Dallas Life Insurance
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Question by Paige: Should a person without children get life insurance?
Is life insurance important to a person without children? Could they just save enough in life to pay for the funeral costs and other expenses.
I can see reasons like you have a disabled spouse, but in general do you think it is necessary or just a useless expense.
Best answer:
Answer by Jamie K
Yes because your family will need to have it to pay all of the costs
Know better? Leave your own answer in the comments!
Question by Megan S: Why do parents take out life insurance policies on their children?
I just got an ad for a “Gerber Life Grow-Up” plan as an insert in my morning paper. The whole idea weirds me out big time! The ad claims that a child will “have trouble getting a policy on their own once they turn 18″. It doesn’t make any sense to me because my husband at age 25, just bought a rather large policy to supplement the policy he gets from his employer with few questions asked. Its also a bad financial investment too, several financial experts in Money, Kiplinger’s, etc. have said that its not worth the money anyway.
Am I the only one that is creeped out by child life insurance policies?
Best answer:
Answer by Kathryn
They use the “trouble getting a policy” line as a scare tactic. As you know from first-hand experience, young healthy adults can easily get life insurance. There is no reason to buy life insurance on someone who does not have dependents.
Know better? Leave your own answer in the comments!
So many people urge parents to keep emotions out of life insurance buying decisions, and look at things from a financial point of view … and therefore say that life insurance for children is completely pointless, since children don’t have any income to be replaced or debts to be paid after they die. Yet, life insurance for children is a little more complex than that … today we look at how to buy smart while still listening when choosing life insurance for children.
Could you go back to work?
Speaking for both myself, and the majority of parents I know, if one of my children died I would be literally devastated. I would not be able to think about going back to work, and I’m sure at the time it happened it would seem that I wouldn’t be able to work forever. Income protection insurance might seem more appropriate if you are ‘unable to work’, but most policies cover only injury and illness … not grief. This is one major benefit of taking out life insurance policies for your children. The benefits don’t need to be enormous, either – just enough to take the pressure off you.
Pre-existing conditions
Thankfully, most kids are pretty healthy! There are some life insurance policies available for children with ultra-low nominal rates and pretty tiny benefits – these carry the advantage of ensuring that if your child develops any conditions in their teenage years or early adulthood that would exclude them from getting a life insurance policy, they are already in the system and have guaranteed insurability. Note that, in contrast to the option below, to give that protection of guaranteed insurability the policy must be in the child’s own name.
Is children’s cover an option on your own life insurance policy?
With some life insurance companies, you have optional children’s cover available when you take out a normal life insurance policy. And if you have children, you should definitely have an ordinary life insurance policy! These options come with minimal extra premiums and quite small benefits, but do allow you some time off work when necessary.
Paying for funeral costs
When a child dies it is a highly emotional event … nobody wants to struggle through with a cut down funeral due to high costs. You want to do your child justice and remember them in a joyful and vibrant way. Life insurance can help alleviate funeral costs and let you do justice to your child’s memory.
Article from articlesbase.com
Some parents may feel coerced into getting a life insurance policy for their children by shrewd insurance salesmen. Others may feel obligated to do so when they get one for themselves. But, the question – life insurance for children: is it a need? – will depend on the financial circumstances of the parents and what benefits the child will accrue by having an insurance policy in his or her name. Just like an adult insurance policy, there are two main types of life insurance policies that can be taken for children:
1. Whole life insurance
2. Term life insurance.
A children’s life insurance policy is worth having for a child with a genetic medical condition as it gives security at later stage of life. Most of the life insurance companies wrongly suggest the parents that child’s life insurance policy is a must. They try to misguide the parents and sell the policies. In fact, it depends on the type of policy. So, don’t believe in this kind of propaganda. The real reason why one should have life insurance policy there should not be future insurability problems.
This will result in the case of a family history of medical conditions like heart disease or diabetes, which a child can inherit. In such a case, getting life insurance policy when they are earning could be a problem or work out too expensive. On the other hand, if a parent has already taken an insurance policy for such a child, then continuing it in adulthood will be easier. In such cases, the cheapest form of insurance will be a twenty year term life insurance with the option of renewing it to a whole life policy at the end of the term.
Obviously, parents will not be able to use any kind of benchmark to calculate how much their child will need by way of insurance. In such a case, using a parent’s salary level is the obvious way to go. If parents decide to go in for a whole life policy, then the child can continue with the policy even after the age of 18. Taking a term life insurance does not guarantee future insurability for the term life insurance has a fixed period. In fact, a term life policy for a child will not amount to anything when it expires. This is especially true for a majority of kids will probably outlive the term life insurance their parents take.
Term life insurance amounts can be used to pay for funeral expenses of the child or any outstanding medical bills. Some term life policies even make payments if the insured child gets disabled during the term. While term life will not allow a person to borrow against the amount, it is useful to repay outstanding debts or even pay for therapeutic costs for parents traumatized by the loss of a child. Of course, most parents will not want to consider the possibility of losing their child and hence may prefer not to take a term life policy.
Whole life policy has so many advantages particularly for some one whose family has genetic disorders or health problem that the child can suffer from in his or her future. Money can be used for medical needs. Unlike the term life policy, whole life policy will allow the parents to borrow money for short term expenses like school fees. Most of the financial experts feel that life insurance is not a must for children as they are the nominees and hence beneficiaries on their parent’s insurance policies.
In fact, instead of paying premiums on insurance policies, the amount can be used to open a savings account for children, which basically amounts to the same thing. This money can be then used for a child’s college expenses, medical expenses and such. With medical science improving in leaps and bounds, most people remain insurable well past the age of 80. The chance that a child will become uninsurable is relatively small, so parents need not really worry about taking life insurance for them.
Investing in mutual funds or annuities can earn better returns that parents can use for their child’s future educational or other needs. So, the advice that most experts will offer is not to do something because everyone else is doing it. Consider your family’s unique circumstances and take a life insurance for your child only if you deem it absolutely necessary.
Article
by David Livingston of EQuote, who is a specialist in everything life insurance.
For more information on life ins
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life insurance, visit his site today.
Article from articlesbase.com
There has been a long debated issue whether or not purchasing whole life insurance for children is a wise decision. This is because adult insurance buyers are looking for an insurance policy which will prevent any financial difficulty in case of an untimely death unlike in the cases of kids. But some insurance experts are speaking out that children should be insured for their own future’s sake. Because of this, there are various reasons why people purchase insurance for their kids. Here are some of the different reasons why they have decided to invest on their kids insurance.
One of the major reasons why parents purchase insurance for kids is because they consider it as an investment. But this is one controversial issue which has its fair share of supporters and opponents. People who are opposing this state that premiums and insurance charges wear down the investment returns. Another reason for purchasing insurance for children is because of educational needs. This is due to the fact that the cost for education continues to rise. As such, several parents deem that investing in such insurances can produce a good way their money can be saved in order to fund for the education of their children.
Convenience is another reason why parents buy life insurance policies for their kids. Aside from the fact that a family package can be an attractive deal, purchasing an insurance policy under this arrangement can produce a lower price. In addition, parents are given the extra comfort knowing that everyone in the family has been insured.
Future insurability can also be a reason behind this. This is so that whatever health condition their child will get in the future, they are comforted by the fact that their kid is covered by insurance. This decision is usually common among families wherein there are prevailing hereditary diseases. In addition to this, getting insurance for their child is one way their kids can be able to have a venue where they can borrow money to purchase properties. During which case, the policy will act as a collateral for the loan. Because of this, parents purchase early insurance since premiums are more affordable.
Although getting a whole life insurance for children can be a hard task, it is the responsibility of a parent to make wise decisions regarding his or her child. And frankly, getting insurance for your child will help you become more at ease with the thought that no matter what happens to your child, he is covered.
I did a little research for you. Visit here for more information and resources on children whole life insurance. A simple, easy to understand life insurance guide and resource: http://www.WholeLifeInsuranceAdvice101.com
Article from articlesbase.com
