Posted on: 10-01-10 12:35:14
I have 14 year old son, am planning to get long term life insurance for him. Any insight or suggestions from experts?
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Why do you want life insurance for a 14 year old?
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Why not?
One should have life insurance anyways and I think it would be cheaper and easier to start early.
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Dont help others because others have helped you,,,,help others because its the right thing to do!!!
http://www.indopia.in/
Quote:Because life insurance re-imburses the beneficiary for the financial loss upon the death of the insured.
Originally posted by RESP
Why not?
What kind of financial loss would one face as a result of the demise of a 14 year old?
And who would be the beneficiary? The parents?
It should be the other way round - the parent(s) should have life insurance coverage with the kids as beneficiaries.
Quote:Not always. Only if there are financial obligations or dependents that need to be maintained.
One should have life insurance anyways
A single person with no dependents doesn't need life insurance.
Quote:Not necessarily.
and I think it would be cheaper and easier to start early.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Pratickm,
I agree in most of the cases a single person with no dependent might not require a Life insurance. However in case of our kids, we assume they will have some liability at some point of the life. They will get married and start their own family. At that time they would probably have to take life insurance. It will be expensive because of the age. Also god forbids, he may not be eligible due to health condition.
Think of this as a gift to your child when he grows up.
RESP,
If you can afford it, there is nothing wrong in taking LI for your kids. But keep in mind that there is no point in taking term insurance in this case. You may opt for 20 pay UL or WL. By the time you kid is 34, his life insurance is paid off for life.
Normally, you would be the owner of the policy and you can transfer the ownership to you kids when he can afford to pay the premiums. Or you can continue to pay the premiums.
Keep yourself as beneficiary (revocable). Beneficiary can always be changed to anyone financially dependent on you kid (say 15 years from now).
And yes It will be cheaper at this age.
Quote:
Originally posted by pratickm
Quote:Because life insurance re-imburses the beneficiary for the financial loss upon the death of the insured.
Originally posted by RESP
Why not?
What kind of financial loss would one face as a result of the demise of a 14 year old?
And who would be the beneficiary? The parents?
It should be the other way round - the parent(s) should have life insurance coverage with the kids as beneficiaries.
Well I think you assume a lot
I asked for a LONGTERM life insurance, as I want to contribute to his LI so he wont have to worry ( for getting the insurance) during his adulthood. We do have our own LI and of course our son is the beneficiary. I do know how insurance work. My question was what would the best option when it comes to getting life insurance (LONGTERM, not Term Insurance) for my son.
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Dont help others because others have helped you,,,,help others because its the right thing to do!!!
http://www.indopia.in/
Quote:
Originally posted by rsbagwell
RESP,
If you can afford it, there is nothing wrong in taking LI for your kids. But keep in mind that there is no point in taking term insurance in this case. You may opt for 20 pay UL or WL. By the time you kid is 34, his life insurance is paid off for life.
Normally, you would be the owner of the policy and you can transfer the ownership to you kids when he can afford to pay the premiums. Or you can continue to pay the premiums.
Keep yourself as beneficiary (revocable). Beneficiary can always be changed to anyone financially dependent on you kid (say 15 years from now).
And yes It will be cheaper at this age.
Thanks you so much for the response. Can you please tell me what is the difference between UL and WL?
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Dont help others because others have helped you,,,,help others because its the right thing to do!!!
http://www.indopia.in/
