Though determining when the purchase of a life insurance policy is appropriate is largely a personal decision, it can be difficult to determine when coverage is necessary - particularly in the case of children.
Some may believe life insurance is not necessary for young people, simply because they do not have any dependents to provide for should something happen to them. However, according to Tillonsberg News, there may be some advantages to purchasing life insurance for children.
A life insurance policy for a child represents a financial investment for their future, according to the source. Certain types of life insurance have investments in addition to simple death benefits. These types of policies could provide cash values for children as they grow older, which may be used for education or other important expenses.
Additionally, buying life insurance for children allows them to be approved while they are young and healthy. Should they develop serious illnesses later in life, they may be ineligible for life insurance or could be charged high premiums, the source says.
Though it is difficult to think about, outside of financial benefits for a child, life insurance could help cover the child's funeral expenses should a tragedy occur. The economic crisis has caused an increase in the number of unclaimed bodies due to an inability to afford burials, according to the Los Angeles Times.