Infant Life Insurance Texas TX
Reader’s Question:
An insurance company in Texas is offering me an infant life insurance policy. She’s saying that whole life term policy would be much better for my baby than the term life insurance policy. Is she right about this? What is the main factor for me to weigh my options well?
Maria
Dallas, TX
Absolutely not, Maria.
You see, most insurance companies in Texas will really attract you into buying a whole life insurance policy. In your case, since it is a baby life insurance policy, let me guess that the insurance agent is trying to lure you to purchase a whole life insurance policy for your baby instead of the straightforward term life policy by highlighting the cash value which your child can take advantage of in the future.
Though it is true that there is a “cash value” for a whole life insurance policy, you also have to consider future insurability of your infant. Try to look hard enough here. People within the age bracket of 20-30 will have no problem purchasing life insurance nowadays even with a medical condition, as most are insurable. Buying am infant life insurance policy will not get him/her anywhere. It is simply because the face value of juvenile policies remain low, maybe ranging from $5,000 to $10,000. An infant life insurance policy thus becomes a meaningless amount for future insurance.
Aside from that, Texas term life insurance policy will be good enough. Whole life insurance policies usually come with hidden fees and you will find out eventually that you are spending more than the benefits that you are getting.
In my own opinion though, you should first focus first on your own life insurance by making sure that you are not underinsured considering that you already have a baby (I’m assuming this is your first child). Your life’s insurance’s benefits might be enough to take care of your infant’s needs in the event of your premature death.