1. 21750 POINTS
    Jim WinklerPRO
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is a great question! There are a couple of good reasons, one that is nicer to think about than the other, but both valid. The nicer one is that the cost of life insurance is a set price for whole life insurance. That means that if you purchase a policy for let us say, $5 a month for your child, they will still be paying $5 a month when they are 25. The price never changes, despite whatever health issues arise.
    The other reason is that it is unfortunate but true that children die also. And their funerals are expensive also. If it would be a hardship for you to be able to bury your child, then that $5 a month is a really good hedge. Another reason is the one I alluded to above - if there is a health issue that surfaces that could impact significantly your child's health throughout their life, then getting the affordable coverage before the issue arises is a huge blessing. Many companies have been forced by the slowed economy to increase premiums on policies for the less healthy, and to cut back on what they will accept as healthy. It's a possibility that you may never have to worry about this (God willing, and I sincerely hope so), but if there are health issues in your family lines, it might be a good thing to consider.
    You would want to look for a good independent agent in your area to look for the right policy for you. If you would like more information, please feel free to contact me, and we'll go over your questions offline. I appreciate your asking, and if you do have a newborn, congrats!!
    Answered on September 26, 2015
  2. 3998 POINTS
    Matt BenorePRO
    Founder, DenverWest Insurance Professionals, Inc.,
    First, speaking from personal experience, my son committed suicide @ age 17. The benefit paid for funeral costs and time away from work which is more than you might think.

    Second, you can get as much as $50k for $4 per month which is a great gift of life to provide to your children when they become adults.

    Keeping this simple, no one depends on a baby so be sure to have adequate coverage on yourself as the parents.

    Let me know if you have any questions.
    Answered on September 27, 2015
  3. 11773 POINTS
    Larry GilmorePRO
    Agent Owner, Gilmore Insurance Services, Marysville, Washington State
    Why should you buy coverage for a new baby? Well three basic reasons may apply as to "why"? First, if you were to lose your child, what would you do? Would you go into work on Monday? Would you and your spouse agree on the cost of the service and headstone? Sorry to be blunt. A life insurance policy lets you take a breath, decide on your service and reduces the "what can we afford to do?" in the situation.

    Second, you can purchase guaranteed insurability for your child's future when you build your policy. These options take away the insurance company's ability to say "no" to your child's future purchases, no matter their health.

    Finally, depending on your choice of policy, you get your child a foothold in their financial future. You are knocking out one of the foundation pieces to a financial future while the price is super cheap. One of many things down, more choices for other dollars later.
    Answered on October 2, 2015
  4. 5877 POINTS
    Stan Cox IIPRO
    Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
    Why should anyone buy life insurance on a newborn baby? That's probably the 1st question anyone would ask when the subject is brought up. I can think of a couple good reasons right off the top of my head. 1) should the baby die the last thing anyone would want would be to have the costs of a funeral added to the burden of grief! 2) Whole life insurance is a really great way to begin a savings fund for the child that will grow tax-free and at a much faster rate than any savings, CD or money market account. And the money can be available for college funding or a first car when the time comes!
    Answered on October 4, 2015
  5. 10968 POINTS
    Tim WilhoitPRO
    Owner, Your Friend 4 Life, Brentwood TN
    Covering a new born baby for most people does not seem natural. However, the truth is some times bad things happen and a baby can die for a number of reasons. Most people think there should be enough benefit to cover a funeral cost. But what about the emotional cost to Mom and Dad and the siblings? We are not built to bury our children at any age, life insurance benefits allow time to grieve without financial worry.

    On most adult policies have a child rider that can be added for just a few dollars and will cover all of your children with guaranteed conversion as a young adult to protect their insurability. Certainly a cash value plan, like whole life insurance, as above mentioned several times is an option as well for a few more dollars. None of us know how long we have on this earth, life insurance helps the financial side of grief of your loved ones regardless of the person's age.
    Answered on October 9, 2015
  6. 1492 POINTS
    Jeff DavisPRO
    Insurance Advisor, Lordship Insurance Services, California
    This can be a very unpleasant conversation for parents to consider because most people view insurance as something that covers death. But insurance can do more than provide a death benefit.

    For starters, a newborn child will qualify for the lowest premium possible. A parent can get them a whole life policy and lock in the rate for the rest of their lives. This means that age 40 the child will be paying the same premium as they did when they were a child.

    In addition to locking in a policy price, when you insure a child you eliminate the possibility of them becoming uninsurable at a later date. Sometimes children are born healthy and their health changes when they get older. It is always best to get insurance while you can because the future is uncertain.

    You will not hurt your child by insuring them early. Ultimately it will probably help them.
    Answered on November 29, 2015
  7. 63333 POINTS
    Peggy Mace, Certified Senior Advisor (CSA)®PRO
    CEO, Outlook Life, Inc, Most of the U.S.
    Here is a testimonial. I was 12 years old when my little sister died of cancer just before her second birthday. My dad bought life insurance on all 6 of us kids when we were born. This unspeakable tragedy has extended tentacles into our lives in many ways, both good and bad. But my mom said one of the few bright moments during those dark days was that they had life insurance to pay for my sister's funeral. Had they not gotten her a policy as a newborn, chances are she may no longer have qualified (due to her cancer diagnosis) by the time they got around to it.
    Answered on February 2, 2016
  8. 616 POINTS
    Robert J Russell - Finalist for Broker of the Year 2015
    Broker Owner, InsuranceAgentsSelling.com, United States (Most States)
    Life insurance on a newborn is the cheapest that it will EVER be plus once you start a life insurance plan, you are locking in that rate forever! And the cash build up if you are putting enough in will blow your mind!! Let me show you how it works...
    Answered on February 23, 2016
  9. 1976 POINTS
    Ronald HinchPRO
    Regional Marketing Director, Capital Choice Financial Group,
    Never buy a life insurance policy for a new born baby or young kids! And never be talked into buying a whole life insurance policy as a savings plan for children. It is a very poor investment! Now, I am not saying the newborn should not be covered. Instead it should be covered as a rider on the parents term policy and should be around $10,000 to $15,000 max because it is only for burial expense. You must first see that you and the family have adequate protection on your own lives first and should cover death, debt, income replacement, and education for the kids if needed. At the same time, it should be a priority to get out of debt, pay off mortgage, and invest in company 401ks or personal IRAs. The need for life insurance is temporary until the family becomes debt-free and financially secure with their investments.
    Answered on April 7, 2016
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