What is the Purpose of Life Insurance Policies for Children?

Question by Yup*: What is the Purpose of Life Insurance Policies for Children?
I thought life insurance policies were for the remaining family members after a person’s death. For instance, the main worker in the family should get a life insurance policy to ensure their spouse and children have enough money if somethign were to happen.

Now since children do not contribuite to a household income. Why would there be life insurance? Besides the funeral costs, their death would not impact a family financially, would it? I just saw a commercial for one, and it got me wondering. I am only 16, so no rude comments if I have the point of life insurance all wrong here.

Best answer:

Answer by BagsofSand
You are on point. I just heard Dave Ramsey – financial talk show host – mention this very thing. He just said only get enough to pay for funeral expenses as they can be expensive.

Know better? Leave your own answer in the comments!

1814 Roxbury Road in 1918
life insurance
Image by UA Archives | Upper Arlington History
Mr. John G. McIntyre and his wife, Helen (Runyan) McIntyre, were from Columbus and Morrow, Ohio, respectively, and resided at 1814 Roxbury Road with their daughter Mary Jane. Mr. McIntyre received his higher education at Holy Cross School. He was employed by Gem Coal and Supply Co. and was active in the organization and development of the Columbus Automobile Club. In his spare time, he enjoyed horseback riding. McIntyre operated a pony farm near Delaware, Ohio where he raised ponies for use in the mines. He also enjoyed automobile races that were occasionally held at the Columbus Driving Park.

The McIntyre home was purchased by the Percy M. Minshall family. Mr. Minshall was born in London, Ohio in 1880 and received his high school education in Philadelphia, Pennsylvania. He and his wife, Lillian (Thompson) Minshall, had two children, Marion and Virginia. Mr. Minshall was employed as a cashier in the Columbus office of the Bankers’ Life Insurance Company of America for many years. He was also a member of the Shriners’ fraternity. In his spare time, Mr. Minshall enjoyed outdoor life, and he often traveled north to Canada to hunt and fish.

This image available online at the UA Archives >>

Read the related "Norwester" magazine article at the UA Archives >>

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Identifier: hinw09p012i02
Date (yyyy-mm-dd): c. 1918-07
Original Dimensions: 12.7 cm x 7.7 cm
Format: Black and White Halftone Photograph
Source: Norwester, July 1918, page 12
Original Publisher: Upper Arlington Community (Ohio)
Location/s: Upper Arlington (USA, Ohio, Franklin County)
Repository: Upper Arlington Historical Society
Digital Publisher: UA ArchivesUpper Arlington Public Library

Credit: UA Archives – Upper Arlington Public Library (Repository: UA Historical Society)

5 comments to What is the Purpose of Life Insurance Policies for Children?

  • psycmikev

    No, your correct. The only real reason is so that is there is a death, the policy, normally $ 5000.00 will cover the related funeral expenses. Sometimes, the children will continue to carry the insurance, but normally it ends at 18 or 21.

  • Sarah

    Actually, there is another reason besides funeral expenses…if you develop a health condition at a later age and have had a policy since you were a kid you don’t have to worry about finding someone who will insure you when you are older.

  • MW&M (Miss *Delaney* 3 y/o Diva)

    When a family doesn’t have money to pay for service at a funeral home, i.e. preparing the body, plot for a burial, urn for a cremation, funeral service, taxes, etc. then YES it helps.

    Also if the child died in an accident or was medically treated, life insurance can go to help pay off any medical debt, esp if the parents had no medical insurance, or had a crappy medical insurance like an HMO.

    I know it’s “morbid” to think of taking a policy out on your own kids, but things happen. My cousin’s little girl passed away from Leukemia 4 years ago. she was a single mother working a part-time job and going to school full-time after her husband abandoned her & her daughter. if she hadn’t had life insurance on her daughter she wouldn’t have been able to take care of the funeral arrangements or medical bills.

  • Ashley ♥Aislings Mum♥ {09.25.08}

    My 9 month old daughter has life insurance. I don’t remember how much her policy is right now though, I’d have to track down the contract.
    I got it in case something were to unfortunately happen to her so we could cover funeral costs. It felt really morbid getting her life insurance, I’ve had her insured since she was 2 months old.
    I got her a 20 year policy so when she turns 20, she can decide if she wants to stick with the company I chose or if she wants a different company or even a different policy with the same company.

    So basically, life insurance on a child is to ensure that the family will have the money for a funeral and burial and everything if something were to happen.

  • harley_cowgirl_20

    Well like if the kid had cancer for like 5 years and then finally died, it could pay the doctor bills off and the funeral cost. Those things aren’t cheap.

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