Ed Hinerman On Life Insurance

Life insurance for children! Rather not go there?

July 23rd, 2007

In a post on March 4 of this year, Children’s life insurance. Keep it in perspective!” I broached the sensitive subject of life insurance for your children. Most parents would rather just turn their back on the whole subject. How morbid a thought? Quite honestly it seems that many parents think they may be tempting fate by purchasing life insurance for their child. Never mind that they have life insurance on themselves with no concerns that it will lead to their own demise.

My point in that post, and I believe one that is worth revisiting, is the idea that life insurance on your children is only slightly about them dying prematurely, and almost all about locking in their insurability for their adulthood.

Let’s put this in perspective. What if I told you that for $250.00 total, a one tme payment, you could ensure that your child could purchase 100,000 life insurance at fair rates when they turn 23, no matter what their health is. Let’s pretend for a moment that the guaranteed insurability is the only benefit. Do you think it might be worth considering? I recently wrote a $100,000 policy on a 21 year old whose cancer, diagnosed at age 16, was in remission. He wasn’t uninsurable, but the rates were astronomical for a 21 year old. If he would have had a guaranteed insurability rider from a children’s policy, his need for insurance at age 21 would have cost 1/3 of what he now pays.

So, take it out of the morbid context of the thought of your child dying. Bottom line is that you can, for very little money, purchase them a valuable asset for their future. Read the March 4 post for more detail.

Related Posts

• Children’s life insurance. Keep it in perspective!
• Why carry life insurance on your children?
• Parents and Grandparents! Life insurance for children and grandchildren is a gift, not a jinx!
• Life insurance for children!
• I Found Someone More Ignorant About Life Insurance Than Suze Orman!

Entry Filed under: cancer, insurance, life insurance