Life Insurance for Kids, is it necessary?
I remember this conversation I had with a neighbor a few months ago. While waiting for a shuttle, she talked to me and asked where I live and if I have an insurance already. I think I look so approachable that people just talk to me even though I barely know them. I’m not in a good mood at that time, so I just answered with “yes! my husband and I have insurance already“. She told me that it’s a good thing we are both insured but she mentioned that I should get one for my son too. I told her, that my son has a mutual fund from Sunlife and I think he doesn’t need a life insurance yet.
I am a believer in getting a life insurance for your own peace of mind. I even recommend this to my friends, families and relatives. I am saddened when most of them reply with “it’s hard to include it in our monthly budget” or when they believe that SSS is enough.
But why do I think getting a life insurance for young kid/s is not necessary?
First, because I don’t like the thought that we the parents are our kids’ dependent. That we will get monetary amount if something bad happened to them. I think I am the one responsible for my son’s well being so I should take good care of him until he reaches the right age to get his own life protection.
Your child is a liability, not an asset, and we should only insure assets. An asset is any source of financial value for your family. I think, if your little one is a superstar like a little Justin Bieber or Ryan of Ryan’s World, the famous kid toy reviewer, then I think that’s okay to get them a life insurance or if you have an extra extra extra amount of money. But other than that, I think that they don’t need it.
Just make sure you are insured first before your child.
I read this article of Randell Tiongson and I totally agree on everything he mentioned – http://www.randelltiongson.com/dont-buy-life-insurance-for-kids/
According to Investopedia on why you should not get life insurance for children:
“Life insurance is designed to provide a safety net for your heirs/dependents. Because children don’t have heirs to worry about and, statistically speaking, most kids will grow up safe and healthy, most parents should not purchase life insurance for their kids…”
I think it is not necessary to get young kids a life insurance because I would rather invest my money in a trust fund/mutual fund that they can use in their future.
And yes, that’s what my son has, a mutual fund
But for practicality reason, I personally would rather invest my money in a medium that will beat inflation for it to increase and use when the right time comes.
Kendrick Chua, on the other hand, explained why you should consider getting one in his article here – https://www.rappler.com/business/personal-finance/53179-getting-life-insurance-for-kids
What do you think?
At the age of 21, dapat nagpaparty party pa ko. Haha. But since I already have 2kids grabe na curious na ako sobra how to be financially stable! How to have our own house, grabe. There’s more to life than just wasting your time and money on not so important thing pala, lalo na pag may pamilya ka na. Once my husband will move to other country to work their,since parehas kami di knowledgeable about this kind of stuff, ako na lang ang mag reresearch. But ang una kasi niyang plan is to have our own house,tapos ako naman gusto kong mag open ng bank account for my kids beneficial din po ba un? May narinig ako sa tita ko Mommy Levy about Funeral Insurance po ba yun. Ang dami palang insurance nakakalito pa rin. Hehe. #spreadtheLev
kung di mo naman gagamitin ang pera na isi save mo for the kids, put them on mutual fund na mag iearn ng at least 8% per year. Sa banko wala pang 1% per year ang interest nyan.
Wow thank you po sa tip Mommy Levy. Noted on this one.
Indeed
Teach our kids how to save and invest
Go for Mutual Funds #Diversify
Pay it forward
#NoToVul
#Ssbyf
#FinancialEducationistheKey
Hi Momshie Levy,
Agree po ako sa insurance, kaya kumuha na din kami ni hubby last July, at sunlife din po kami.. ipon pa
more, makakahintay naman po ang mga wants.. 🤗 Thanks po for sharing!
Correct!!! Dapat lang naman na meron din insurance para sa mga bata!! #spreadtheLEV
I really want something like this for my kids, but hindi tlaga pasok sa budget. More on education kc na pupunta ang pera. But I would love to get them an insurance that would benefit them in the future. I’ve heard of Sunlife financial sana you could tackle more on this.
#sharetheLev
Will search re mutual funds for kids. Im saving something for them sa bank. Kaya lang super liit ng interest hehe. #Spreadthelev
Parang mas ok yung something they can use rather than a life insurance. Agree with the mutual fund.
#sharethelev
as parents, educational plan ang ibigay sa kanila or health insurance
at dependents din kase sila ng mga benefits natin mga parents
then when they grow and earn money from their hardwork
sila na dapat ang kukuha ng life insurance para sa kanila.
*just my personal insights…no to bash pls….
#LevLevLev
My husbandry works in the insurance agency, and he says that, yes, options like mutual funds are better for children, or products like Grad Maker. 😀
never heard of Grad Maker, ano yun?
I agree dun sa sinabi mong “I am the one responsible for my son’s well being so I should take good care of him until he reaches the right age to get his own life protection.”
Hindi ko din gets tong insurance at never pa ako naka encounter ng insurance advisor. Nagka-idea ako konti sa post na ito at sisimulan ko ng mag-research para may background about this matter.
#LevLevLev
I also don’t see the point of getting life insurance for kids. I would rather invest the money on something that will help with their education or their other needs in the future.
Sadly, I am not a believer of insurance policies. Pero I save up fpr my kids and invest money for them.
Not so familiar wd insurance thing but ive been convinced by a colleague to get one for us parents. I am somehow moved na , well we never know what will happen but at least kampante tayu na may maiwan for them. We are discussing this kasi true naman we have to spare from our monthly budget. Pero valid and ang point on getting an insurance ng parents kaysa insurance ng kids at wala pa nmn magmana sa kanila. Thanks for sharing bout this Ms Levy #LevLevLev
Will think about this mommy 🙂 I also have a mutual fund for my little kulit kasi I can use for his college funds.
Gusto ko tong sinabi mo mare, “Your child is a liability, not an asset, and we should only insure assets”. Insure mo na si Ren, since Youtuber na sya hehe
hahaha oo kapag 6 digits na kita nya char
Levy! Sis. Honestly, hanggang ngayon naguguluhan pa din ako sa mga insurance insurance na yan. We have several policies from different ins companies naku, pero, datapwat, hindi ko pa din talaga maintindihan… hahaha! On a serious note, na curious ako dito sa topic mo. Ang dami ko tuloy babasahin. Hehehe. 🙂
hahaha your financial advisor should explain it to you, wag titigil hanggat di mo naiintindihan. Maging makulit ka, ganun ako e hahahha
Very well said
#NoToVul
#LevLevLev
Yes to VUL for parents, not for kids lang para sa’kin
Yes mommy Levy,sa amin din ikinuha ko ng VUL(Pru-life UK) ang husband ko.So far,sya plng may insurance kasi super tight din tlga ng budget.Pero may savings din dalawa naming kids,yun nga lng maliit lang talaga ang kita pag sa bank nakalagay.
Depends on how the policy works, I think there’s an advantage and dis. Younger children would have lower premiums than those who are older. I agree with the mutual fund. It’s more attainable and advantageous from what I learned about it.
Tama ka dyan momc. 🙂