[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.easyquotes4you.com\/pros-and-cons-life-insurance-for-children\/#BlogPosting","mainEntityOfPage":"https:\/\/www.easyquotes4you.com\/pros-and-cons-life-insurance-for-children\/","headline":"The Pros and Cons of Life Insurance for Children","name":"The Pros and Cons of Life Insurance for Children","description":"Quick Navigation Links Show 1 Life Insurance for Children 2 How To Buy Life Insurance For Children 3 The Pros and Cons Of Life Insurance for Children 4 Lump Sum Of Money for Funeral Expenses 5 Locks In Your Child\u2019s Insurability 6 Use As a College Savings\/Retirement Savings 7 Final Thoughts Life Insurance for Children.. More<\/a>","datePublished":"2018-09-26","dateModified":"2019-12-17","author":{"@type":"Person","@id":"https:\/\/www.easyquotes4you.com\/author\/site-admin\/#Person","name":"Rob Pinner","url":"https:\/\/www.easyquotes4you.com\/author\/site-admin\/","identifier":1,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/e4da538e10e071b419f4843e8193941a0ff5ad58e937daa177fa846a5124dc4d?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/e4da538e10e071b419f4843e8193941a0ff5ad58e937daa177fa846a5124dc4d?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Rob Pinner","logo":{"@type":"ImageObject","@id":"https:\/\/www.easyquotes4you.com\/wp-content\/uploads\/2018\/09\/logo-shape-e1536791917640.png","url":"https:\/\/www.easyquotes4you.com\/wp-content\/uploads\/2018\/09\/logo-shape-e1536791917640.png","width":600,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.easyquotes4you.com\/wp-content\/uploads\/2018\/09\/cropped-Life-Insurance-for-children.jpg","url":"https:\/\/www.easyquotes4you.com\/wp-content\/uploads\/2018\/09\/cropped-Life-Insurance-for-children.jpg","height":675,"width":1200},"url":"https:\/\/www.easyquotes4you.com\/pros-and-cons-life-insurance-for-children\/","about":["Life Insurance"],"wordCount":826,"keywords":["buy online","child insurance","child term rider","convert term","experienced agent","expire","group life insurance","independent agency","indexed universal life","insurance","juvenile insurance","life insurance","life insurance and retirement","universal life","whole life"],"articleBody":" Quick Navigation Links Show 1 Life Insurance for Children 2 How To Buy Life Insurance For Children 3 The Pros and Cons Of Life Insurance for Children 4 Lump Sum Of Money for Funeral Expenses 5 Locks In Your Child\u2019s Insurability 6 Use As a College Savings\/Retirement Savings 7 Final Thoughts Life Insurance for ChildrenShould you own life insurance on your children?\u00a0 That\u2019s a question we get a lot, and there really is no wrong answer.\u00a0 I can see both sides of the argument regarding it\u2019s value to your child. Life insurance for children should be a discussion to have for every parent.Life insurance for children is heavily marketed to grandparents for 3 reasons:To save moneyLock in a low rateTo protect the child\u2019s insurability (this allows them to buy life insurance without having to pass an exam).The parents of children, while not as much as the grandparents, are often marketed also.\u00a0 These reasons are usually given.All the Above \u2191Burial InsuranceCollege TuitionRetirement IncomeThese reasons are why some agents recommend purchasing life insurance for children, but many advisors recommend being cautious.Insurance agents and financial advisors have come to the agreement that there are more important financial plans that need to be made before considering life insurance for children.\u00a0 Those include:Emergency Savings FundLife & Disability Insurance on you (the parents)Your child\u2019s college savingsYour retirement savingsHow To Buy Life Insurance For ChildrenHere are a couple of ways to buy life insurance for children:You can add a rider to your existing life insurance policy. You do this by adding a child rider. The amounts you can purchase range between $5K-$25K and varies by life insurance carrier.\u00a0 These riders usually expire when your child turns 25, but most will allow you to convert to a permanent policy before the expiration.\u00a0 Stand-alone term is not available for children.Your next option is to buy a permanent policy on your child. These include whole life and universal life as options.\u00a0 This coverage will last your child\u2019s entire life and build up cash value. It will be more expensive than child term rider.Most life insurance carriers will allow you to buy a permanent policy on your child.\u00a0 As the parent or grandparent, you would be the owner and beneficiary of the policy until your child reaches adulthood. Gerber Life is the best known for child life insurance policies but be weary, they tend to be high.According to a survey by LIMRA, about 20% of parents or grandparents have life insurance on their children and grandchildren.The Pros and Cons Of Life Insurance for ChildrenBelow is the pros and cons of buying life insurance for childrenLump Sum Of Money for Funeral ExpensesPros: If your child does pass away, a life insurance policy could help with funeral expenses and medical bills.\u00a0 Also, could provide money for counseling and\u00a0 household bills if the parents have to miss work.Cons: Although unlikely, there is a risk of a child dying.\u00a0 With funerals averaging over $10K, most families don\u2019t have the savings if this were to occur.\u00a0 Just take a look at how many GoFundMe pages have been set up to cover an unexpected death.Locks In Your Child\u2019s InsurabilityPros: There does lie a chance that your child may not qualify for life insurance when they are older.\u00a0 Reasons for this could be a medical problem as a child, bad driving record, or even a criminal record.\u00a0 Buying life insurance on your child would eliminate this from happening and guarantee they had life insurance as an adult.Cons: Analysts say that most 20-30-year old\u2019s have no problem qualifying for life insurance.\u00a0 This is reason not to buy a child policy. Also, the guaranteed insurability option is tied to amount of the child rider which is usually minuscule compared to what an adult with a family would need.Use As a College Savings\/Retirement SavingsPros: The cash value of permanent life insurance policies grow tax free while accumulating.\u00a0 If done properly they can also be withdrawn tax-free.\u00a0 This requires that you always keep your policy in-force.\u00a0 If your policy lapses and you have withdrawn money, it could have tax implications. The cash value can be used for anything, like college or down payment on a house.Cons: This is a little tricky.\u00a0 There is no way possible to save enough money for your child\u2019s college (Not enough time). The cash value of permanent policies usually has fees associated which drives down the rate of return. These policies also are a bit pricey.Final ThoughtsAlways make sure to look at your financial situation first before purchasing a policy on your child.\u00a0 It is more important for you as the parent to be properly covered.\u00a0 Always team up with an experienced agent who can get you multiple quotes and help guide through the process.\t{\t\t\"@context\": \"https:\/\/schema.org\",\t\t\"@type\": \"FAQPage\",\t\t\"mainEntity\": [\t\t\t\t\t{\t\t\t\t\"@type\": \"Question\",\t\t\t\t\"name\": \"When should I purchase life insurance on my child?\",\t\t\t\t\"acceptedAnswer\": {\t\t\t\t\t\"@type\": \"Answer\",\t\t\t\t\t\"text\": \"The best time to purchase life insurance on your child is when they are born. You will lock in the lowest premium, there health, and guaranteed they will always have coverage.\"\t\t\t\t\t\t\t\t\t\t,\t\t\t\t\t\"image\" : {\t\t\t\t\t\t\"@type\" : \"ImageObject\",\t\t\t\t\t\t\"contentUrl\" : \"https:\/\/www.easyquotes4you.com\/wp-content\/uploads\/2018\/09\/Life-Insurance-for-children.jpg\"\t\t\t\t\t}\t\t\t\t\t\t\t\t\t}\t\t\t}\t\t\t,\t\t\t\t{\t\t\t\t\"@type\": \"Question\",\t\t\t\t\"name\": \"How much life insurance should I buy on my child?\",\t\t\t\t\"acceptedAnswer\": {\t\t\t\t\t\"@type\": \"Answer\",\t\t\t\t\t\"text\": \"You will at least want to own enough life insurance on your child to cover any burial expenses. We recommend somewhere between $10K-$50K.\"\t\t\t\t\t\t\t\t\t}\t\t\t}\t\t\t,\t\t\t\t{\t\t\t\t\"@type\": \"Question\",\t\t\t\t\"name\": \"What type of life insurance is available for children?\",\t\t\t\t\"acceptedAnswer\": {\t\t\t\t\t\"@type\": \"Answer\",\t\t\t\t\t\"text\": \"The types of life insurance for children are whole life, universal life, and you can add them to your life insurance policy as a term rider.\"\t\t\t\t\t\t\t\t\t}\t\t\t}\t\t\t,\t\t\t\t{\t\t\t\t\"@type\": \"Question\",\t\t\t\t\"name\": \"Why does my child need life insurance?\",\t\t\t\t\"acceptedAnswer\": {\t\t\t\t\t\"@type\": \"Answer\",\t\t\t\t\t\"text\": \"If you don't have enough in savings to pay for a funeral then your child needs life insurance. You also may buy life insurance for your child to lock in the lowest premium and to protect there insurability.\"\t\t\t\t\t\t\t\t\t}\t\t\t}\t\t\t,\t\t\t\t{\t\t\t\t\"@type\": \"Question\",\t\t\t\t\"name\": \"Should I own my child's life insurance policy?\",\t\t\t\t\"acceptedAnswer\": {\t\t\t\t\t\"@type\": \"Answer\",\t\t\t\t\t\"text\": \"Yes, you as the parent or grandparent should be the owner and beneficiary of your child's life insurance policy.\"\t\t\t\t\t\t\t\t\t}\t\t\t}\t\t\t\t\t\t]\t}"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"The Pros and Cons of Life Insurance for Children","item":"https:\/\/www.easyquotes4you.com\/pros-and-cons-life-insurance-for-children\/#breadcrumbitem"}]}]