Stick to buying term life insurance instead of juvenile life insurance, Jessica Silver-Greenberg says on SmartMoney's website. She said that while juvenile life insurance, wherein a child dies is not as useful as other ways the same money can be invested.
Silver-Greenberg said the chances of a child dying are one in 3,000, so it may not be very useful to buy this kind of insurance. Instead of getting this type of life insurance plan, policyholders should increase their own coverage or invest in the child's college savings, she said, adding that buying term life insurance is another good way to go for the unsure investor.
"This type of life insurance which provides a death benefit for a specific period, such as 10 to 20 years, with premiums generally set at a flat rate is the best bet for most people," according to Silver-Greenberg, adding that permanent life insurance is not as good in comparison, as it combines a death benefit with a savings account and carries steep commissions.
Bankrate.com said term life insurance is often considered the least expensive, complicated and highest recommended, as it covers a policyholder over a specific period of time. If the policyholder survives past that period, they will receive a lump-sum of money back, making it easier to save for retirement as well.