Quite often, life insurance is considered to be for the breadwinners of the family and for grandparents to ensure their families are taken care of when they pass away. In truth, life insurance can benefit any human being. The question asked most is whether life insurance is worth the cost, especially for kids.
Choosing whether to get life insurance for your kids or not is a strictly personal decision, and there really is no one size fits all approach to it. For some people, it makes complete sense to purchase life insurance for kids because it can be a way to save for the future, as they can cash it out later in life, and it helps to lock them into a low rate. There is also the fact that should something happen to your child, life insurance can ease the financial burden of funeral costs, which allows you to focus only on grieving the loss.
There are also plenty of arguments as to why there are much better financial moves than life insurance. For starters, many experts argue that purchasing whole life insurance as a savings plan is not a lucrative move. You would be better off investing in a 529 plan or other investment. They can still be cashed out at adulthood, but they typically provide a much better rate of return.
Additionally, the risk of a child dying is much lower than that of an adult. It is often more important to make sure you have enough insurance first. This is not to say that it would hurt you to purchase a policy on your child, especially while you are getting your affairs in order. However, a term life policy will often be enough.
The wisest step a parent can take is to speak to a financial advisor about their individual situation, and an insurance company to understand what benefits your family might gain from having an insurance policy on your kids. We here at State Insurance Solutions are happy to help our Dallas, TX family take a deeper look into any insurance gaps or additional types you might need.
As previously stated, there is no single, simple answer to whether your child needs a life insurance policy. Each family is different and has different needs. If you are in or around the Dallas, TX area, give State Insurance Solutions a call today to get the right answer for your family.