Oct
8
2007
Who Needs Life Insurance and Who Doesn’t?
Author: Valeria WeberFirst of all, let’s take it from the top: babies and children do not need life insurance. If you are a parent or a grandparent, you can best protect the new baby or the children in your life by taking out life insurance on yourself and listing the child as the beneficiary. Not by insuring them. Life insurance is not an investment vehicle. It will not help your child get into college.
The idea behind life insurance is that those who have dependents or people counting on them financially for the future will be provided for in the event that that person dies. The beneficiary can be an elderly family member who needs long-term care or a child who needs to go to college. More commonly, life insurance is taken out on both bread winners in a family so that in the event of sudden death, the parent left behind to shoulder the emotional burden won’t have to worry about where the mortgage payment is going to come from as well.
Older adults whose children are grown may not feel like they need life insurance, but that’s not necessarily so. Even if a large estate is left behind, it can be tied up for years in court dealing with taxes and other dispersal expenses. Life insurance payments can be made right away so that the family can cover death costs.
Single working adults without children may decide to take out a life insurance to help nieces and nephews through college or take care of their parents.
In a nutshell: Adults need life insurance. Children do not.
October 9th, 2007 at 1:02 am
Thank you for this pertinent information on who should and should not have insurance. I am asked quite often about whether or not children should be given a policy and am grateful that this informative blog puts the concise information out there for consumers. When an agent is selling a policy, uppermost should be that the client always understand what they\’re getting into.
Jerry
http://www.leads4insurance.com
October 12th, 2007 at 8:57 pm
Insurance should be used to displace a risk that is too great to assume individually. Thanks for this reminder that we sometimes need to step back look at out life insurance protection.
October 13th, 2007 at 11:43 am
Insurance should be used to displace a risk that is too great to assume individually. Thanks for this reminder that we sometimes need to step back look at out life insurance protection.