Do children need life insurance coverage? When purchasing any kind of insurance, the consumer always needs to weigh the cost of the insurance against the potential risks. Thankfully, the risk of the death of a child is minimal under most circumstances.
Remember that the main purpose of life insurance is to cover the expenses of the surviving family members upon the death of the primary income earner. Since children do not have any dependents, logic would dictate that life insurance is unnecessary.
That is not to say that purchasing a life insurance policy for a child is always a bad idea, what if your child is earning a significant amount of income for your family as a model or an actor? This might be a circumstance were Child Life Insurance is warranted. However, as a general rule, many insurance and financial professionals agree that it is insurance you probably do not need.
There are people that look at Life Insurance for Children as a gift or annuity endowment for that child as they grow older. This way they earn some interest, and already have a life insurance policy in place that they can continue when they are adults, and may actually need it. However, most financial advisors agree that the money one would spend on a life insurance policy for their children could be better spent in setting up a college fund or some other kind of savings plan for them.
