News from News & Observer:

Q. Lately we are constantly seeing commercials and receiving mailings from the same company. They are encouraging parents to buy life insurance for their young children. The ads are from a reputable company. As with all life insurance, the younger the child, the less it costs. We can buy a whole life policy with a $ 10,000 death benefit for only $ 5.83/month for our 6-month-old son. As long as we pay the premiums, the policy remains in place, and when our son reaches the age of 18, the death benefit doubles to $ 20,000. The premium is also guaranteed not to increase over his lifetime. This ensures that our child will always have life insurance regardless of any unforeseen future health issues and in the horrible event of premature death funeral expenses will be covered. The same company sells what they call investment-oriented whole life for adults. We have some inexpensive coverage through work but are considering buying policies on ourselves, too. It’s our understanding that these can build up cash value to help with future education and retirement needs. The……….. continues on News & Observer.

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