I'm kind of confused why a parent would insure a child. A child costs money and doesn't create income. It feels morbid, but as a cost issue your finances would improve on thr death of a child over time, so the insurance doesn't make sense to me. It's completely different than if I die and my policy is used to take care of my kids.

I've read that perhaps a better rate for the kid when they become an adult, but I doubt that's hugely beneficial considering all other factors.

This post was edited on 5/9/23 at 1:07 pm

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Posted by meansonny

ATL

Member since Sep 2012

25932 posts

Posted on 5/9/23 at 1:13 pm to Teddy Ruxpin

quote:
I've read that perhaps a better rate for the kid when they become an adult, but I doubt that's hugely beneficial considering all other factors.

Lots of people are uninsurable.
Lots of people are expensive to insure.

Once you've checked off your top 50 financial goals, guaranteeing the insurability of your kids is not a bad thing.

My brother smokes, has had DUIs, and is underweight.
A policy when he was a kid would have significant value now that he has children of his own (he has coverage, but some carriers have declined him).

I agree. There should be little to no priority on it.

I don't have life insurance on my kids (other than the $25,000 provided by my employer for about $20/yr). I don't quite max out my HSA per year. I haven't hit that priority level financially speaking to do that for my children.

This post was edited on 5/9/23 at 1:35 pm

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Posted by Epic Cajun

Lafayette, LA

Member since Feb 2013

32830 posts

Posted on 5/9/23 at 1:25 pm to Teddy Ruxpin

quote:
I'm kind of confused why a parent would insure a child. A child costs money and doesn't create income. It feels morbid, but as a cost issue your finances would improve on thr death of a child over time, so the insurance doesn't make sense to me. It's completely different than if I die and my policy is used to take care of my kids.

I've read that perhaps a better rate for the kid when they become an adult, but I doubt that's hugely beneficial considering all other factors.

I have a 25k policy on my daughter, at age 26 she can convert it to a 100k policy without having to pass any sort of health screening. So in the event that something occurs before then and she's uninsurable, at least she has this 100k policy.

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