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Posted on 4/30/19 at 10:18 am to ItzMe1972
quote:
But if it gives you peace of mind.....
Can’t imagine collecting on a $25k life insurance policy after my kid dies would make me feel any better.
Posted on 4/30/19 at 10:25 am to 632627
quote:
Can’t imagine collecting on a $25k life insurance policy after my kid dies would make me feel any better.
Following this logic, why carry life insurance on anyone?
Posted on 4/30/19 at 11:00 am to LNCHBOX
Because you are dependent on their income. It's the only reason to have life insurance. If I die, the money my wife would get from my life insurance is not to make her less sad. It's to help her pay the bills without my income.
Posted on 4/30/19 at 11:03 am to LNCHBOX
(no message)
This post was edited on 10/19/21 at 1:40 pm
Posted on 4/30/19 at 1:07 pm to Spock
quote:
It's to help her pay the bills without my income.
What do you think a small policy on a child is for? Funerals aren't exactly cheap, and the last thing I'd want to worry about if my daughter dies is having to pay for that unforeseen expense.
Congrats to you if a 5 figure bill is nothing for you.
ETA: The bottom line is they cost almost nothing. There's no reason not to have it you can afford it.
This post was edited on 4/30/19 at 1:08 pm
Posted on 4/30/19 at 1:26 pm to LNCHBOX
quote:
There's no reason not to have it you can afford it.
I think most people are arguing the point that if you can afford to buy a life insurance policy, you can afford to use that money for something more useful.
Posted on 4/30/19 at 1:31 pm to bawbarn
quote:
if you can afford to buy a life insurance policy, you can afford to use that money for something more useful.
That makes no sense. Why is it either/or?
Posted on 4/30/19 at 1:46 pm to bawbarn
quote:This line of thinking makes sense to me if you took emotion completely out of the situation.
I think most people are arguing the point that if you can afford to buy a life insurance policy, you can afford to use that money for something more useful.
If my child dies I can guarantee my wife is going to have some serious depression issues. She has fought depression before, but the loss of a child would be cataclysmic. She currently works, I could not guarantee that she would continue. I think having 25k to help connect the time from death to getting to a new sense of normalcy is worth it.
Posted on 4/30/19 at 2:06 pm to TigerTatorTots
I signed my son up for Gerber life. He'll take over the policy when he comes of age. I pay $11.66 per month, as will he until he passes hopefully at the old age of 134.
Posted on 4/30/19 at 3:22 pm to Golfer
quote:
Or you could just put the $75/mo into a 529 for the 10 years. In 18 years at a 6% return, you've got $20k.
It doesn’t cost even close to $75/mo so that’s not a fair comparison. I pay around $9/mo. Have policy grouped up with rest of insurance at State Farm
Posted on 4/30/19 at 8:18 pm to MoneyTime
From a strictly financial standpoint, it doesn’t make sense. However, I can definitely understand people wanting this for the peace of mind factor which is huge for a lot of people.
Posted on 4/30/19 at 9:51 pm to LNCHBOX
quote:
What do you think a small policy on a child is for? Funerals aren't exactly cheap, and the last thing I'd want to worry about if my daughter dies is having to pay for that unforeseen expense.
Congrats to you if a 5 figure bill is nothing for you.
If a couple with a child does not have 5 grand on hand for emergency situations they have personal finance issues that need to be fixed before thinking about purchasing a specialty insurance product.
Posted on 4/30/19 at 9:58 pm to EA6B
quote:
If a couple with a child does not have 5 grand on hand for emergency situations they have personal finance issues that need to be fixed before thinking about purchasing a specialty insurance product.
Well, I'll be sure to take financial advice from someone that doesn't know what 5 figures means.
Posted on 4/30/19 at 10:05 pm to ItzMe1972
quote:
The chances of a newborn dying are very remote.
Lmao what?
Posted on 4/30/19 at 10:16 pm to Spock
quote:
It's the only reason to have life insurance.
Well, it's not the "only" reason. It can be used as a wealth protection and estate planning tool.
It is the main reason, though. I get having a small burial protection plan and we did have the Gerber "throw up" policy on our children. From a pure dollar cost, it's not a great investment.
For any younger person, life insurance is betting against yourself. If you buy a right size, right length (
) term policy, that's probably the optimal product. Whole life can also work as an asset planning, estate/tax strategy, but it's a tool, not a true investment, IMHO. And it should be part of some broader package of tools, not absently stumbled into or added onto without a full A/B analysis with other tools/products.
Posted on 4/30/19 at 10:21 pm to TigerTatorTots
There is only 1 reason to buy a kiddie life insurance policy.
That is to protect future insurability.
The math for the life insurance policy itself doesn't make sense. Average life expectancy today is 78? By the time a newborn is 78, the average expectancy might be 88. And as far as I understand... those Gerber policies are paid into for the entire life.
If your family has a history of diabetes, genetic diseases, alcoholism, smoking, and other white trash nonsense... then adding a guaranteed insurability rider can be argued as a good idea. Otherwise, it is the masterbation of insurance policies.
If you have a hankering for insurance, get yourself an accident/health/cancer policy. Your ability to earn income is more likely an issue than the death of an infant. And you are more likely to have medical issues than die young.
That is to protect future insurability.
The math for the life insurance policy itself doesn't make sense. Average life expectancy today is 78? By the time a newborn is 78, the average expectancy might be 88. And as far as I understand... those Gerber policies are paid into for the entire life.
If your family has a history of diabetes, genetic diseases, alcoholism, smoking, and other white trash nonsense... then adding a guaranteed insurability rider can be argued as a good idea. Otherwise, it is the masterbation of insurance policies.
If you have a hankering for insurance, get yourself an accident/health/cancer policy. Your ability to earn income is more likely an issue than the death of an infant. And you are more likely to have medical issues than die young.
Posted on 4/30/19 at 10:44 pm to htxtigers
quote:
Lmao what?
The total of all under 18 child deaths in the US are around 0.5%.
I’d venture that number gets cut in half again, at least, for the socio-economic group that purchases Gerber Life policies.
Posted on 4/30/19 at 10:46 pm to Golfer
Thank you for explaining, that’s all I needed. I came here asking a question and just got downvotes instead of answers
Posted on 5/1/19 at 6:05 am to TigerTatorTots
Most replies on here are strictly financial based. They are taking away the emotional side of things. Which for most investments I agree with their logic.
In this instance, I think it is acceptable to let emotion play in. You will have so much going on if this policy was ever needed and the peace of mind of not worrying about the financial side of it would be huge in that moment.
I did not use the Gerber policy though. Check with your insurance agent, ours offered a much more competitive plan/price than Gerber.
In this instance, I think it is acceptable to let emotion play in. You will have so much going on if this policy was ever needed and the peace of mind of not worrying about the financial side of it would be huge in that moment.
I did not use the Gerber policy though. Check with your insurance agent, ours offered a much more competitive plan/price than Gerber.
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