Why would I ever buy my children an insurance policy? They have no dependents, no assets to protect, no charitable foundations to provide and obviously no spouse depending on their income. So, why would anyone consider young children when buying an insurance?
Death is the number one reason, period. God forbid the worst thing could happen, you're still faced with thousands of dollars in funeral expenses. Regardless of how morbid you may feel about taking out a policy on your child, the fact remains, unless you are able to write the check as easily as paying for gas at the pump, this is a big expense. Health remains the single largest reason people pay considerably more or declined all together for life policies. Sure, ten toes, ten fingers is great news the day they're born, but if additional health issues pop up later in life they may not qualify.
The good news, chances are they'll never pay less then now. If you're currently over 35 and have looked in to coverage for yourself I bet you wish you would have gotten that life policy a few years sooner. Setting your child up now when they're young and health may make a huge difference in being able to afford or even qualifying for a policy later in life. The beauty is you can be creative when coverage's. Add them to your policy or take out a separate cheap term online life insurance policy and most companies will allow you to convert to a permanent policy later. Setting up a policy now insures life insurance guaranteed in the future.
Some policies, such as Universal Life and Whole Life allow for accumulation of cash. Wow, so now you have two benefits in one; guaranteed coverage and the ability to save money for the future.
