Whole life insurance for kids

[Anonymous]

You have term life through usaa, not whole life. Very different products. Term life is good for people who earn money or for whom you’d have to pay to replace their skills in the household (Sahms should have it). Children do not need it, and most childless couples who both work don’t need it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We have only a tiny bit of whole life on our kids. Very small policies. We really just have it because the policies can be kept when they are adults in case they are dxed or in some accident between now and then that will preclude them from having private term insurance when they are adults and have a family of their own.

It is a small price to pay for that peace of mind. Once they are adults we will drop it.

Peace of mind for what? Why do you need money if your child dies? They're not supporting you financially.

Understand why people buy life insurance - it's to provide financial support to the people who are left behind (spouse, children) after a breadwinner dies.

I think PP means the peace of mind of knowing her children will have life insurance as adults even if they develop an uninsurable condition. But I still don't think whole life for kids is an especially good tool for this. You're better off self-insuring by putting that money into long-term savings. Many adults who are wage earners with significant income will also have access to group life policies, which don't require underwriting. Seeking out jobs with that benefit would probably be a better strategy for the very small number of people for whom this is an issue.

A very small policy would be of little use if they have a family to support and die young. Especially after 30 years of inflation.
I don’t see what peace of mind this gets you. Either they die before they start earning and building a family, in which case there is no need for the money, or they die after forming a family in which case you need a million dollars or so in coverage.

[Anonymous]

Scam

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We have only a tiny bit of whole life on our kids. Very small policies. We really just have it because the policies can be kept when they are adults in case they are dxed or in some accident between now and then that will preclude them from having private term insurance when they are adults and have a family of their own.

It is a small price to pay for that peace of mind. Once they are adults we will drop it.

Peace of mind for what? Why do you need money if your child dies? They're not supporting you financially.

Understand why people buy life insurance - it's to provide financial support to the people who are left behind (spouse, children) after a breadwinner dies.

I think PP means the peace of mind of knowing her children will have life insurance as adults even if they develop an uninsurable condition. But I still don't think whole life for kids is an especially good tool for this. You're better off self-insuring by putting that money into long-term savings. Many adults who are wage earners with significant income will also have access to group life policies, which don't require underwriting. Seeking out jobs with that benefit would probably be a better strategy for the very small number of people for whom this is an issue.

A very small policy would be of little use if they have a family to support and die young. Especially after 30 years of inflation.
I don’t see what peace of mind this gets you. Either they die before they start earning and building a family, in which case there is no need for the money, or they die after forming a family in which case you need a million dollars or so in coverage.

The policy can be increased when they are adults if it is needed, but of course we hope it doesn't come to that. The 10k benefit is something, but of course self insuring is the best way to go if this situation comes to pass and that is what we would encourage them to do. For us now, they have some assets and we will just see what is left after college to see if it makes sense to ditch the policies. It is costing us like $15/mo total so not really a factor one way or another. We have friends with kids who have juvenile diabetes, friends with kids who have autism, food allergies and our kids have ADHD. Right now ADHD is not a factor for private term health insurance but who knows about the future? 15/mo and it is one less thing to worry about.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We have only a tiny bit of whole life on our kids. Very small policies. We really just have it because the policies can be kept when they are adults in case they are dxed or in some accident between now and then that will preclude them from having private term insurance when they are adults and have a family of their own.

It is a small price to pay for that peace of mind. Once they are adults we will drop it.

Peace of mind for what? Why do you need money if your child dies? They're not supporting you financially.

Understand why people buy life insurance - it's to provide financial support to the people who are left behind (spouse, children) after a breadwinner dies.

I think PP means the peace of mind of knowing her children will have life insurance as adults even if they develop an uninsurable condition. But I still don't think whole life for kids is an especially good tool for this. You're better off self-insuring by putting that money into long-term savings. Many adults who are wage earners with significant income will also have access to group life policies, which don't require underwriting. Seeking out jobs with that benefit would probably be a better strategy for the very small number of people for whom this is an issue.

A very small policy would be of little use if they have a family to support and die young. Especially after 30 years of inflation.
I don’t see what peace of mind this gets you. Either they die before they start earning and building a family, in which case there is no need for the money, or they die after forming a family in which case you need a million dollars or so in coverage.

The policy can be increased when they are adults if it is needed, but of course we hope it doesn't come to that. The 10k benefit is something, but of course self insuring is the best way to go if this situation comes to pass and that is what we would encourage them to do. For us now, they have some assets and we will just see what is left after college to see if it makes sense to ditch the policies. It is costing us like $15/mo total so not really a factor one way or another. We have friends with kids who have juvenile diabetes, friends with kids who have autism, food allergies and our kids have ADHD. Right now ADHD is not a factor for private term health insurance but who knows about the future? 15/mo and it is one less thing to worry about.

^^^ sorry - not a factor for private term life insurance