“I can’t imagine anyone taking insurance out on their children.”
I agree with you. The only life insurance on children I’ve ever heard about that doesn’t sound sinister — ghoulish, perhaps, but not sinister — would be a term life insurance policy, for, say, $5,000 or $10,000 to cover burial costs if the child dies. Someone told me that some poor and working class people used to buy them decades ago so they wouldn’t have to pass around a hat if, God forbid, one of their children died.
Yes. My siblings and I had one on us.
I took out whole life policies on my two boys (17 and 14) when they were born. When they turn 25 I will assign each of them their own policy. Each policy will be paid in full and ongoing premiums will be paid by earnings on the cash value.
If they boys maintain them until age 65 each one will have a cash value currently estimated to be in excess of $250,000. That’s a legacy I can appreciate leaving behind for them.