Posts Tagged ‘term life insurance’

Child Life Insurance- Do You Really Need It?

Posted February 16, 2009 by Bernz

No one wants to think about the death of those close to them, especially their children. However, it is an important part of your overall financial planning to consider it. There are many insurance companies out there that tout the benefits of getting life insurance policies on your children. Many of these policies have bells and whistles that have nothing to do with actually insuring the life of the child. In many cases, these policies are not worth buying.

Most child life insurance is whole life coverage. That means that the term of the policy is indefinite. The child can take the policy with them their whole life. Whole life policies almost always include an investment component as well as an insurance component. That means that the policy builds value over time. Many insurance companies market these features as a way to save for college or other large expenses in the future. There are many better investment vehicles for these purposes, however. The premiums on whole life policies are larger than straight insurance to cover the investment piece.