do you have life insurance for your child?

[AnnieW625]

I have been thinking about this recently and was thinking we should think about getting a whole life policy for DD. What type of coverage do you have and if you are comfortable telling me how much you pay I'd greatly appreciate it.

[egoldber]

No. The point of life insurance, as I see it, it to make up for the loss of income if one spouse dies. We have life insurance on me and DH because if either of us died, then the survivor would need the money to pay for expenses.

[specialp]

The point of life insurance, as I see it, it to make up for the loss of income if one spouse dies. We have life insurance on me and DH because if either of us died, then the survivor would need the money to pay for expenses.

:yeahthat: I've never understood life insurance for children b/c of this.

[doberbrat]

minimal - it costs me $0.50/mo and I think its a $5k or $10k benefit - basically just pays for burial costs G-d Forbid! :(

[infomama]

No, don't have life insurance for our Dc.

[katydid1971]

My understanding is life insurance for kids is a scam. What amount of money could ever make up for losing your child?

[kransden]

Of course I have life insurance on dd. Just because you think it won't happen to your family doesn't mean it won't. The last thing I want to worry about is if something horrible happens is "How am I going to pay for this? ". It doesn't cost very much for the piece of mind that I get from it. You only need a $5,000 policy.

[kijip]

No, I do not. If something happened to one of my children we could easily cover the associated costs with burial out of our savings. I would might consider a small policy if we had no savings etc.

[kransden]

No, I do not. If something happened to one of my children we could easily cover the associated costs with burial out of our savings. I would might consider a small policy if we had no savings etc.

I am too much of a worry wort. It's not that I don't have the savings now. I think of Samuel Backus (also others I know personally) and the expenses the family went through. I just feel better if I have the worst case I can imagine covered.

[mommylamb]

My financial planner has life insurance for his kids and strongly recommends it (we have not gotten it for DS yet). They have variable universal life policies, which are not the same as term life policies. The life insurance part is really the minor thing. It's more of a savings vehicle that falls through a loop hole when it comes to assessing your finances when your child applies for financial aid for school. Also, if you get it, then you can always purchase more of the life insurance portion, even if something goes wrong (as in, something happens to child's health then it would be difficult for your child to get life insurance in the future, whereas even if a problem comes up, you've already got your foot in the door and could buy more.) I think... it has been a long time since I had this conversation with him.

[annex]

My DH's parents bought a small policy for him at some point, and it irritates me to no end that we are now stuck paying the premium every year (and taxes on the piddly interest it earns) for something worth so little. I would never saddle my kids with one.

-Anne

[deenass]

We ahve small policies on each of our kids, DH gets them through work and the cost is minimal.

Echoing what a PP wrote, DH was diagnosed with a chronic illness as a child (he has Crohn's Disease).. My FIL took out a policy on DH when he was 12, we were able to convert it from term to whole a number of years ago. B/c DH has had a LOT of complications from this disease, we would basically be without life insurance for him (he only qulaifies for a small amount when he has applied) if it weren't for this policy that my FIL purchased years ago.

[mommylamb]

I started to write this and somehow deleted my first post, so quickly...

My financial planner has variable universal life policies for his kids and strongly recommends them after age 1 (they've very expensive before age 1 because children are more likely to die during their first year of life). The VUL policies have life insurance as a component, but they also are a savings instrument. So, so much money goes in each month and some of that goes to pay the premium and the rest is invested into mutual funds. The reason to do this in addition to a 529 plan is that it doesn't count against your child for financial aid. There is a loophole in the tax system. Of course, the policy is in your child's name not yours so you take a risk becuase once they're of age they could take the money and run.

Another good thing about it is that once you have the life insurance, you can always buy more, even if something terrible happens to your child and he/she is diagnosed with a terrible illness. Without already having life insurance, your child wouldn't qualify for life insurance, but since you already have it if you have a VUL, then you can always up your policy.

ETA: We haven't done it yet, but we will for DS. We have VULs for DH and me.

[citymama]

No. The point of life insurance, as I see it, it to make up for the loss of income if one spouse dies. We have life insurance on me and DH because if either of us died, then the survivor would need the money to pay for expenses.

Exactly. I'd put any of that money into her educational savings account instead!

[citymama]

Of course I have life insurance on dd. Just because you think it won't happen to your family doesn't mean it won't. The last thing I want to worry about is if something horrible happens is "How am I going to pay for this? ". It doesn't cost very much for the piece of mind that I get from it. You only need a $5,000 policy.

I don't get it. Pay for what?

[o_mom]

We have a small policy through DH's work for each child ($5k?) that would cover funeral expenses. It costs us very little as the premium covers all three kids and myself. More a peace of mind thing than a savings plan or even long term insurance plan.

The whole life policy my parents bought me as a kid is pretty pointless.... inflation has made what seemed like a large amount at the time worth very little. Even if were unable to buy insurance as an adult, the extra insurance I could purchase in the years allowed would not add up to much at all.

[roobee]

I have $10,000 though work for my kids - it's like $12 a year so I signed up for it.

I signed up for every benefit at work - there's a legal plan that's $20 a month for legal coverage through a network, that's pretty much the only reason I finally got my stuff together and got a will done. And now I'm covered for legal matters ranging from divorce to consumer complaints to traffic issues.

[BillK]

Life insurance for kids is a great thing imo - especially a Whole Life policy.

First it's dirt cheap when their little - second it will eventually develop enough money itself that premiums won't need to be paid (if you have a good policy through a good company) - third you have no idea what kind of health issues your child may develop later in life that may make him/her uninsurable.

[kijip]

Insurance as a savings vehicle IS a scam at worst and a sucky savings vehicle at best. Term life is all anyone pretty much ever needs.

[ett]

I don't get it. Pay for what?

Funeral expenses.

[HannaAddict]

The only people who suggest life insurance, whole life no less, for children are insurance agents or financial "planners" who make a hefty commission off of it. No way. If the worst happened, we would pay for burial expenses out of savings. Save your money and put it in a savings account, seriously.

[moonsky]

I have been thinking about this recently and was thinking we should think about getting a whole life policy for DD. What type of coverage do you have and if you are comfortable telling me how much you pay I'd greatly appreciate it.

No, I don't think it is necessary.

[AnnieW625]

Thanks for your opinions. I was just thinking it would be easier to start a policy when she is young in case anything happens and that when she is an adult the premiums on her policy would be cheaper because she has had the policy for so long. Also as depressing as it sounds if she ends up with health problems later on in life and can't qualify as an adult then she'd have at least a bit of insurance.

[mytwosons]

I pay something like 16 cents a month for either a $10k or $15k policy through work. It would be used for burial costs and is ridiculously inexpensive.

I know it's not rational, but I feel like DC would be more likely to die if I didn't have the insurance. That's really why I have it.

[Momof3Labs]

We have a policy on each of the boys. DH developed cancer as a very young adult (before most people would think of buying life insurance) and as a result, is now very difficult to insure. We have been fortunate enough, finally, to find him coverage at a fairly reasonable price but he was uncovered for many years (15 years) before we could make that happen.

Having experienced that firsthand, we have purchased whole life policies for each of the boys. We chose the policy that had the lowest savings component (because I don't believe in using insurance as a savings vehicle) but the richest future purchase options (times when they could increase their death benefit at a very reasonable cost regardless of health condition). The death benefit (and future purchase options) is not insignificant because we want it to be of some value to them in 20-30 years - if they exercise all of their future purchase options as adults, their death benefit will be well into the 7-figure range. But it is still VERY cheap today.

It's not necessarily right for most people, but felt right to us given our firsthand experience with an uninsurable adult.

[tnrnchick74]

I do have a life insurance policy for DS through my employer. Its the max they will allow - costs me $2 a month. It's enough to bury my son and pay some outstanding medical bills (god forbid ANYTHING should happen!). If it was terribly expensive, I would only carry a low policy - enough to bury him.

[baileygirl]

When I was working I had a term policy for DS thru my employer. It was very inexpensive and I figured if something like that happened to DS I would be a wreck and unable to work.

[mariza]

I used to think it was not needed, but have seen recently how not having it can have a negative effect later in life. I have 2 friends one in her 30's with MS and one in her 40's with Lupus. Neither one of these women are able to obtain insurance, if they had had a policy established during childhood, at least they would have a little bit of insurance to count on. We plan to insure both of our kids soon.

[bubbaray]

Yes, mainly b/c it is offered through my employer and cheap.

[missym]

It's not necessarily right for most people, but felt right to us given our firsthand experience with an uninsurable adult.

We don't have insurance for the girls yet, but I think it might be a good idea for this reason. I'm currently uninsurable (though thankfully I already had a small policy in place) and my sister has struggled with this due to her diabetes, as well. I'd rather the girls have something to fall back on in case they have health problems in the future.

[nov04]

We have a small policy for dd2. The purpose of it for us is to ensure she always has the option of having it and won't be ineligible in the future due to a 'pre-existing condition'.

dd1 may never be able to buy life insurance for herself (to protect her future family financially) because I didn't have the psychic knowledge to get it for her before her stroke diagnosis at 6m. We *may* be able to get her a policy when she's 12 if she remains stable but I'm not confidant.

We selected a modest amt that we know she'd appreciate in the future for her family and went with a reputable company (after investigating many).

[let73]

We follow the Dave Ramsey plan and this is his perspective on whole life insurance:

http://www.daveramsey.com/the_truth_about/life_insurance_3481.html.cfm


Like PP's mentioned, we have a policy($5000) for DD which costs like $10 year through work which would cover burial expenses if needed.

[amldaley]

ITA that life insurance is to cover loss of income.

We do not have a significant savings account at this time.

I have a very small policy on dd, enough to cover 1 month salary for me to take off work, and buy plane tickets for my mother. We would get financial assistance for burial etc from my husband job (military).


Once we are financially solvent again and have sufficient savings, I will drop the policy.

[mamicka]

Before I read all the responses, my thought was that life insurance for a child was creepy. I'm not totally convinced that it isn't creepy, but I've got a lot to think about. We might have to reconsider.

Thanks for all the responses, even though this wasn't my thread.

[SnuggleBuggles]

We have a policy on each of the boys. DH developed cancer as a very young adult (before most people would think of buying life insurance) and as a result, is now very difficult to insure. We have been fortunate enough, finally, to find him coverage at a fairly reasonable price but he was uncovered for many years (15 years) before we could make that happen.

Having experienced that firsthand, we have purchased whole life policies for each of the boys. We chose the policy that had the lowest savings component (because I don't believe in using insurance as a savings vehicle) but the richest future purchase options (times when they could increase their death benefit at a very reasonable cost regardless of health condition). The death benefit (and future purchase options) is not insignificant because we want it to be of some value to them in 20-30 years - if they exercise all of their future purchase options as adults, their death benefit will be well into the 7-figure range. But it is still VERY cheap today.

It's not necessarily right for most people, but felt right to us given our firsthand experience with an uninsurable adult.

That makes sense. I will have to investigate for the boys since the type of cancer dh had was hereditary. He has life insurance through work but it has been really hard to find independent insurance b/c of the cancer history. It'd be nice for the boys not to have to face that.

Beth

[newg]

Thanks for your opinions. I was just thinking it would be easier to start a policy when she is young in case anything happens and that when she is an adult the premiums on her policy would be cheaper because she has had the policy for so long. Also as depressing as it sounds if she ends up with health problems later on in life and can't qualify as an adult then she'd have at least a bit of insurance.


Yes! This is exactly why we got it for DD...I am diabetic..have been since I was 8...my dad could not get any type of life insurance for me..eventhough I was/am probably just as healthy (or healthier) than many non-diabetics....I was only able to get life insurance after I got married because my DH already had it...but we pay dearly for it........so we got DD life insurance so if she becomes diabetic (I pray to god she never does)...she will already have life insurance..........so it's not so much for now...but for later

[graciebellesmomma]

As a parent who has lost a child, let me tell you that having life insurance on my son was the best thing my husband ever did without telling me, and not really knowing himself.
He worked for Apple and when we got married, my son automatically went on his insurance plan when I did. We never realized that both of our children had free life insurance.

My son was 17 when we were married. He was literally on my husband's plan for 10 months, when he was killed. The money we got, which was truly a surprise and a blessing allowed me to not have to go back to work. There was no way I could work. I was so full of grief after losing a child to a drunk driver. That money, and it wasn't a lot, helped take the pressure off my husband and me. We were not rich people. His burial costs were 17,000 and that was just for the basics. 5,000 will not go far where we lived.
It allowed us to fly my Mom out, as well.

Apple also gave my husband 6 weeks off with paid leave. We were so blessed that he was working for Apple at that time. They made such a horrible tragedy just a little bit bearable with their kindness and benefits.

I hate talking about it, but seriously it was something that I never had in my life. We barely had medical coverage most of the time. I recommend it for multiple reasons.

[alexsmommy]

I respectfully disagree with those who have said that it is for lost income and/or is a scam. I have worked with families who have lost children and often, on top of the obvious devestating grief issues, they have been financially wiped out by burial costs - adding additional stressors to the family that cannot absorb any more stress. Depending on where you live, funeral costs can exceed 10K - and I'm not talking an expensive funeral. I have had mothers sobbing because they could not have the service they want for their child.
It's very easy to say "save your money instead" but the reality is, many, many people can't at this point. A policy that costs $10 - $35 a year is manageable. I think this board skews towards more solidly middle class families that may be able to put $15K away, but for much of the country, this is a struggle.
No one want to think about this because having to use the policy means the unthinkable has happened.
Lori and others have also brought up the excellent point of insuring your child in the event of chronic illness etc.
I will be honest, this is on our list of "we need to do this" and we have been negligent in doing it. Yet, I have researched it and will ultimately get inexpensive policies on our children. In fact, this thread has inspired me to get going.

[egoldber]

I had not thought about uninsurability as an adult. But for example, the policy I would get through work would not work for that, because it is a) only while I am with that place of employment and 2) stops at age 22.

[KpbS]

No. The point of life insurance, as I see it, it to make up for the loss of income if one spouse dies. We have life insurance on me and DH because if either of us died, then the survivor would need the money to pay for expenses.

Yes, this.

[kijip]

funeral costs can exceed 10K - and I'm not talking an expensive funeral. I have had mothers sobbing because they could not have the service they want for their child.
It's very easy to say "save your money instead" but the reality is, many, many people can't at this point. A policy that costs $10 - $35 a year is manageable.

Life insurance does not pay out right away, a family still needs to be able to cover a lot of costs out of pocket. My FIL died in the hospital of an easily verifiable cause and the insurance money (small policy, just a small part of his estate) lagged for a fair amount time. If we had been thinking to use that money to bury him, we would have been SOL.

If the unthinkable happens, a lot of people will find it a financial reach to cover the costs, however that does not make life insurance policies for children a wise buy across the board.

[kransden]

The funeral homes can get you a bank loan until the money comes in. It typically isn't a big deal. A funeral home isn't going to let a little thing like having the cash on hand get in the way of spending $$$$. Most people don't have that sort of money lying around in their saving account. I normally would say you should have it invested, but that might not be the best idea at the moment.

[alexsmommy]

Life insurance does not pay out right away, a family still needs to be able to cover a lot of costs out of pocket. My FIL died in the hospital of an easily verifiable cause and the insurance money (small policy, just a small part of his estate) lagged for a fair amount time. If we had been thinking to use that money to bury him, we would have been SOL.

If the unthinkable happens, a lot of people will find it a financial reach to cover the costs, however that does not make life insurance policies for children a wise buy across the board.

Yes but the scramble often involves borrowing money - either a loan from the funeral home, bank or family/friends. It still needs to be paid back. I don't think I stated it's for everyone. I am saying that I disagree with the idea that it's only for income loss of an adult provider and/or a scam. It serves a very valuable service for a certain section of the population and I wanted to make that point to the OP. I think the value of different types etc has been well addressed already - not all life insurance is equal, but I do think researching a policy for families that don't have easy access to cash and/or family that can pick up the slack in a tragedy should be explored.

[MelissaTC]

We have one on all of us, including DS. It is a 10k policy.

[Happy 2B mommy]

MIL bought one for DD before she turned 2. She paid the premiums up front and in 18 years it supposedly "pays for itself" so we/DD won't be stuck paying premiums. I think it's term for a pretty small amount (5-10k).

MIL had taken one out for DH when he was about that age. DH was diagnosed with a seizure disorder in his 20's and luckily he could still convert it and increase coverage, otherwise he wouldn't have had any life insurance for several years.

[inmypjs]

We have worked with a couple of CFPs (Certified Financial Planners) and they have all recommended life insurance for our children. I do not in any way believe it is a scam. I don't think you need a ton, but it is a good idea IMO for a couple of reasons.

First, if the unthinkable happens, the last thing you want to have to worry about are costs associate with a funeral and burial. Second, if your child were to develop a serious illness, they *may* have difficulty obtaining life insurance when they are an adult. A policy for your child can cover both of those needs.

We purchased a simple policy from Shelter Insurance. I believe it used to be called the "junior special" but I think they changed it to something a little more serious sounding! If memory serves, you can buy 5000, 10000, 15000 or maybe a little more for your child now. It is only a couple of hundred dollars for the policy - a one time payment. Then if you child needs more insurance as an adult, they can add on to it.