What is the best children’s life insurance policy?

What’s the best children’s life insurance policy? Typically, it’s no policy at all. Why? Because there are much better places to put money for emergencies than into a child’s life insurance policy. As a Columbia, MO financial planning firm, we routinely work with clients to help make these tough decisions easier and to plan for their current and future financial goals.

Part of a sound financial plan is being prepared for sudden emergencies that can occur when life takes a turn for the worse. I honestly can’t think of a worse turn than losing a child. Insurance companies try to pitch life insurance policies for just this scenario—often pulling at our heartstrings in order to do so. In reality, the advertising doesn’t hold up to sound financial planning.

As a pure investment vehicle, a life insurance policy on a child is certainly not a first choice.

As a life insurance policy providing benefits upon the death of a child, these policies are usually a bad decision based on mortality rates and the fact that the loss of a child does not impact the household earning potential.

Insurance companies also advocate that insuring your child early can mean they won’t be rejected for coverage as they grow up and potentially develop uninsurable health risks.

To see why this isn’t a good reason to buy a life insurance policy on a child, please check out my article on the Columbia Tribune’s website.

As a financial planner specializing in comprehensive financial planning, Tim enjoys helping clients in Columbia, MO with considering investment vehicles like life insurance and other financial tools.

If you would like to learn more about this and other personal financial planning topics serviced by Clarity Financial, please contact us at 573-447-7007. Clarity Financial, LLC is a fee-only financial advisory firm in Columbia, MO. Appointments are welcome and initial consultations are free. 

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This article is the property of Clarity Financial LLC.