Should We Get Life Insurance for Our Baby? 

I got a life insurance policy from my parents when I was a kid. Now, I have learned that I have a genetic condition that means I can't qualify without a lot of payments. I'm happy they did that.

I love it when Dave shuts the caller by pressing the button 🤣🤣🤣

We all want the best for our kids, there’s definitely no dumb questions trying to prepare for our kids futures 😁

I lost a baby, as a single mom I didn’t have the money, it cost 6k+ for a child’s funeral ten years ago, not including her headstone. A child’s life insurance policy is smart to have until you have enough savings built up. Tomorrow isn’t promised for anyone.

I remember cashing out my bonds the summer before I went to college, I was so grateful to have them I got one from each of my grandparents each birthday.

My mom got life insurance on me and my sister when we were born. 10k, just enough to bury us if lord fodbid something happened. My mom had had a few miscarriages though so she had experienced loss, and was aware of what could happen. She also was poor, my dad was an alcoholic and didnt work. Without insurance she wouldn't be able to have a funeral. So we were raised aware that there was life insurance, and when myself and my sister had kids, we got life insurance on them. My nephew has 10k. My son has 10k. My mom still has 10k on my sister, but she increased mine to 100k because im raising my son as a single mom, and if something should happen to me - my mother will become my sons guardian. So we talked about it, and we increased it to 100k because that would help her raise my son, and help cover anything he needs if the need arises. I graduated nursing school, and work as a nurse. But my son is special needs. So i live mostly paycheck to paycheck. Lord forbid something happen - theres no way i could afford a funeral and burial without the life insurance. Ive had friends make extremely shi*ty comments about the fact i have life insurance on my son. They act as if I WANT something bad to happen to him. It makes me so mad. I just tell them - No, I dont WANT something to happen. I just know if a car wreck happens tomorrow or some tragic accident and i lose my son - on my own i couldn't afford a funeral. With the life insurance, i dont have to worry about it at all. At least i wont be fooling with a gofundme like yall would be doing.

• 529 plan • Life insurance for the kids • Custodial account (index/mutual funds and stocks)

My parents purchased a "whole" life insurance for me when I was 2. I've used the cash value as an adult - once when I had to learn a hard lesson in credit card debt out of high school. A BIG thing to understand is Cash Value for a down payment on a house is only good if you're selling or have equity in a current house. Otherwise you'll risk losing the value of the insurance policy. We used it for a down payment on a new house and were able to because it's not considered a loan. It's cash value that doesn't require repayment. It helped us go into a new home without a contingency for selling our current home. Then we were able to deposit back in the cash from the proceeds of the sale. I think a whole life policy for a newborn is a great vehicle, for not much money - not a million dollar policy, but 50k - 100k.

5:00 Dave just hangs up on her mid question😂

I don't like the argument that you're not dependent on a child for income. If one of my children passed, i don't think i could work for six months. So insurance on kids should just give parents a cushion in case they can't cope🤷🏽‍♀️

Nice work 🎆✨🎇

Can you share the actual downsides of getting life insurance for the baby. I didn't listen to the last 2 minutes but the first 5 just shared that you thought it was stupid. Why is getting whole life insurance and using that as an investment tool for your child a bad idea? Are there tax restrictions or other hurdles that make it less attractive of an investment opportunity.

If you child doesn't go to college you have to pay tax on all the money as well as 10% - set up an account that doesn't have to go towards something the child may not want to do 18 years from now.

The argument for baby LI is not college. The broker tells you if the kids gets cancer in the future he won't be insurable. So the policy early on garantee they will have life insurance when they're old enough to have a familly. But it is stupid expensive to do that for 20 years or what ever.

If the grandparents want to get a low cost life policy for the child in case something happens let them. The parents can start the 529 account.

My 1st grandchild. GREAT INFO. I sent this to my Son in law IMMEDIATELY. 🤑🤑🤑😁😁😁

3 of my clients children would not qualify today. Glad we did it. One of them used the living benefits for cash on hand. Good to have.❤

A low whole life insurance policy is a good idea for your kid like 25k or 50k that cost $15 a month. Reason be I could not see haggling with the funeral direct about my deceased child’s funeral expense in front of my grieving wife. It’s not for investing in the future.

So investing in IUL is not worth it for a baby, which is more flexible than i529 ? Can someone explain me why ?

What people fail to realize is that life insurance also has living benefits

How about if it builds cash value

$10k put into a index fund for a kid at birth would be $1.6 million at age 65, $121k at age 21 with nothing else added historically.

Nothing wrong with max funding a VUL. Down the road the kid will have access to loans from the cash value and depending on growth could have a massive amount for retirement

Wow, Dave was cold with the mute button

In NY filing jointly you can write off up to 10k per year.

They must be given a time limit to state a question with how fast he hits the button sometimes. It’s a radio show and now RU-vid content, so it’s the personality of the host is the focus. But it is slightly cold from the host to not let the audience be more engaging.

Life insurance isn’t a end all be all but it’s a good tool in my tool belt

No! What on earth does a baby need insurance for? In case it can't support its parents?

What about final expense insurance should something unfortunate happen?

I read the title "should we get life insurance on our baby" hahaha welcome to Jessie's insurance how would you like to assure your baby today my name is Denis the menus

Caller “we are expecting a baby any day now” Dave “what is it” Caller” a chinchilla” Dave:

Could not disagree more. Build a policy that gives the kiddo options in the future. The cash in the policy won't fund college, but it can help with tuition, books, first car, down payment on a house, etc. Find it for 16 years, then have the young man start paying the premiums. Plenty of terrible things happen to kids. The life ins for a kid is about paying back medical costs and the purpose changes when they're an adult.

Life insurance policies for babies are to cover funeral and burial expenses for the child or the adult that the child will become.

I'm still confused what a life insurance policy on a baby is.

Mindset was already wrong when she said, " life insurance shouldn't be needed for baby since there's no income." Dumb statement lol

I got 20 years term life for my son. 20 years later he could cash it out to pay for his ‘if’ “student loans” or use it as a down payment on a mortgage.

Yeah, if you're thinking of offing him??

Christy looks like Nina Arianda from Goliath (Amazon Series)

Dave Ramsey: Yaaaaayyy Me: Haha

Is it a waste of money to have life insurance with no kids

Start a 529.

Re-upload? Why does this happen?

I don't want to wish this on anyone, but what would you do if you baby passed away? Would it cost money to bury your baby? Would you need to take time off from work to grieve? If your baby doesn't have some kind of mutant healing factor that will make them borderline immortal, you should probably get a life insurance policy. Also, sometimes people develop health conditions as they grow into adulthood that makes them uninsurable. One day your baby could be a hard working, wage earning adult, who NEEDS a substantial amount of life insurance, but they won't be able to get any because their health does not permit. If you buy a policy for your baby that has a GUARANTEED INSURABILITY RIDER, they will be able to get MORE life insurance at a later date without having to provide proof of insurability. There are very valid reasons to buy a life insurance policy on your baby besides college planning. Dave doesn't always give the best advice.

Start the kid an UTMA or a 529

Another example of Dave going on about things he doesn't understand. Also at some point he has lost the perspective of people who have very little in the bank and depend on going to work every single day for the check to come in. Life insurance on infants is a great idea and doesn't cost much either.

Just me, and I'm not a parent but I'm pretty sure if my child dies at a young age the least thing I'm gonna be worried about money lol. I mean seriously, your kid dies or grandchild dies are you really gonna be happy if 100k dollars shows up in the bank account? I mean sure you could pay off your mortgage but I'm pretty sure you'd rather pay 10 million billion dollars to get your kid back anyway. Now, if your kid unfortunately develops like severe down syndrome or something where you have to basically take care of them for the rest of their life and all of the medical bills and everything going on with it and there's maybe a higher chance of them dying from this condition and you don't want to be stuck with the tens or hundreds of thousands of dollars of medical debt you may or may not have if that happen then I would say go for it. But at that point they may be uninsurable or have extremely high insurance rates anyway. But either way, getting a chunk of money after your kid dies isn't really going to make you feel better.

There are many types of life insurance policies. She did not specify which exactly she was being offered for her baby. Term and whole life is absolutely stupid for a baby. However, there are policies that help your money grow (of course with insurance cost involved), but eventually it adds up to a lot of money for the child's eventual retirement. These are the IUL policies (Index Universal Life).

🤔 I'm a daughter of da savings bond generation...wen you least suspect it... advice from Uncle Dave dats not in da "baby steps". Monday plans, cash out da rest of da savings bonds 😜

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So...you want to insure against emotional loss? Money fixes that for you? Kids are not providers...no need to insure them.

Whole life insurance can be crazy cheap for babies. Whole life cannot be canceled by the insurer, while term life can.

a life insurance policy so if the baby dies then lots of money? geh, that's betting against yourself in all the worst ways!

😎🖖👌✌👍😁

Dave Ramsey has no clue what he’s talking about here!