Even considering the possibility that one of your children might die is enough to bring some to tears. It's not a pleasant thought, but for too many people, it's a sad reality. Complications from a birth defect, a car accident, SIDS, childhood cancer. They're unfortunate realities that far too many parents have to face.

Life insurance companies know this reality. To help parents, many companies offer life insurance policies for minors. They are often whole life policies that build up cash value which you can access in the future. You can pay for education or other costs with this money. There's no clear and dry answer about whether parents should buy life insurance for their children.

Here are the pros and cons for you to consider:

Pros

1. If your child develops a chronic disease, they may not be eligible for life insurance later. If they have insurance as a healthy child, they are now covered for the duration of the policy. They may be able to continue the coverage even after getting sick. This chance is slim, but possible.
2. In the unfortunate event that you need to make a claim on your policy, you will have money to pay the final expenses and medical bills. Funerals and hospital stays are expensive. Families with young kids don't usually have such a large sum of money sitting around. A life insurance policy will ease the burden of these hard times.
3. Some life insurance policies that have a cash value feature. You can borrow money from the policy when you need it. This may come in helpful when paying for tuition or after school activities.

Cons

1. You cannot calculate the emotional cost of losing a child. But the long-term financial loss to your family is negligible. Adults earn a salary but children rarely add to the family finances.
2. The price of life insurance for young children is relatively high compared to that of adults. If you want to buy it for the savings aspect, you might be better off putting money in an educational savings account.
3. Children born with birth defects or who develop serious conditions soon after birth may not be eligible. Even if you do decide you'll buy a policy, there's no guarantee that you can post-birth.

Now you know some of the reasons why you should or shouldn't buy life insurance for your child. Consider the health histories of your family members, and your financial situation. Then talk with a trusted financial advisor for further input if an answer isn't clear to you. For more information, contact one of our agents for assistance with your policy.