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limomof2
LIF Adolescent
Member since 1/13 845 total posts
Name:
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Life insurance for kids
I don't understand it. Someone said it's like a savings plan and they plan to take loans against it for college. Anyone know anything about this?
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Posted 2/7/17 4:35 PM  |
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lululu
LIF Adult
Member since 7/05 9511 total posts
Name:
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Re: Life insurance for kids
I never understood either but I think they are usually whole life policies that are small savings accounts. Or I guess large depending on how much you contribute.
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| Posted 2/7/17 5:29 PM |
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PitterPatter11
Baby Boy is Here!
Member since 5/11 7632 total posts
Name:
Momma <3
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Life insurance for kids
My DH and I looked into it. You're better off investing the money elsewhere.
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| Posted 2/7/17 5:31 PM |
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WannaBeAMom11
LIF Adult
Member since 1/11 7391 total posts
Name:
Name
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Life insurance for kids
It's like the gerber plan policies. They are a waste of money. High premiums for low benefits. Better to add your child to your existing term life policy and invest the money you were planning on sinking into premiums. I think they are scams because if you are uneducated they look good but you are really wasting money.
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| Posted 2/7/17 5:53 PM |
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BargainMama
LIF Adult
Member since 5/09 15660 total posts
Name:
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Life insurance for kids
My grandma had one of these policies on myself, and my two kids. She bought into their scam. I say scam because I think it's a rip off. She transferred the policies to me because she is getting up there in age. I ultimately let them cancel since I just don't see the value
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| Posted 2/7/17 7:31 PM |
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FranM
And so it goes....
Member since 9/05 2217 total posts
Name:
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Re: Life insurance for kids
The policy's you can borrow against or make deposits to are a form of whole or universal life. If you are considering this type of plan take a look at the cash benefit vs investing an equal amount in a 529.
A small term life policy (10k)for a child should be very inexpensive especially if added to a parents policy, less than $1.00 per month.
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| Posted 2/9/17 4:26 PM |
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ChristinaM128
LIF Adult
Member since 8/12 4043 total posts
Name:
Christina
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Re: Life insurance for kids
We have whole life insurance policies for our girls.
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| Posted 2/10/17 7:59 AM |
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StarsStripes
LIF Adult
Member since 12/12 1192 total posts
Name:
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Life insurance for kids
We have a 2 whole life policies
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| Posted 2/10/17 8:09 AM |
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limomof2
LIF Adolescent
Member since 1/13 845 total posts
Name:
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Re: Life insurance for kids
Posted by ChristinaM128
We have whole life insurance policies for our girls.
What are the benefits of having one?
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| Posted 2/10/17 8:47 AM |
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limomof2
LIF Adolescent
Member since 1/13 845 total posts
Name:
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Re: Life insurance for kids
Posted by FranM
The policy's you can borrow against or make deposits to are a form of whole or universal life. If you are considering this type of plan take a look at the cash benefit vs investing an equal amount in a 529.
A small term life policy (10k)for a child should be very inexpensive especially if added to a parents policy, less than $1.00 per month.
That's just it, we have 529s. My friend that has the ins on her kids says they are junk (529), what she has is better bc it can be borrowed against and savings. She's a know it all that is never wrong so that's why I asked on here for real opinions.
Message edited 2/10/2017 8:50:43 AM.
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| Posted 2/10/17 8:50 AM |
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lightblue
LIF Adult
Member since 1/17 2249 total posts
Name:
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Re: Life insurance for kids
Apparently my mother had a policy for my siblings and I that she paid a premium for every year and decided now just to cash it out (and we are in our 30's), and gave us each a check... it wasn't really much compared to what she probably paid each year for the premium. I would think it's not worth it.
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| Posted 2/10/17 10:45 AM |
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nycgirl
Angels!
Member since 3/09 7721 total posts
Name:
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Re: Life insurance for kids
I think there are different products out there.
We have life insurance for adults, but it is different than what you would get from work: you put cash into it upfront and then pay premiums. It is more of a savings to cover estate tax and has a benefit of being there just in case one of us dies.
I don't see the benefit of starting one for the kids.
We do have 529. It's an easy way of having money for protected use in the market for the kids (or their kids).
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| Posted 2/10/17 11:07 AM |
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