Do I need a life insurance policy for my child?

Answer:
Life insurance provides financial protection

and replaces lost income after a loved one dies. For example, if the breadwinner of the family dies, life insurance can provide funds to make sure the family can remain in their home, pay their bills, pay for childcare, and even continue saving for college.

When a child dies, most families won’t be devastated financially because the child isn’t generally an economic contributor to the family. From a financial standpoint, buying a large life insurance policy on a child isn’t usually required. You may want a small policy with enough death benefits to pay funeral expenses.

Exceptions to this include if your child does generate significant income such as if she is a television star or if you want to buy life insurance as an investment option with a cash value component for your child.

You may be able to add your children to your life insurance policy by purchasing a rider to cover the burial and funeral costs should one of your children die before they reach age 18.