Whole Life Insurance for Kids??

[Anonymous]

I didnt' come across any similar questions/issues from my quick research of DCUM....that said, what are the pros and cons of getting whole life insurance for the kids (ages 2 and 8) since after reams of marketing from Gerber and Globe, respectively I'm finally giving it some thought, please enlighten me....TIA!

[Anonymous]

We just covered this literally about 3 days ago so you must not have looked very hard.

[Anonymous]

11 topics down from the top on Money and Finances is the thread where just discussed this. Please look a little harder. You remind of my daughter when she cannot find her shoes, even though they are sitting right in the closet.

[Anonymous]

Former agent. Not a good investment vehicle at all in my opinion..term life is usually better than whole life for anyone. The purpose of getting life insurance for children is not for investment purposes or savings but to be able to cover funeral expenses in the unlikely event insurance is needed.

[Anonymous]

Losing a child is an emotional/personal/family tragedy - not a financial one. Don't get insurance for them.

[Anonymous]

Anonymous wrote:Losing a child is an emotional/personal/family tragedy - not a financial one. Don't get insurance for them.

Not OP, but as you can imagine, I feel pretty mixed about the idea, like most parents. Over the last 1.5 years, I watched my friend and her family grieve since her elementary-schooler unexpectedly died. To say they have barely held it together is understatement. This, unfortunately, has affected their (her and her husband's) focus on at work. Fortunately, they have sympathetic employers, but it is an extraordinary emotional experience that really negatively affects most people's job (and therefore financial security), at least for some period thereafter.

I think work has helped them by allowing them to put their energy somewhere, on the other hand, this seems like bad time for them to worry about the mortgage.

Made me see the whole thing differently.

[Anonymous]

whole life insurance is a bad investment idea. period.

It usually locks you into a term that is especially punative if you try to exit in the first few years, and is extremely lucrative for the "advisor" who sells it. Also it guarantees a return that is usually below the rate of inflation or other similar investments like bonds. So you are actually losing money over time.

to the person who is confusing it with how to pay the mortgage if they had a loved one pass away, that is exactly what the marketers of these products pray on--ignorance.

If you want to ensure that you have $$ if a tragedy happens and you have to stop working, just save money. Or have TERM life insurance and STD and LTD on the earning members of the family. But children don't need life insurance, and no one needs whole life insurance.

[Anonymous]

It's a total waste of money. Just save the same amount you'd pay for a premium in an account for the child.

[Anonymous]

To OP, do you know why people buy life insurance? Because they(mostly parents) have obligation to take care of their family in care they die. What obligation do kids have? unless you plan to kill your kids to collect insurance.

[Anonymous]

No comment on whether it's a good investment, but I was always under the impression that these were small plans that would basically cover funeral expenses. At least, I know my mom had a plan like that on me when I was a kid.

[Anonymous]

whole life = no

term insurance on kids = only if you are going to cover/co-sign their student loans, in which case get it for the term of the loan and for the amount of the loan. Even if your kid dies you still have to pay back the student loan so term insurance in that case is a good idea.

The Gerber marketing thing is just that, marketing -- it's for families who couldn't afford to bury their kids if they died. If you are on DCUM you don't need insurance like that.