Q: I have heard that it is not necessary to carry life insurance on my children. Do you agree with this?
A: There is a fair amount of debate on this topic. A well-known personality that offers financial advice doesn't think that it is necessary. The thought is that since children don't work, there is no income to be replaced.
I'm not so sure this is the right way to think about it. If something were to happen to your child, it would probably be a traumatic event in your life. Whether you lost your child to an illness or an accident, I doubt you would be in a place to return to work immediately. Aside from paying for the funeral, and perhaps some medical bills, you might want to take some time off of work to grieve. That is why I think you should insure your children. If you lose a child, you will need time to heal and recover. Money won't bring your child back, but it will help ease the financial aspect of things.
Here is another reason to consider life insurance for your child. If you purchase a policy for them when they are young and healthy, many carriers allow the child to retain the policy once they are older. If your child happens to be diagnosed with diabetes, or become seriously ill with something like cancer, it will be difficult -- if not impossible -- for your child to obtain life insurance in the future. You are helping them to protect their future as well.
