Life Insurance for 16 year old

silvercar

I doubt this would be a priority payment for most teenagers.

Jackieboy

I'd think most parents would want to pay for their child's funeral themselves if, God forbid, something like this were to happen.

hcb42

If it's only funeral expenses, better just to put a small amount away each week and just have a fund. Buying a funeral policy at that age would mean if she lives a long life she will have paid for a funeral many times over..if the worse does happen and you cannot pay, well there is support to help there.

forgotmyname

I would do as above £10 away each month. Premium bonds? A chance of winning and you wont get back less than you paid if you dont.

jamesh316

Just reading your post, as I am looking to get life insurance for my 16 year old, surely a no brainer. Having purchased life insurance for mortgage cover at 30+ I was stung with high premiums, I see that it makes total financial sense to insure my 16 year old now on a fixed term policy for about 60 years whilst he is still young enough to benefit from his youth. I am willing to pay the fees for now, as long as it is not too much and then he can then take over payments when he actually needs a mortgage. This will likely save him thousands of pounds over the duration of his life. A wise move I would therefore suggest to all those that seem to think that it's a problem or even strange. By planning now for him, I can limit future financial hardship for him.

dunstonh

surely a no brainer.

How? Who is going to be financially worse off in the event of a 16 year old?

Having purchased life insurance for mortgage cover at 30+ I was stung with high premiums,

Life assurance premiums dont tend to go up much until you get to mid 30s onwards.

I see that it makes total financial sense to insure my 16 year old now on a fixed term policy for about 60 years whilst he is still young enough to benefit from his youth.

It makes no financial sense whatsoever. He probably won't need life assurance until his mid to late 20s. So, you would be paying for 10-15 years without any reason.

This will likely save him thousands of pounds over the duration of his life.

No it wont as the premium is averaged over the term and you seem to be overestimating the cost of the future premium for someone in their 20s, early 30s

I would therefore suggest to all those that seem to think that it's a problem or even strange. By planning now for him, I can limit future financial hardship for him.

Pay the money into a pension for him or help him save for a deposit on a house. Far more useful and beneficial.

Auntie-Dolly

I was looking at this when my son was younger. My thinking was that if (God forbid) something happened to him, how would we as parents be able to return to work and carry on earning? A lump sum would just mean one less thing to worry about.

dunstonh

Auntie-Dolly wrote: »

I was looking at this when my son was younger. My thinking was that if (God forbid) something happened to him, how would we as parents be able to return to work and carry on earning? A lump sum would just mean one less thing to worry about.

A number of life assurance plans include a child death benefit automatically. Usually relatively small amounts but enough for a month or two of lost income.

jamesh316

No, you are wrong. If I end up paying £15 per month over 60 years, then it's a hell of a lot cheaper than £25 for 46 years.

Plus if something unexpected like a major health issue were to come along that would hike premiums, such as a heart condition, diabetes, cancer or a host of other potential pit falls, then I'd feel pretty damn stupid that I did not protect him when he was at the peak of health.

dunstonh

No, you are wrong. If I end up paying £15 per month over 60 years, then it's a hell of a lot cheaper than £25 for 46 years.

Im not wrong as its still going to be around £15 as the increases dont start until later.