Do my children need life insurance?

Securing a life insurance policy for your children may seem like a morbid proposition, but in actuality it can be a rather smart investment. Of course no one wants to think about their children passing away, but on the rare occurrence that this does happen, you do not want to face financial ruin.

Funerals can be pricey; the average funeral cost in the U.S. can range between $5,000 and $8,000, depending on the services requested. A small term policy can cover your children for the time that they are under your care and can more than cover these costs. As long as you present an insurable interest to the insurance company, you will most likely be approved as a beneficiary. Parents definitely have an insurable interest in their children.

There is another situation in which you should have insurance for your children. With driving accidents being the number one killer of teenagers in the U.S., there is always a likelihood that a parent will be in the car as well. If you or your spouse passes away at the same times as a child, suddenly the earning power of the family has been cut in half in addition to the funeral expenses. If you are looking to pay for a surviving child’s college tuition, or countless other expenses, these will become much more difficult, or even impossible, without some sort of insurance policy in place.

Ultimately, you are the best judge of your own situation. If a child’s death would create detrimental costs, a life insurance policy is your best option to offset any expenses that would occur. Term life insurance is the cheapest way to do this. When your children are grown and moved out, they can then determine for themselves which policy best suits their needs. In the meantime, you and your family will be protected.

Matthew G Young – TermLifeInsurance.org Expert is a New York State licensed Life, Accident, and Health Insurance agent. He is also the author of The Complete Guide to Investing in Annuities: How to Earn High Rates of Return—Safely. Matthew currently resides in Western New York with his wife and family.