Pundits almost universally agree. If you’re an adult with dependents, you should have some sort of life insurance. Having to deal with a premature death is hard enough. Nobody wants to deal with a something that tragic and then the money issues that surround it.
Some people take life insurance a step further and buy it for their underage children, while others think such coverage is a waste of money. Which side is right?
There are arguments both for and against insurance for children.
On the pro side, there’s funeral expenses. It costs upwards of $10,000 for a funeral today, perhaps even more. Cremation isn’t cheap either. Most people don’t have that much cash kicking around.
It also allows parents to take weeks off of work to grieve, without having to worry about money.
And finally, life insurance for kids can be quite affordable. It can also carry over until they’re adults, when they might discover they’re unable to get life insurance.
But there are also a number of reasons many are opposed. There’s a very small risk a healthy child will pass away. Children are liabilities, and it doesn’t make sense to insure something that costs a parent money. Many workplace benefit plans also give parents generous leave plans if a child dies.
And when it comes to insuring the ability to get insurance later, many feel it’s silly to buy insurance on a contingency, especially one that isn’t very likely to happen. Most people can get life insurance. They might just have to pay more.
Ultimately, insurance comes down to emotions. If a parent feels much more secure knowing junior is insured, it’s probably worth the premiums. If not, there are wiser ways to spend your money.
