Short answer: No. The reality is that the overwhelming majority of children don’t need life insurance.
While the advertisements for insuring children may appeal to your emotions, the financial fact is that a loss of a child will will actually remove a major commitment. That may sound harsh, but life insurance is for helping with the financial repurcussions of a death, and it simply costs much less not having a child than having one.
Is children’s life insurance cheap? Sure, but that is because it is rare for children to die. The sales agent will give you a great pitch about how low the cost is, but if you figure the return on investing all those years of premiums into a Roth IRA, or 529 college account, you’ll see that it’s really not such a great deal at all. There are far better investment vehicles that will help you and your child.
The main reason for life insurance is to provide financial security to the family in the event that an income earner dies. So, unless your child is a child movie or rock star, there is probably no reason for you to buy children’s insurance.
On the other hand, far too many parents who are considering children’s insurance are underinsured themselves or simply aren’t insured at all. Your children are much more at risk of losing you, than you are of losing them.
Visit an online insurance website with a good needs calculator. After you figure out how much insurance you should have, use the quote engine to see just how affordable an adequate amount of insurance is.