Whenever someone mentions, or even wonders aloud if they should take out insurance for their children, a hot debate kicks off. Every single time!

 This is probably one topic of personal finance/insurance that doesn’t seem to have unanimity on either side. Adam Ginsberg, the online entrepreneurship and wealth-building coach, too studied the various arguments and has decided to put forth his views on the subject.

First and foremost, taking out insurance for children is a sensitive topic for parents as each parent thinks differently about the welfare of their children. Hence, the decision to buy or not to buy life insurance for children should be left entirely to the parents. But here are a few arguments, both for and against, that Adam Ginsberg believes should be shared with parents so as to help them take an informed, albeit an emotional decision.  

The one argument that leans heavily in favor of buying insurance for children is to allow them to enjoy insurance coverage later in their lives in case they end with a chronic illness or a disability which renders them uninsurable. If this is the argument that you as a parent are going to consider then Adam Ginsberg suggests buying a whole life insurance policy, which will keep your child insured for his or her entire life, and also give them some returns in terms of the cash value of the policy. If that is the way you are going to go as a parent, then experts advise buying a renewable term plan for a high value makes more sense, and that too which has the option of converting into a whole life policy later.

On the other hand, the pundits believe that that purpose of insurance is to cover the loss of wage or income in the event of the insured person’s demise, and since children are not earning any livelihood, it is pointless to take out insurance policies for them. Instead, investing in a good 529 plan or IRA make better sense in the case of children. Click here to read more about what various experts think about this never ending argument.

To know more about Adam Ginsberg’s views on personal finance and about his eBay tools and software, go here.

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