Have you considered buying life insurance for your baby? Today, companies offer life insurance policies for your children in order to provide a "financial head start." Why not when are rates inexpensive and above all guarantee your baby's future insurability. Life insurance companies encourage you to buy whole life insurance policies instead of term life insurance by highlighting the cash value which your child can take advantage of in the future. But would you and your child really benefit from a whole life policy?

Million American households have been lured into purchases such life insurance policies for children but we advise against it. You should weigh the worth of this risk before you buy life insurance for your child. Why do people need life insurance in the first place? The objective of a life insurance policy is to protect the income of the family's main wage earners so in case either of them pass away, their dependents will continue to live comfortably. A child does not have income thus there is little to protect.

Remember the reason for most insurance is to indemnify one of financial loss, although the lost of a child would be a terrible loss it would not be one that is financial. One of the biggest gifts a parent could give a child is to make sure that they are adequately insured. Term life insurance is very reasonable for young parents and it will give you the biggest amount of insurance for very small premiums. A child needs protection from your financial loss. Please give them the life insurance protection they need by insuring yourself not the child.