Should You Get Life Insurance for Kids?

No one likes to think about life insurance for their kids, but it's not a bad idea.

Most are torn when considering life insurance for their kids. It's simply unthinkable that something grave could happen to a child.

J.J. Montanaro, a CERTIFIED FINANCIAL PLANNER™ practitioner with USAA, says there are some good financial reasons to push past the discomfort and consider a child life insurance policy.

Life insurance for adults typically pays final expenses and replaces income for survivors. Most understand the protection from staggering funeral costs, but kids aren't wage earners, so the value of income replacement doesn't seem relevant. However, for a parent who loses a child, going back to work right away may prove too hard. Child life insurance policies can provide parents the power of choice -- the ability to take extended leave from a job for more time to heal.

Some parents buy life insurance for their young child to provide an affordable, lifelong, financial advantage. No one can predict illness or accidental injuries, but a parent can lock in a very good rate while a child is young and healthy. This potentially gives that child lifelong, affordable coverage, even if their health changes.

Ask your life insurance provider about the types of child policies offered: term, permanent, or a child rider. Then compare premiums with several reputable providers.