When is life insurance for children really necessary?

The main purpose of life insurance is to cover the expenses of the surviving family members upon the death of the primary income earner. Since children do not have any dependents and are rarely the primary (or even secondary) wage earner, logic would dictate that their risk is low and that life insurance is unnecessary.

That is not to say that purchasing life insurance for children is always a bad idea; what if, for example, your child is earning a significant amount of income for your family as a model or an actor? This might be a circumstance wherein life insurance for a child is warranted.

Some people consider a life insurance policy for children as a gift for that child as they grow older. This way, they have a life insurance policy in place that they can continue when they are adults, and may actually need it.

Perhaps the best service you can provide your children is to know the advantages and disadvantages of each insurance and saving option and teach your children to take a long-term perspective of their finances.