by mega » Wed Feb 06, 2008 02:00 pm
I was reading an article this morning about life insurance and kids and was wondering what the community take on this is. The article is of the opinion that child life insurance is not a good investment on kids but I have heard others say it was a good idea. Is it a waste of money. Would the money you spend be better invested elsewhere?
Here is a quote from the author of this article on yahoo:
Here is a quote from the author of this article on yahoo:
Question: I received an offer in the mail to buy a life insurance policy for my 18-month old daughter for a small monthly premium. As I understand it, the policy would not only build cash value, but double the amount of insurance coverage when my daughter turns 21. Do you think this is a good plan to build for my daughter's financial future or is there a better way?
-- R.K.
Answer: Let me put it this way. I think almost anything you would do with your money, outside of buying lottery tickets or playing the ponies, would be better than sinking it into a life insurance policy for your daughter.
Posted: Thu Jul 31, 2008 04:28 am Post Subject:
I am of the view that protection comes first before investment.
Life is full of uncertainties and it is important we have some form of assurance in life so that we can manage crisis more effectively. Insurance provides sum assured upon occurrence of specified events such as death, disablement, crtical illness etc.
I also believe at some point in time, insurance may not be an option but a requirement especially when we borrow loan to purchase properties we need insurance as collateral.
If that is the case, it makes logical sense to get kids life insurance. In fact the best time to insure is always before a person gets older and as a person gets older, generally he/she is prone to sicknesses. Normally kids have advantages in terms of their age and health conditions when applying for life insurance.
When addressing protection needs and investment needs, protection needs should be a more important priority.
Posted: Thu Jul 31, 2008 01:14 pm Post Subject:
Normally kids have advantages in terms of their age and health conditions when applying for life insurance.
Very true indeed!!!That is one good reason why you should have life insurance for your kids.
Apart from that we need to introspect & extract some hidden facts in line with today's fast-paced world.
If we are investing on educational policies keeping the future expenses in mind...don't we need to teach them that their lives are valuable & that they should start saving in bits-n-pieces! I believe that should come before the other things.. :)
Posted: Thu Jul 31, 2008 03:38 pm Post Subject:
in my opinion, i think the money is better spent if it is put into a college savings account. this is an investment in their future. i don't believe in using life insurance plans as an investment. i think a college plan is money better spent and saved.
my father bought me a solid life insurance plan when i was in my early 20s. he paid the premium on it for several years and then when i got married i took it over. the premium is still low and it is a gift that he did that for me at such a young age. i will do it for my kids when they get to that point as well. but in the meantime, i'm growing their college savings and looking forward to a long life with them filled with joy. i tihnk that the last thing i'm going to be interested in if something were to happen to my kids would be the amount of money i'd get out of their policies.
Posted: Fri Aug 01, 2008 12:20 am Post Subject:
i tihnk that the last thing i'm going to be interested in if something were to happen to my kids would be the amount of money i'd get out of their policies
Of course you wouldn't be interested in that, and I understand what you are saying...Here is what I did with the kids and the grandkids....My fear was/is God forbid something happen to any of them the last thing in the world I wanted to deal with was not having the money to take care of the arrangements...for that reason I had (have) modest policys on all of them about 20k I think on the kids, and maybe 25k on the grandkids (it was cheaper) actually my kids might be only 15k I honestly don't recall...anyway that was my logic...Add your comment