1. 3998 POINTS
    Matt BenorePRO
    Founder, DenverWest Insurance Professionals, Inc.,
    Life Insurance is usually designed based on need.  The recovery or protection against a lost asset or income, preservation of your estate from taxes, etc.  The need for children to have life insurance falls into 2 categories:

    burial expenses....I recently lost my son, 17, which we had coverage on him as a child rider, $10k which paid for the service/cremation, and the lost income from a month out of work.
    As a gift.  As the cost of insurance is low for children, you can set up a life insurance policy designed to build cash value to use later in life.  You not only have the benefit of the death benefit, but more so the benefit of using the life insurance as an asset to draw from in the future.  With the compounding you get, the growth can be substantial if designed correctly.
    Answered on March 5, 2014
  2. 7479 POINTS
    Steve KobrinPRO
    President, The Firm of Steven H. Kobrin, LUTCF, 6-05 Saddle River Rd #103, Fair Lawn, NJ 07410
    No one likes to think about the death of a child. These days, especially in the United States, infant mortality is much less of an issue than it was generations ago. But things happen. I have had many elder clients who automatically bought a burial policy every time a new grandchild was born.

    Insurability is also a concern. Many medical conditions develop later in life. These include diabetes, high blood pressure, and cancer. Any one of these could make it impossible or very expensive for the child to buy a policy as an adult. In addition, hobbies such as scuba diving or rock climbing could also make it very expensive.

    Another consideration is wealth accumulation. If you give a strong whole life or universal life policy a lot of time, it could accumulate a significant amount of cash. A policy issued when the child is age 6 could provide enough money to buy a house or a business at age 56.

    That would be quite a gift, wouldn't you say?
    Answered on March 5, 2014
  3. 37376 POINTS
    David G. Pipes, CLU®, RICP®PRO
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    The basic reason for life insurance is love.  Do you want your children to pay more or less than you for life insurance?  Do you think they will ever need life insurance?  Would their premature death create financial problems?  Do you want to protect their ability to buy life insurance?  Do you want a vehicle that will help them accumulate cash for the future? 
    One hundred years ago, parents across the USA bought life insurance on their children.
    Answered on March 5, 2014
  4. 712 POINTS
    John Cole
    Recruiter/Manager, Cole Insurance Investments, Charlotte N.C.

    Children are not exempt from life insurance for many reasons. First life Insurance is based on age health and risk, children can be insured very cheap because in most cases they are healthy and are insurable. Policies can be structured early on to pay for college tuition,and living expenses such as a car to drive back home or buy a home around the community they go to college at. Which gives them a head start in their career being the home would go up in value while in school,And has a high sales ratio because new students are moving in every year.These are just a few reasons to mention the child would still have a retirement income at age 65 and a death benefit God forbid if something happened to cause death. In my studies this is what the rich do. John Cole Virtual Financial Group Recruiter/ Manager Understanding Living Benefits v/s Life Insurance- Annuities. #colemarketing                                                            
    Answered on March 14, 2014
  5. 4249 POINTS
    Gary LanePRO
    President, Lane Independent Agency, Southern California
    You never know when life insurance will be needed. Things happen with no warning. Most importantly, when a child gets life insurance, they lock in the very lowest rate possible, for the rest of their life! With permanent life insurance, that rate and premium build up over time, giving them access to high amounts of retirement funds, or cash to access. Do it early! GARY LANE. garylane@cox.net. 714 422 9616. Thank you.
    Answered on July 17, 2015
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