mix of options for college savings plans that may make them better or worse alternatives than a life insurance policy for your children if you are thinking about how to save for your child’s future.

Perhaps the best service you can provide your children as you plan for their college years is to know the advantages and disadvantages of each insurance and saving option and teach your children to take a long-term perspective of their finances.

Affordable Life Insurance Rates
Are Waiting For You!
Choose Your State

Related Information

Why Have Life Insurance? | 7 Essential Reasons

Find out why it is important for you to have life insurance with these 7 simple reasons. Help protect your family from financial instability after you're gone.

Read More

Term Life Insurance Options for Your Kids

Term life insurance for children provides death benefits if your children die while the policy is active. Learn more about how these policies work.

Read More

Term vs. Whole Life Insurance

Term and whole life insurance are two of the most popular kinds of life insurance policies. Read on to learn how they work.

Read More

4 Tips to Help You Shop for Life Insurance

Looking for some life insurance advice? Here are 4 essential tips that can help you compare your life insurance options to find the right fit for you.

Read More

Determining Your Life Insurance Policy Length

How long should you have life insurance for? There are three key indicators that can help you determine the answer.

Read More

Life Insurance Policy or Annuity Plan | What's the Difference?

Life insurance and annuities operate differently. Compare the two below and decide which is the best option for you and your beneficiaries.

Read More

Life Insurance | What You Need to Know

Life insurance can be a crucial form of financial protection for your loved ones. Here's what to consider if you're shopping for a life insurance company.

Read More

5 Reasons You Should Purchase Life Insurance

If anyone depends on you financially, life insurance shouldn't be an afterthought. Here are 5 reasons you should consider purchasing life insurance.

Read More

5 Things to Look For When Buying Life Insurance

Here is what you should look for when buying life insurance to make sure your family has enough money to maintain their lifestyle after you die.

Read More