Yacout
  • About Me
  • Technology
  • Startup
  • Hot Topics
  • Subscribe
  • Privacy Policy
  • Sitemap

Yacout

  • About Me
  • Technology
  • Startup
  • Hot Topics
  • Subscribe
  • Privacy Policy
  • Sitemap
Personal FInance

Pros And Cons Of Life Insurance For Children

by Justin November 21, 2019
written by Justin November 21, 2019
Pros And Cons Of Life Insurance For Children

Whether or not to purchase life insurance for children is a controversial subject on which financial advisors can’t agree. Before you buy this product, consider these pros and cons of life insurance for kids.

Pros of Children’s Life Insurance

Savings Vehicle.

Whole life or cash value life insurance on a child can be a savings vehicle to help set aside money for education or other expenses.

Guaranteed Insurability.

Purchasing and maintaining life insurance on a child can ensure his insurability in the future even if he becomes ill or disabled and, therefore, otherwise would be uninsurable.

Peace of Mind.

As with most kinds of insurance, an intangible benefit of children’s life insurance is the peace of mind for parents knowing that their child is covered, that they are saving for his future and that he will be insurable in the future.

Cons of Children’s Life Insurance

No Income Replacement Rationale. Life insurance generally is purchased to replace the income of the insured so that loved ones are financially secure after the insured’s death. This can apply to a non-working parent as well as a working parent, since the working spouse likely would have incremental child care expenses in the event of the non-working spouse’s death. Children, with a few rare exceptions, have no significant income, so this rationale for purchasing life insurance doesn’t apply to them. The exception, of course, is those few children, such as highly successful child actors or models, whose income contribution to the family is significant.

Unlikely to Become Uninsurable. The odds are very low that an individual won’t be able to purchase life insurance as an adult due to illness or disability. As a result, unless there is a strong family history of illness, there is little reason to purchase life insurance for a child because of concerns that he won’t be able to purchase it when he needs it as an adult.

Better Savings Vehicles.

Many financial advisors point out that there are better (and less expensive) savings vehicles for children than whole life or cash value life insurance. Two other options are 529 plans and Roth IRAs.

Money Better Spent on Other Insurance.

The money spent to purchase life insurance for a child may be better spent to buy additional insurance for his parents, especially if they are not adequately insured. Before even considering children’s life insurance, parents should be absolutely certain that they have enough insurance on themselves, since the financial hardship faced by the family if one or both were to die is far greater than if the child is to die.

You should also know what is a life insurance premium?

A life insurance premium is a payment made to the life insurance company, to pay for a life insurance policy. Premium can also contribute to growing the cash value of a permanent type of life insurance. This term is also applied to payments remitted for annuity contracts both fixed and variable.

If you do decide to buy children’s life insurance, know what your goals are for this product and be sure that the policy you choose meets your needs.

0 comment
0
FacebookTwitterGoogle +Pinterest
Justin
Justin

Justin Kinney is the founder of yacout.info. He finished his Developmental Communication degree at the University of Western Australia. Aside from writing, Justin is also fond of vlogging and website developing.

previous post
How Are Instagram’s Likes And Followers Effective? Crucial Points To Know!!!
next post
Are You Making These Gardening Mistakes?

Keep in touch

Facebook Twitter Google + Instagram Pinterest Youtube Snapchat RSS

Type & Hit Enter

Recent Posts

  • Anti-Aging: Five Natural and Effective Ways to Roll Back the Clock

  • Fine Furnishing Deal For Your Living Room!

  • The Ultimate Beginner’s Guide for using Soldering Iron

  • What Do You Need To Know About An Aquarium Air Pump?

  • Portable TV- An invaluable gift for travellers

  • A Mini Food Processor- Best Friend Of Housewives

  • Purity Rings: Tips For Buying One

  • How Are Instagram’s Likes And Followers Effective? Crucial Points To Know!!!

  • Everything About Telescope Optics

  • Weight Loss Tips For Beginners

  • Gift Suggestions For Pregnant Women

  • 7 Dating Advices For Single Moms

  • Best YouTube video converters online

  • Find The Best Services In Town

  • Need Bigger Muscles? Attempt This

  • How To Protect Dogs From Summer Heat?

  • Common challenges faced while starting with real estate and their best solutions!

  • Soft Water System – A Boon To Your Household!

  • Understanding How Scoring Works in Bowling

  • Five Ways to Save Big Bucks on Your Auto Insurance

  • Are You Making These Gardening Mistakes?

  • Pros And Cons Of Life Insurance For Children

  • Amazing Tips For Hosting A Successful Fundraising Event

  • Appointing A Medical Malpractice Lawyer For Your Company?

  • Things You Need To Know About Targeted Website Traffic

  • Connect Your PS4 Controller To Your iPhone In 4 Steps

  • Are You Searching For The Best Personal Bankruptcy Lawyer? Point To Consider!!!

Categories

  • Aquarium (1)
  • Arts and Entertainment (4)
  • Automotive (1)
  • Bankruptcy (1)
  • Beauty (1)
  • Business (5)
  • Business Fundraising (1)
  • Buyers Guide (1)
  • Coupons (1)
  • Cyber Liability Insurance (1)
  • Editor's Choice (3)
  • Furniture (1)
  • Gaming (1)
  • Guide (1)
  • Health and Fitness (3)
  • Health Insurance (1)
  • Home Improvement (4)
  • Internet and Businesses Online (1)
  • Life Insurance (1)
  • Lifestyle (3)
  • Marketing (1)
  • Online Shopping (1)
  • Personal (3)
  • Personal FInance (1)
  • Personal Savings (1)
  • Pets (1)
  • Printers (1)
  • Recreation (1)
  • Reference And Education (1)
  • Shopping and Product Reviews (1)
  • Tech & Gaming (2)
  • Tips (3)
  • Trips (7)
  • Uncategorized (3)
  • Water Systems (1)

Subscribe Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

  • Facebook
  • Twitter
  • Google +
  • Instagram
  • Linkedin
  • Youtube
  • Snapchat
  • Telegram
Yacout
  • About Me
  • Technology
  • Startup
  • Hot Topics
  • Subscribe
  • Privacy Policy
  • Sitemap

Popular Posts

  • 1

    Best YouTube video converters online

  • 2

    Weight Loss Tips For Beginners

  • 3

    Gift Suggestions For Pregnant Women

  • 4

    Anti-Aging: Five Natural and Effective Ways to Roll Back the Clock

  • 5

    Fine Furnishing Deal For Your Living Room!

  • 6

    The Ultimate Beginner’s Guide for using Soldering Iron

  • 7

    What Do You Need To Know About An Aquarium Air Pump?

  • 8

    Portable TV- An invaluable gift for travellers

  • 9

    A Mini Food Processor- Best Friend Of Housewives

  • 10

    Purity Rings: Tips For Buying One

  • 11

    How Are Instagram’s Likes And Followers Effective? Crucial Points To Know!!!

  • 12

    Everything About Telescope Optics

  • 13

    7 Dating Advices For Single Moms

  • 14

    Find The Best Services In Town

  • 15

    Need Bigger Muscles? Attempt This

  • 16

    6 Easy Ways To Watch Sky Sports Online For Free

  • 17

    About Coleman Camp Stoves

  • 18

    Eco Tourism in India

@2019 - All Right Reserved. Designed and Developed by PenciDesign