Life Insurance For Children-The Debate Continues.

We all want to protect our kids. If you are thinking about this as an option to help your children later in life, is it the best idea? It is true there are many ways to make your money grow for them to use for later on down the line. Should you take advantage of the extremely low premiums that you can get for someone so young, that will carry on or should you look into investing in an IRA for education or maybe a 529 plan. It is a lot to think about.

If you get a whole life policy on your child you will be able to take money out and use it for different reasons when they are older. Because the first withdrawals are from the premiums there is no tax taken out. If you have a 10,000 policy on a kid they can change that to a $280,000 policy as an adult and they don't need to go through any medical tests to do that. If you take out all that you have paid in premiums for college costs or getting them a car you can still get loans against the gains that are tax free.

Anyone with cancer or other serious issues in both sides of the family will have a bad time getting life insurance at all. If you have this history that you are passing on to your child you could be getting them the only life insurance that is possible, That is something to consider. They will always have it this way and if it never gets used then it is like money in the bank.

If your main goal is investing to get together money for the college education, there are some other ways to do that too. Some states have excellent prepaid college plans that will let you pay the rates that are current even though when they finally go it will probably be a lot more money. There are several different options for this sort of saving plan that can be looked into.

However you plan on helping your kid to face the future will be better than a piggy bank. The best idea is figuring out which plan to use. Whether you use an IRA or life insurance, or find something else you like better. There is a lot that you can do. You just have to make a good decision now to make everything work better later.