Life insurance for children is something that most people would think is a stupid idea. However, if you have a lot of money, it is something that can be really useful for them down the road. The earlier you start with this kind of insurance, the better that it is for you. Life insurance works in a way where you get more for your money the longer that you are contributing to a plan. Therefore, since kids have a lot of time, it can be good for them.
- Although many insurance agents state that buying life insurance for children is a smart financial move, many others caution against it.
- Other matters should come first before thinking of life insurance for the children such as saving for retirement, saving for their education, and having adequate emergency saving fund.
- One way to buy life insurance for children is to buy term life insurance. This is regular life insurance but has a minor as kick in.
“The question of whether to buy life insurance for children sparks strong debate about the value of such policies.”