Consumer Reports is a venerated publication that provides a wealth of advice for people buying everything from cars to radon testing kits. A recent article, “Insurance policies you don’t need,” contains some interesting information (e.g., credit insurance, used to pay off a loan if a person should die or become disabled, is often much more expensive than term life for someone covered by disability at work). However, it also contains its fair share of generalities.
In particular, the article makes the blanket statement that “child life insurance is unnecessary.” The issue of life insurance policies for children is highly charged and emotional. There are passionate arguments on both sides.
The truth is, for many families, life insurance for children provides numerous benefits. Aside from providing for expenses in the event of the unimaginable, these policies build up cash value and serve as an easy vehicle for saving money for many families. Many policies also allow children to automatically qualify for additional insurance later in life, which can be a huge advantage.
In the end, the best resource for consumers considering any type of insurance policy is a good agent who can evaluate each family’s situation and explain the ins and outs of the products.
To locate a highly qualified agent in your area, visit the consumer section of the NAIFA website.