Following the tragic death of 22-month-old Cooper Harris, it might be time to highlight life insurance policies for children. Steve Weisbart, chief economist for the Insurance Information Institute, said that children make up less than one percent of the life insurance market. Etti Baranoff stated that one of the reasons is that insurance is meant to provide for the economic security of dependent individual. When a spouse in a marriage dies, the remaining spouse may lose more than half of their income, which makes the insurance necessary.
What is interesting about the Georgia man accused of leaving his son in a hot car to die is that Justin Ross Harris and wife, Leanna Harris, took out two insurance policies for their infant Cooper Harris. One of the policies was for $25,000, and the other policy for $2,000. The case drew attention to the policies parents sometimes purchase for their children.
Premiums vary based on the terms, and some insurance providers require documentation of how the individual died. The terms and conditions of a policy should be understood before a purchase.
Policies for adults can be purchased through an employer or bought individually. In general, the death benefits for children are lower. Steve Weisbart said a typical policy of $5,000 to $10,000 is common. It helps the parents pay for a funeral. Why do parents or grandparents buy policies for their children? Typically, it happens because there is the intention to let the child use the policy as a cash source later. Policies can become a saving device.
While life insurance for children is less common, some families legitimately use it for greater financial security. In the case of Justin Ross Harris, the insurance policies were only among the numerous details of evidence against him.