What's the deal with life insurance for children?

[JackBondLove]

NOTE: This is a it off-topic, but since retirement planning deals with life insurance to some extent, I have decided to put it here.

I just got a ad letter for children's life insurance. Except for funeral expenses, I can't think of a valid reason why a child would need life insurance. What's the deal? Is it just a way for insurance companies to expand their market, even if it questionably ethical to even offer it?

[AZNoName]

I wondered the same thing. A term life policy makes no sense, but if its something like a Gerber plan which is whole life, eventually you could borrow from it (for college expenses perhaps?)

[8forme]

We have life insurance through work on our children. It is only for 10K each and would be used to cover funeral expenses. That is why we have it. I cannot bear to think of ever having to use it.....but don't want to be in the situation of that happening and not being able to pay for a proper burial.

[mountanddo]

I used to have life insurance on my children for the purpose of funeral expenses. It isn't offered at where I work currently but I don't know if I would purchase any more than 5k. I probably feel different than most in that I think funerals are a waste of money. It doesn't matter whether you are put in the earth in a wooden box or a 20k casket lined with silk and satin. I think funeral homes take advantage of people in their most vulnerable state and guilt them into spending more money than is neccesary to provide a proper burial for your loved ones. Just my .02.

[keepsmiling]

^agree 100%

[SweetGeorgia]

My mom once told me that although smarty-pants financial people see no value in children's life insurance, she always had it because if something happened to me she knew she wouldn't be able to go back to work right away.

That kind of makes sense to me. My aunt lost her 28-year old son last year and it broke my heart that she couldn't really take time off work to deal with it. She could probably have used some counseling, too.

[mountanddo]

My mom once told me that although smarty-pants financial people see no value in children's life insurance, she always had it because if something happened to me she knew she wouldn't be able to go back to work right away.

That kind of makes sense to me. My aunt lost her 28-year old son last year and it broke my heart that she couldn't really take time off work to deal with it. She could probably have used some counseling, too.

Makes sense to me too. I can't imagine having to go back to work after the three bereavement days they give you if a child of mine died.

[goon]

Two other things not yet mentioned.

1. Some life policies also partially pay out in the case of extreme disability or dismemberment, this can help with the cost associated with that.

2. if a child gets very sick or gets cancer or something of that nature there could be a large amount of expense above and beyond health insurance coverage, some people are adverse to any monetary risk no matter how small

but in general yea... I fail to see much point in a child life policy in this day an age.

[Logan]

My mom once told me that although smarty-pants financial people see no value in children's life insurance, she always had it because if something happened to me she knew she wouldn't be able to go back to work right away.

That kind of makes sense to me. My aunt lost her 28-year old son last year and it broke my heart that she couldn't really take time off work to deal with it. She could probably have used some counseling, too.

Excellent point.