Ignorant Brit here. Am I being incredibly naive in thinking that just the act of buying life insurance for kids is dodgy? The only way I can imagine it not making me feel really uncomfortable is if it was part of a medical insurance package.
Anyone have any ideas on this? Am I the only one who feels uncomfortable with the possibility of anyone, let alone a kid being profitable in death?
My parents had life insurance on us. They said it was to cover the costs for a funeral.
shareroseme, same with me and my 6 siblings. It was for funeral cost if anything happened to one of us, which it did and my parents used the money for his funeral.
shareSame here. My mom had insurance policies on all of us to pay for funeral expenses, which she needed when our brother drowned at the age of seven. It was actually barely enough to cover his funeral & burial expenses.
shareYeah it's not uncommon, me and my siblings always had it growing up. Life insurance isn't supposed to be for profit, but to cover funereal costs which are pretty high. Granted people seem to get much more than what's needed but it's not supposed to be used to make someone rich.
"Who lives, who dies, who tells your story"
That seems fair enough. Life insurance in general seems morbid to me but that is probably because my family doesn't have money for stuff like that. Maybe it is different here in the UK also. Saying that, I do have one now for myself with work and with my pension saying that if anything happens to me my son would get any money.
I don't think anybody in my family has ever been in a position to save towards a pension or worked for a company that had life cover as part of employee perks. They have always been pretty much paycheck to paycheck.
Thanks for your replies people. :)
My parents had a reasonable policy on me from their work. It just covered my burial, not a cruise vacation. Too bad.
shareThere are inexpensive ways for parents to get life insurance for their kids. They can add a rider for their child to their own policy for a few dollars that would generate enough money for funeral expenses.
Some US insurance companies sell whole-life policies/investment plans that mature when the child is college age. The parents can take the cash value out to help pay for college, and the child (now an adult) can take over paying the premium on the insurance policy. The rates are really cheap when you buy the policy for an infant.