The Need For Child Life Insurance Is Sometimes Not Clear.

Should the kids be covered by a Child Life Insurance Policy?
If so... how much coverage is enough?

Let's start our discussion with the question...

Should you buy child life insurance on the kids?

As discussed previously on the "Life Insurance" page of this website... the primary need and purpose of life insurance is to protect your family from the loss of their most important asset.

Your family's most important asset is... Your ability to make money and provide a continuing income flow for them.

On the other hand... if you already have enough assets to be able to provide enough cash flow for your dependents in the event of your death... you may not need life insurance at all.

Most of us are not so fortunate.

So... given the fact that the primary need for life insurance is to protect the family against the interruption of cash flow.

And, since the death of a child generally does not diminish cash flow... it could be argued that there is little need to insure the kids by buying child life insurance.

But what about funeral expenses?

The cost of a funeral today is very expensive. Probably averaging somewhere around $10,000.

Therefore... it does make sense... if you would be hardpressed to come up with $10,000 to pay for a funeral... that you obtain life insurance protection on the kids in an amount adequate to cover funeral costs.

My recommendation is that you look for a quality affordable term life insurance policy with which to insure both yourself and your children.

Many of todays policies have "child riders" that can be added to the standard adult policies.

These riders are normally very inexpensive. Some policies will cover all current and future kids via the one rider.

Some will even do so for a fixed premium... regarless of the number of children you have or will have.

In addition... some riders will also guarantee a future individual policy to the covered children (when each child attains a certain age)...regardless of their health.

Normally... the amount of guaranteed future coverage is spelled out in the rider. This feature could be very important for a child with certain health issues.

As a parent... when you purchase a quality term life insurance product which has such provisions in their child coverage rider.

Then what you have done is... set your kids up so that they will be able to obtain life insurance protection of their own... regardless of their health.

Click here to read a very important discussion about insurability.

You have... insured their insurability... for an amount equal to the guaranteed future policy amount.

Good job... mom and dad!

"Because It Matters"... Jim

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