Does my child need another life insurance policy? Or, is it that I am allowed to add him on my own policy?
Total Comments: 32
Posted: Wed Oct 01, 2008 06:13 am Post Subject:
Hi, one may say that purchasing a child life insurance is a good move, ie when he/she will come of his/her age he/she may enjoy the benefits of your early investment. That is why parents or grandparents often takes out permanent life plans on kids. But some investment professors may consider child's life plan as a lousy investment. The amount of money the policy will fetch at the end of the tenure may not even worth the time and investment. Hence, you may wish to think of the other possible sources of investments to secure the future of your child, before investing the money in a child life plan.
~jeremy
Posted: Wed Oct 01, 2008 06:19 am Post Subject:
I'd say that it is more important to secure your life than securing the life of the child. If you remained covered with sufficient amount of death benefits, the child will automatically enjoy the benefits of a secured life.
The purpose of life insurance is to protect the family's wellbeing after the pre-matured death of the breadwinner of the family. I hope you're not aiming at gaining out of your child's death, hence, cover yourself by purchasing sufficient amount of life insurance.
Posted: Wed Oct 01, 2008 06:43 am Post Subject:
Hi there,
You do have the option to either add your child to your own policy or get a rider that adds his name to your own policy. The death benefits for such riders are generally limited between $5,000-$10,000. But whatever be your choice make sure that you have insured his life. Evan
Posted: Wed Oct 01, 2008 07:00 am Post Subject:
Hi all,
Some people are truly skeptical about covering the life of their children. But it is truly easy. When you opt for a term life policy for your child, you'd need to pay much smaller amounts as premiums. On the other hand you may choose to cover your child through your group life policy provided by your employer. It is also not that costly I guess! Even when you're confused about the whole thing and can't depend on the various feed backs, make sure that you cover for your child as soon as he attains adulthood. ArindamSenIndies
Posted: Wed Oct 01, 2008 07:23 am Post Subject:
Hi, I have something to say in this regard. I'd think of life insurance as a replacement for my lost income in the event that a near or dear one passes away. If my son is not a celebrity, I don't see him earning so much that would inflict a financial damage to my family in the event that he passes away.
What matters to me the most is the death of my child- I don't think it would be easier for me to bear the tragedy..I don't think anybody would really care about the smaller expenses associated with the death of a dear relative e.g. funeral costs etc. I guess, its a lot better idea to save money (rather than paying for those useless premiums) in order to use it for the challenges that he might face ahead in his life.
Thanks, Purpleheaded08
Posted: Wed Oct 01, 2008 07:34 am Post Subject:
But Purpleheaded08, don't you see any other reason for buying life insurance for your child? Don't you think it could be truly difficult for you to insure your child once he achieves a medical condition?
I'm sure, you're aware that there are some medical conditions which could prevent your child's life from getting covered in the future. And to tell you frankly, I've seen that the life insurance premiums for young and healthy adults are never costlier than those meant for the children.
Regards, ArindamSenIndies
Posted: Wed Oct 01, 2008 10:13 am Post Subject:
There are varying views on life ins for children...I personally have policys on my kids and grandkids and yes it creeps me out...the reasoning behind my purchase was this...God forbid something happened, I don't want to have to worry how I'm going to come up with 10k or better to handle the arrangements...these are small policys I have I think they are all 15 or 20k...The policys we have on the grandbabies are a 300 or so one time payment...this insures them until they are I think 26 at that time they can convert it..the main thing is they are guaranteed to be able to purchase life ins...regardless of any health problem.
Posted: Wed Oct 01, 2008 01:55 pm Post Subject:
Arindam and Lori are exactly right. People purchase life insurance for two main reaons. To cover expenses should something happen and, more ofthen than the first, provide a vehicle for insurance that is available to the child when they are older should they become uninsurable (or insurance is cost prohibitive).
You are simply helping your child provide for THEIR family when they get older.
Posted: Wed Oct 01, 2008 08:49 pm Post Subject:
Does my child need another life insurance policy? Or, is it that I am allowed to add him on my own policy?
It would normally depend on your "budget" for life insurance premiums.
If you can afford it, I would suggest purchasing a separate life insurance policy on your child for two reasons:
(1) Insuring a child by a "child rider" usually only provides life insurance coverage for a pre-determined number of years, say to age 18.
(2) In the event of your death, the child rider would also terminate (could possibly be convertible).
Buying life insurance on children is just a responsible thing to do.
The amount of life insurance we can purchase on the lives of our children is usually governed by the amount of life insurance we, the parents, own.
So, if we, as parents, have designed our life insurance programs properly, we can purchase a substantial amount of life insurance on our children, why? Because we can "lock in" an insurance premium that will not change when our kids are adults and have families of their own.
How would you like to own a $100,000 permanent life insurance policy for a premium of $25.
Something to think about.
Posted: Fri Oct 03, 2008 09:04 am Post Subject:
Does child need life insurance policy?
I guess this is not a question of need but want. I agree with Jeorge that it is more important to secure the life of the breadwinner than securing the life of the child.
Once this is taken care of, there is no harm to get a life insurance for the child. Some parents may "want" their children to have insurance at lower rate.
Once the children turn adults and take over the policy ownership, they have the advantage of continuing to pay the same amount of premium. Their premium is usually substantially lower than the premium to be borne by their peer who take up policies at much older age.
Posted: Wed Oct 01, 2008 06:13 am Post Subject:
Hi, one may say that purchasing a child life insurance is a good move, ie when he/she will come of his/her age he/she may enjoy the benefits of your early investment. That is why parents or grandparents often takes out permanent life plans on kids. But some investment professors may consider child's life plan as a lousy investment. The amount of money the policy will fetch at the end of the tenure may not even worth the time and investment. Hence, you may wish to think of the other possible sources of investments to secure the future of your child, before investing the money in a child life plan.
~jeremy
Posted: Wed Oct 01, 2008 06:19 am Post Subject:
I'd say that it is more important to secure your life than securing the life of the child. If you remained covered with sufficient amount of death benefits, the child will automatically enjoy the benefits of a secured life.
The purpose of life insurance is to protect the family's wellbeing after the pre-matured death of the breadwinner of the family. I hope you're not aiming at gaining out of your child's death, hence, cover yourself by purchasing sufficient amount of life insurance.
Posted: Wed Oct 01, 2008 06:43 am Post Subject:
Hi there,
You do have the option to either add your child to your own policy or get a rider that adds his name to your own policy. The death benefits for such riders are generally limited between $5,000-$10,000. But whatever be your choice make sure that you have insured his life. Evan
Posted: Wed Oct 01, 2008 07:00 am Post Subject:
Hi all,
Some people are truly skeptical about covering the life of their children. But it is truly easy. When you opt for a term life policy for your child, you'd need to pay much smaller amounts as premiums. On the other hand you may choose to cover your child through your group life policy provided by your employer. It is also not that costly I guess! Even when you're confused about the whole thing and can't depend on the various feed backs, make sure that you cover for your child as soon as he attains adulthood. ArindamSenIndies
Posted: Wed Oct 01, 2008 07:23 am Post Subject:
Hi, I have something to say in this regard. I'd think of life insurance as a replacement for my lost income in the event that a near or dear one passes away. If my son is not a celebrity, I don't see him earning so much that would inflict a financial damage to my family in the event that he passes away.
What matters to me the most is the death of my child- I don't think it would be easier for me to bear the tragedy..I don't think anybody would really care about the smaller expenses associated with the death of a dear relative e.g. funeral costs etc. I guess, its a lot better idea to save money (rather than paying for those useless premiums) in order to use it for the challenges that he might face ahead in his life.
Thanks, Purpleheaded08
Posted: Wed Oct 01, 2008 07:34 am Post Subject:
But Purpleheaded08, don't you see any other reason for buying life insurance for your child? Don't you think it could be truly difficult for you to insure your child once he achieves a medical condition?
I'm sure, you're aware that there are some medical conditions which could prevent your child's life from getting covered in the future. And to tell you frankly, I've seen that the life insurance premiums for young and healthy adults are never costlier than those meant for the children.
Regards, ArindamSenIndies
Posted: Wed Oct 01, 2008 10:13 am Post Subject:
There are varying views on life ins for children...I personally have policys on my kids and grandkids and yes it creeps me out...the reasoning behind my purchase was this...God forbid something happened, I don't want to have to worry how I'm going to come up with 10k or better to handle the arrangements...these are small policys I have I think they are all 15 or 20k...The policys we have on the grandbabies are a 300 or so one time payment...this insures them until they are I think 26 at that time they can convert it..the main thing is they are guaranteed to be able to purchase life ins...regardless of any health problem.
Posted: Wed Oct 01, 2008 01:55 pm Post Subject:
Arindam and Lori are exactly right. People purchase life insurance for two main reaons. To cover expenses should something happen and, more ofthen than the first, provide a vehicle for insurance that is available to the child when they are older should they become uninsurable (or insurance is cost prohibitive).
You are simply helping your child provide for THEIR family when they get older.
Posted: Wed Oct 01, 2008 08:49 pm Post Subject:
Does my child need another life insurance policy? Or, is it that I am allowed to add him on my own policy?
It would normally depend on your "budget" for life insurance premiums.
If you can afford it, I would suggest purchasing a separate life insurance policy on your child for two reasons:
(1) Insuring a child by a "child rider" usually only provides life insurance coverage for a pre-determined number of years, say to age 18.
(2) In the event of your death, the child rider would also terminate (could possibly be convertible).
Buying life insurance on children is just a responsible thing to do.
The amount of life insurance we can purchase on the lives of our children is usually governed by the amount of life insurance we, the parents, own.
So, if we, as parents, have designed our life insurance programs properly, we can purchase a substantial amount of life insurance on our children, why? Because we can "lock in" an insurance premium that will not change when our kids are adults and have families of their own.
How would you like to own a $100,000 permanent life insurance policy for a premium of $25.
Something to think about.
Posted: Fri Oct 03, 2008 09:04 am Post Subject:
Does child need life insurance policy?
I guess this is not a question of need but want. I agree with Jeorge that it is more important to secure the life of the breadwinner than securing the life of the child.
Once this is taken care of, there is no harm to get a life insurance for the child. Some parents may "want" their children to have insurance at lower rate.
Once the children turn adults and take over the policy ownership, they have the advantage of continuing to pay the same amount of premium. Their premium is usually substantially lower than the premium to be borne by their peer who take up policies at much older age.
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