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karacg
Babygirl is 4!
Member since 5/05 17076 total posts
Name:
Kara®
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Re: Baby life insurance
We have policies for us (DH and myself). For DD I prefer to invest the $$ into other types of plans that will be better investments in the long run.
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Posted 4/3/08 10:21 PM  |
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smdl
I love Gary too..on a plate!
Member since 5/06 32461 total posts
Name:
me
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Re: Baby life insurance
Posted by DancinBarefoot
I recently (in the last two weeks) read something about money wasting and life insurance for infants was in the top 10. I'll try to find it.
yes, read it too.
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| Posted 4/3/08 10:34 PM |
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ArmyOfBabies
Growing older but not up
Member since 7/07 4427 total posts
Name:
Jeri
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Re: Baby life insurance
Posted by smdl
Posted by DancinBarefoot
I recently (in the last two weeks) read something about money wasting and life insurance for infants was in the top 10. I'll try to find it.
yes, read it too.
Can someone post a link to that article, I'd like to see it. I think that a whole life policy that builds cash for college or when they want to buy a home some day is important.
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| Posted 4/3/08 10:41 PM |
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itkocak
Member since 7/07 7639 total posts
Name:
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Re: Baby life insurance
Message edited 11/17/2011 8:45:48 PM.
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| Posted 4/3/08 10:54 PM |
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smdl
I love Gary too..on a plate!
Member since 5/06 32461 total posts
Name:
me
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Re: Baby life insurance
Posted by imthekevinofcindyandkevin
Posted by ArmyOfBabies
Posted by smdl
Posted by DancinBarefoot
I recently (in the last two weeks) read something about money wasting and life insurance for infants was in the top 10. I'll try to find it.
yes, read it too.
Can someone post a link to that article, I'd like to see it. I think that a whole life policy that builds cash for college or when they want to buy a home some day is important.
Don't know if this is the article in question but...
I think that was the one.
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| Posted 4/3/08 10:57 PM |
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ArmyOfBabies
Growing older but not up
Member since 7/07 4427 total posts
Name:
Jeri
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Re: Baby life insurance
Posted by smdl
Posted by imthekevinofcindyandkevin
Posted by ArmyOfBabies
Posted by smdl
Posted by DancinBarefoot
I recently (in the last two weeks) read something about money wasting and life insurance for infants was in the top 10. I'll try to find it.
yes, read it too.
Can someone post a link to that article, I'd like to see it. I think that a whole life policy that builds cash for college or when they want to buy a home some day is important.
Don't know if this is the article in question but...
I think that was the one.
I asked my husband about this article, he's an agent for New York Life. If it wasn't a good idea we wouldn't have gotten a policy for DD.
You have to read the fine print in whatever whole life policy you purchase for an infant/small child. You can buy a whole life policy that builds a cash value that does not have a limit (like they mention the Gerber plan has in the article). Also the author is assuming that the child will purchase life insurance when they are in their 20's or 30's when they are still relatively healthy. Most people put it off. What if they put it off until they're in their 50's or 60's? Even if they do buy it young but have juvenile diebetes they will be paying a ridiculous amount of money for insurance.
I tried to look up the author's credentials. I can't find an article about his/her (ambiguous name) background. But I did see quite a few articles they wrote that have nothing to do with insurance, which leads me to believe that this person thinks they are a 'jack of all trades, master of none'.
If you notice all the people who responded to the article don't agree with the author anyway.
JMO
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| Posted 4/3/08 11:31 PM |
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smdl
I love Gary too..on a plate!
Member since 5/06 32461 total posts
Name:
me
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Re: Baby life insurance
Posted by ArmyOfBabies
Posted by smdl
Posted by imthekevinofcindyandkevin
Posted by ArmyOfBabies
Posted by smdl
Posted by DancinBarefoot
I recently (in the last two weeks) read something about money wasting and life insurance for infants was in the top 10. I'll try to find it.
yes, read it too.
Can someone post a link to that article, I'd like to see it. I think that a whole life policy that builds cash for college or when they want to buy a home some day is important.
Don't know if this is the article in question but...
I think that was the one.
I asked my husband about this article, he's an agent for New York Life. If it wasn't a good idea we wouldn't have gotten a policy for DD.
You have to read the fine print in whatever whole life policy you purchase for an infant/small child. You can buy a whole life policy that builds a cash value that does not have a limit (like they mention the Gerber plan has in the article). Also the author is assuming that the child will purchase life insurance when they are in their 20's or 30's when they are still relatively healthy. Most people put it off. What if they put it off until they're in their 50's or 60's? Even if they do buy it young but have juvenile diebetes they will be paying a ridiculous amount of money for insurance.
I tried to look up the author's credentials. I can't find an article about his/her (ambiguous name) background. But I did see quite a few articles they wrote that have nothing to do with insurance, which leads me to believe that this person thinks they are a 'jack of all trades, master of none'.
If you notice all the people who responded to the article don't agree with the author anyway.
JMO
I am personally not a fan of whole life insurance. I had one myself at some time in my life (NY life as a matter of fact... but no offense to your DH) and most of my contributions were eating up by fees.
For the amount of $$ to cover for the "morbid" thought of a child passing, I found that is more advantageous for "us" to invest the money and not lock money into a plan we may never use.
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| Posted 4/3/08 11:39 PM |
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ArmyOfBabies
Growing older but not up
Member since 7/07 4427 total posts
Name:
Jeri
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Re: Baby life insurance
I was looking to see if there were any other articles about life insurance for babies and I found this "article" It sounds almost exactly like the article from smart money. The difference is that this is an insurance quote company who are not authorized to sell whole life, only term life. It makes me wonder if some authors are writing articles about it after being 'romanced' by other companies who are not authorized to sell whole life.
My main point is... let me beat a dead horse, lol... If you're interested in getting a whole life policy for an infant/small child you need to read all the fine print. Research it. Research different companies, make sure you have all the details in writing and choose a policy that can grow with your child. Don't buy the first one that shows up in your mailbox, even if it is a very recognizable name in the world of babies.
It's not for everyone. We also have a 529 set up for DD. I'm just trying to cover all our bases and give her the best head start we can before she flies the nest.
Link
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| Posted 4/4/08 12:02 AM |
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Mommy2Boys
My Boys!!!!
Member since 6/06 14437 total posts
Name:
C
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Re: Baby life insurance
My parents took out a huge insurance policy on me when I was younger ...the premium was so low than and stayed basically the same 27 yrs. later. I am grateful my parents took this out for me b/c god forbid something happens to me, the money would go to DH and DC. The premium rates on my policy is very inexpensive compared to what it would be if I took out a new policy today.
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| Posted 4/4/08 7:57 AM |
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Sassyz75
Turning a new page
Member since 5/05 9731 total posts
Name:
Dina
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Re: Baby life insurance
Posted by karacg
We have policies for us (DH and myself). For DD I prefer to invest the $$ into other types of plans that will be better investments in the long run.
I agree- we have the same....
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| Posted 4/4/08 8:22 AM |
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Diana1215
Living on a prayer!!!
Member since 10/05 29450 total posts
Name:
Diana
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Re: Baby life insurance
We have policies for us. God forbid anything ever happened and we needed money - we could borrow money from my family in a heartbeat if we needed to.
I understand everyone's thinking on getting it - and they should if they feel it's right for their family - I can't bring myself to do it.
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| Posted 4/4/08 8:30 AM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: Baby life insurance
Posted by ArmyOfBabies
Posted by smdl
Posted by DancinBarefoot
I recently (in the last two weeks) read something about money wasting and life insurance for infants was in the top 10. I'll try to find it.
yes, read it too.
Can someone post a link to that article, I'd like to see it. I think that a whole life policy that builds cash for college or when they want to buy a home some day is important.
The problem or issue with using a permanent insurance policy for the reasons above is that the return doesn't outpace inflation and the investment return tends to be poor. If you want to save money towards long term goals like college, first home, marriage that have a time frame of 10+ years, an insurance product is not an appropriate investment vehicle. Over the past 50 years, the stock market has continued to average an annual return of about 11% - this includes up and down markets. Inflation has averaged 3-4% and a guaranteed cash value found in whole life policies only gaurantee about 3%. which wouldn't outpace inflation.
I am posting this for everyone. Each person needs to do their own thing.
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| Posted 4/4/08 8:45 AM |
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Lillykat
going along for the ride...
Member since 5/05 16253 total posts
Name:
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Re: Baby life insurance
Posted by ABCiverson
Posted by Lillykat
Posted by shellybean
am i the only one that wouldnt do this..i feel strange about it...i cant even get one for my hubby...i know it doesnt make sencse but it just freaks me out!!
Nope we didn't do this either - I don't think it is worth it - but we do have an life insurance policy on DH - just not planning on getting one for DD - honestly I never met anyone who had one until I came on here.
I NEVER thought my child would die so young. We would still be paying off funeral debt (3 years after his death) if we didn't have it. You wouldn't believe how much things cost when burying someone even a little child. I was shocked at how much a plastic type casket was Its a horrible thing to have think about but I am glad that in the moment I didn't have to worry about how we were going to pay for it. Also I was able to get my son a big beautiful headstone. If we didn't have the insurance he would only have a tiny little grave marker with just his name on it
OMG I am so sorry for you loss - I can't even imagine how hard that must have been for you and your family
I understand why people get the policy - but I think for our family we prefer to invest the money and save money and if something were to happen I would rather use that money.
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| Posted 4/4/08 10:00 AM |
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nylisa
My Children
Member since 5/05 7905 total posts
Name:
MaMa
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Re: Baby life insurance
Posted by dediko
we have gerber life insurence for our DD.
Us too plus I took out a policy through my job.
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| Posted 4/4/08 10:05 AM |
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pinkandblue
Our family is complete, maybe
Member since 9/05 32436 total posts
Name:
Stephanie
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Re: Baby life insurance
Posted by ddunne2
Posted by shellybean
am i the only one that wouldnt do this..i feel strange about it...i cant even get one for my hubby...i know it doesnt make sencse but it just freaks me out!!
I hope you will think about it and soon change your mind...especially about a policy for your DH. Its a hard thing to talk about, but worse would be for a tragedy to happen and you would be in a horrible situation and your life would be full of financial worries. Its hard to sit down and think through how long you want to support your familiy with a life insurance policy if god forbid something happened. But its so so necessary. We even went as far as guessing a college for our kids so we could ballpark tuitiion and know that their education would be paid for if both DH and I passed.
I agree and honestly, I think it is IMPERATIVE to have poiliies for yourself and your DH...
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| Posted 4/4/08 10:06 AM |
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2girlsforme
LIF Adult
Member since 8/06 3071 total posts
Name:
XXXXXXXXX
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Re: Baby life insurance
Posted by shamrock124
Posted by ArmyOfBabies
Posted by smdl
Posted by DancinBarefoot
I recently (in the last two weeks) read something about money wasting and life insurance for infants was in the top 10. I'll try to find it.
yes, read it too.
Can someone post a link to that article, I'd like to see it. I think that a whole life policy that builds cash for college or when they want to buy a home some day is important.
The problem or issue with using a permanent insurance policy for the reasons above is that the return doesn't outpace inflation and the investment return tends to be poor. If you want to save money towards long term goals like college, first home, marriage that have a time frame of 10+ years, an insurance product is not an appropriate investment vehicle. Over the past 50 years, the stock market has continued to average an annual return of about 11% - this includes up and down markets. Inflation has averaged 3-4% and a guaranteed cash value found in whole life policies only gaurantee about 3%. which wouldn't outpace inflation.
I am posting this for everyone. Each person needs to do their own thing.
\
ITA!!! and I use to hold a life insurance license. We invest monthly for our kids and if G*d forbid anything happened to them, I do not need to replace their income. In terms of funeral expenses, we have adequate funds to cover that as well. I am not a fan of whole life in general, I beleive that insurance is to cover a risk and I want to do that the cheapest way possible. That said, we are regular, investors who cover all the bases.
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| Posted 4/4/08 11:49 AM |
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