Comments on: Is Life Insurance for Kids a Waste of Your Money? http://www.americanconsumernews.com/2008/09/is-life-insurance-for-kids-a-waste-of-your-money.html Helping Smart Shoppers Save Sat, 20 Mar 2010 21:11:39 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Laura http://www.americanconsumernews.com/2008/09/is-life-insurance-for-kids-a-waste-of-your-money.html/comment-page-1#comment-5274 Laura Thu, 15 Jan 2009 18:20:07 +0000 http://www.americanconsumernews.com/?p=1545#comment-5274 I agree that it is a good idea to purchase a whole life policy when your children are young. First of all it has a death benefit. Also, there is cash value that accumulates each year and you have access to it if you ever need it. The premium is lower when they are young and remains the same for the life of the policy, unlike a term policy where the premium increases each year and by the time you are of age and need the death benefit you can't afford the premium. Most children are insurable at a young age but as they get older, serious illnesses could cause them to be uninsurable. If you do purchase a policy be sure and purchase it from a mutual life insurance company which there are only a handful of. Mutual companies do not have stockholders. Their policy holders own their policies and they pay dividends to the policy holder every year (on whole life policies). How do I know these things? I work for a mutual insurance company that has been in business for 152 years and is ranked the number one company in its field (also for the past 15 years). In 2008 when the economy was tanking, our policies were still paying the same dividend return of approx 7%. I don't know of any investment or savings plan that had that kind of return at that time. Please check out your insurance company before you purchase. I agree that it is a good idea to purchase a whole life policy when your children are young. First of all it has a death benefit. Also, there is cash value that accumulates each year and you have access to it if you ever need it. The premium is lower when they are young and remains the same for the life of the policy, unlike a term policy where the premium increases each year and by the time you are of age and need the death benefit you can’t afford the premium. Most children are insurable at a young age but as they get older, serious illnesses could cause them to be uninsurable. If you do purchase a policy be sure and purchase it from a mutual life insurance company which there are only a handful of. Mutual companies do not have stockholders. Their policy holders own their policies and they pay dividends to the policy holder every year (on whole life policies).

How do I know these things? I work for a mutual insurance company that has been in business for 152 years and is ranked the number one company in its field (also for the past 15 years). In 2008 when the economy was tanking, our policies were still paying the same dividend return of approx 7%. I don’t know of any investment or savings plan that had that kind of return at that time. Please check out your insurance company before you purchase.

]]> By: Byron Udell http://www.americanconsumernews.com/2008/09/is-life-insurance-for-kids-a-waste-of-your-money.html/comment-page-1#comment-4618 Byron Udell Tue, 09 Sep 2008 15:52:39 +0000 http://www.americanconsumernews.com/?p=1545#comment-4618 Do kids need life insurance? Not necessarily. It's not a horrible product to buy. However, what I recommend is that parents look at their life insurance policy and see if they need additional insurance before purchasing life insurance on their kids. If you have the correct amount of insurance and have extra money then a child life policy isn't a bad thing. However, if you don't have the extra money, I would suggest purchasing additional insurance on yourself before your children. Do kids need life insurance? Not necessarily. It’s not a horrible product to buy. However, what I recommend is that parents look at their life insurance policy and see if they need additional insurance before purchasing life insurance on their kids. If you have the correct amount of insurance and have extra money then a child life policy isn’t a bad thing. However, if you don’t have the extra money, I would suggest purchasing additional insurance on yourself before your children.

]]> By: Katharine http://www.americanconsumernews.com/2008/09/is-life-insurance-for-kids-a-waste-of-your-money.html/comment-page-1#comment-4614 Katharine Mon, 08 Sep 2008 14:40:14 +0000 http://www.americanconsumernews.com/?p=1545#comment-4614 I can't see how it would hurt to have a small amount of insurance on your children. Assuming the worst, wouldn't you want burial costs covered? And when children get to be in college, and taking out loans, shouldn't the parents take out insurance enough to cover those loans? I can’t see how it would hurt to have a small amount of insurance on your children. Assuming the worst, wouldn’t you want burial costs covered?

And when children get to be in college, and taking out loans, shouldn’t the parents take out insurance enough to cover those loans?

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