What are the pros and cons of buying life insurance for your children?

Some benefits of buying life insurance for your children include tax-deferred growth, the opportunity to invest in your child’s future and guaranteed lifetime coverage as long as you continue to pay monthly premiums. However, there are a few drawbacks to consider, including low overall coverage amounts, the prospect of a lifetime commitment and the availability of better investment options.

Can you buy life insurance for a newborn baby?

You can buy life insurance for a baby as soon as they’re born. In some cases, purchasing a life insurance policy for a newborn might make sense, but better alternatives may be available if you want to set your baby up for financial success.

Should You Buy Life Insurance for Your Children?

Q: Should you buy life insurance for your children?

It depends. Purchasing a life insurance policy for your child can help to provide a financial cushion to process your loss if your child passes away. It can also be used as a savings and investment vehicle and help lock in a modest amount of insurance coverage for your child for life. That said, better investment alternatives are typically available, so it’s smart to consider all your options before purchasing a policy.

About Margaret Wack

Margaret Wack is a freelance writer who covers insurance, saving, investing, banking, and more. Margaret earned a bachelor's degree in classics, comparative literature, and poetry from Smith College and a master's degree from St. John's College.

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Buying Life Insurance for Your Children: Pros, Cons & Alternatives

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