Whenever
someone mentions, or even wonders aloud if they should take out insurance for
their children, a hot debate kicks off. Every single time!
This is probably one topic of personal
finance/insurance that doesn’t seem to have unanimity on either side. Adam Ginsberg, the online
entrepreneurship and wealth-building coach, too studied the various
arguments and has decided to put forth his views on the subject.
First
and foremost, taking out insurance for children is a sensitive topic for
parents as each parent thinks differently about the welfare of their children.
Hence, the decision to buy or not to buy life insurance for children should be
left entirely to the parents. But here are a few arguments, both for and
against, that Adam Ginsberg believes should be shared with parents so as to
help them take an informed, albeit an emotional decision.
The
one argument that leans heavily in favor of buying insurance for children is to
allow them to enjoy insurance coverage later in their lives in case they end
with a chronic illness or a disability which renders them uninsurable. If this
is the argument that you as a parent are going to consider then Adam Ginsberg suggests buying awhole life insurance policy, which will keep your child insured for his
or her entire life, and also give them some returns in terms of the cash value
of the policy. If that is the way you are going to go as a parent, then experts
advise buying a renewable term plan for a high value makes more sense, and that
too which has the option of converting into a whole life policy later.
On
the other hand, the pundits believe
that that purpose of
insurance is to cover the loss of wage or income in the event of the
insured person’s demise, and since children are not earning any livelihood, it
is pointless to take out insurance policies for them. Instead, investing in a
good 529 plan or IRA make better sense in the case of children. Click here to read more
about what various experts think about this never ending argument.
To
know more about Adam Ginsberg’s views on
personal finance and about his
eBay tools and software, go here.
