Should You Buy Life Insurance For Children?

Is life insurance for children a good idea or a waste of money?

Ask that question at a dinner party and you’re bound to get some pretty intense responses.  That tends to happen when you talk about kids and death in the same sentence.  But let’s take a practical look at the pros and cons of life insurance for children and decide for ourselves whether or not it’s worth it.

Neal Frankle from Wealth Pilgrim argues that you should never purchase life insurance for your kids.  The purpose of any life insurance is to protect your family  by replacing income that you are no longer capable of producing it.  But children generally don’t support their family (ok, maybe if they have their own show on the Disney Channel) so there’s really no need to ever buy life insurance for children.

Over at Best Rates In, Miranda Marquit listed life insurance for children as one of the 5 most useless insurance policies.  She suggests you’d be better off putting the money aside in an IRA or 529 plan.

But that’s just one side of the story…

Melissa from Parenting Family Money points out that the insurance doesn’t necessarily have to replace your child’s income…it could cover funeral costs or replace income that you would lose if you were too incapacitated by grief to work.  She raises an interesting point that many people never consider.   Evan from My Journey to Millions offers a similar stance and he actually points out that he will purchase life insurance for his own child.

So as you can see there is too sides to every coin.  I never purchased life insurance for any of my children and I still don’t agree with those who do, but I do understand where they’re coming from.

Readers, what’s your opinion on life insurance for children?  Do you think it’s a wise investment or a waste of money?


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Mike is a freelance writer and blogger who specializes in finance and parenting topics. He is a dedicated husband and father of three who is obsessed with creating multiple streams of income and building wealth so he can achieve true financial freedom for his family. Like what you're reading? Subscribe to our free RSS feed and follow us on Twitter.

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  1. says

    To me it seems like a waste too, but I could see how it could give people peace of mind. When I have kids I’m pretty sure I wouldn’t get life insurance for them either. I have heard the prices can be extremely low though. So if you are the type that worries a lot about that kind of thing, maybe that small expense will be worth it.

  2. says

    When you purchase life insurance, some companies will give you a rider policy for your child at little to no cost. It’s not a huge amount of coverage, but enough to cover funeral costs, etc. It’s impossible to get a policy if/after your child is diagnosed with something, so I’d say for the minimal cost you might as well.

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