Why Your Newborn Doesn’t Need Life Insurance
Some insurance companies advertise life insurance for babies by pointing out that the insurance premiums will be lower while the child is young and in good health. Others point out that life insurance could be used to pay for burial costs if the child passes away.
Don’t purchase life insurance for children. Life insurance is only necessary for people who have dependents. Just because an insurance product is inexpensive doesn’t mean it’s a good deal. If you want to invest money for your child’s future, invest in a mutual fund or tax advantaged college fund.