1. 3998 POINTS
    Matt Benore
    Founder, DenverWest Insurance Professionals, Inc.,
    Before I can answer your question of how much Life Insurance for your child I really need to know what the purpose is.  I recently helped a client who wanted to put $100 into a life insurance policy per month so it grows cash value plus providing a death benefit.

    First you need to know some of the "rules" we have in the insurance world revolving around children.  Insurance companies will need to know how much insurance the parents have first.  You see, no one depends on the children so if parents have no insurance, they it will be difficult to convince insurance companies to give a policy on the child.  The parents usually need to have about 4x the amount the kids have.

    Because the cost of insurance is so low on most children, it can be difficult to put a lot of money into a policy without creating a MEC, modified endowment contract.  This means that when you take money out of the policy, you will have to deal with taxes.

    If you are just looking for a burial type policy which you would like to give to your child as a gift when they are older, perhaps when they have a family, you might just start off with a $50k or so type of policy.  Underwriting is usually minimal in most cases.

    You can get insurance for your children starting at $4 for $50k of death benefit, basically the same cost you would pay if you added them to your insurance as a child rider.  Contact your broker for more details or contact me.
    Answered on January 14, 2014
  2. 616 POINTS
    Robert J Russell - Finalist for Broker of the Year 2015
    Broker Owner, InsuranceAgentsSelling.com, United States (Most States)
    That depends on the purpose of the life insurance. If you are getting it for cash accumulation like college fund then you will want to do a premium search. That means you will need to figure out how much you will need for a 5 year college amount then let the policy solve for the amount needed to get you that dollar amount.

    For death benefit goal - you will need to make sure that the parents first have life insurance to have it approved through underwriting. Call me if you want a more specific answer.
    Answered on March 1, 2016
  3. 2775 POINTS
    Joe 'Gravy' Graves
    Owner, I Hate Buying Insurance, Nashville TN
    I'm going to assume that you want it for the unthinkable... Death... not college.

    The TV & Radio talkers often say, "OH... you don't need to have more than what you need for final expenses."

    I'm a dad... If one of my kids passes... I WON'T FUNCTION FOR 2-3 MONTHS... I DO NOT want to profit off my kids.... Yet not getting out of bed for months, flying my family across the country, etc... Look... I'm saying this as a DAD who happens to be in the insurance biz...

    Love your kids... Buy what you can afford and fits the underwritting guidlelines of the carrier....
    Answered on March 7, 2016
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