I think life insurance for children is a topic that is rarely discussed. But I believe that the consensus among financial pundits is that it's useless. Suze Orman, a revered financial expert, says:
First, the only reason you need life insurance is if anyone is dependent on your income.
It's safe to assume that Suze Orman doesn't think that life insurance for children is a smart financial move. She goes on to say:
And please, you new parents, do not let anyone talk you into buying a life insurance policy on your child. Remember, the point of life insurance is to replace income that would be lost if the policyholder dies. Working from the assumption that your kid isnt Dakota Fanning, theres no need to buy a life insurance policy in your kids name, since your kid doesnt produce any income you depend on.
The question is...
I say yes.
I like the way Robert Castiglione defines the word insurance in his book LEAP:
Insurance is the reimbursement for the full value of any item lost.
To me, this makes total sense.
Suze Orman says to insure a life if it generates income; Robert Castiglione says to insure a life if it has value. And everyone has value.
Why do people insure their:
Do these produce income? No, but they are of value. We advocate life insurance for children because it protects the value of their lives.
When our son was born, we got him a whole life insurance policy. It's not only for his benefit but ours too since we control the policy.
We got a PUA rider along with it to accelerate the growth and build our family bank.
The topic of life insurance for children is hardly discussed. When many people think of life insurance, they think of insurance to replace their income in the event of their death. Well, 9 times out of 10, a child is not the breadwinner in the family. So why get it?
I have a hard enough time convincing people to buy cash value life insurance, or even any life insurance for that matter. Convincing you to buy child life insurance may be just as difficult. But, you're here for personal finance education.
Of course, we suggest cash value life insurance for your child. And instead of getting hung up on the higher premiums, discover the possibilities.
Life insurance for children is not only a smart way to protect your child's value, but it's an excellent way to build wealth.
If you still side with Suze Orman, then child actors in Hollywood are the only ones that should get child life insurance.
|Subscribe to our Financial Freedom Newsletter and get your FREE As a Man Thinketh e-book.
And, stay up-to-date with all that's new at choose-financial-freedom.com. Subscribe to the RSS feed at the bottom of the navigation bar over on the left. What's an RSS feed?
|Copyright © 2008-2010 Choose-Financial-Freedom.com|